Invalda INVL — Interim / Quarterly Report 2014

Aug 29, 2014

AB INVALDA LT

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

FOR THE SIX MONTHS ENDED 30 JUNE 2014 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 SIX MONTHS ENDED 30 JUNE 2014
(all amounts are in LTL thousand unless otherwise stated)

GENERAL INFORMATION

Board of Directors

Mr. Alvydas Banys (chairman of the Board)
Ms. 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

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

The financial statements were approved and signed by the Management and the Board of Directors on 29 August 2014.

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 SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

Interim consolidated and Company's income statements

	Group		Company
		I Half Year 2014	I Half Year 2013	I Half Year 2014	I Half Year 2013
Continuing operations		Unaudited		Unaudited
Revenue
Facility management		6,043	6,818	-	-
Other production and services revenue		1,963	5,318	-	-
Total revenue		8,006	12,136	-	-
Other income	10.3	1,496	2,844	17,410	4,316
Net gains (losses) on disposal of subsidiaries, associates and joint ventures	9	9,772	1,333	58,956	(517)
Net gains (losses) from fair value adjustments on investment property		-	-	-	-
Net changes in fair value of financial assets at fair value through profit or loss	10.1	774	272	774	272
Split-off		-	-	-	68,071
Changes in inventories of finished goods and work in progress		50	303	-	-
Raw materials and consumables used		(1,507)	(4,017)	(6)	(29)
Employee benefits expenses		(3,792)	(6,720)	(937)	(1,397)
Impairment, write-down and provisions	10.4	(1,024)	(764)	648	(12)
Premises rent and utilities		(830)	(661)	(71)	(91)
Depreciation and amortisation		(376)	(694)	(22)	(26)
Repair and maintenance cost of premises		(1,365)	(1,795)	(27)	-
Other expenses		(1,207)	(1,471)	(337)	(584)
Operating profit (loss)		9,997	766	76,388	70,003
Finance costs	10.2	(205)	(210)	(176)	(182)
Share of profit (loss) of associates and joint ventures		(438)	3,937	-	-
Profit (loss) before income tax		9,354	4,493	76,212	69,821
Income tax credit (expenses)	8	(581)	(269)	(711)	(323)
Profit (loss) for the period from continuing operations		8,773	4,224	75,501	69,498
Discontinued operation
Profit/(Loss) after tax for the period from discontinued operation		9,970	88,986	-	-
PROFIT (LOSS) FOR THE PERIOD		18,743	93,210	75,501	69,498
Attributable to:
Equity holders of the parent		18,805	92,178	75,501	69,498
Non-controlling interests		(62)	1,032	-	-
		18,743	93,210	75,501	69,498
Basic earnings (deficit) per share (in LTL)		0.99	2.05	3.96	1.55
Basic earnings (deficit) per share (in LTL) from continuing operations		0.46	0.09	3.96	1.55
Diluted earnings (deficit) per share (in LTL)		0.99	2.05	3.96	1.55
Diluted earnings (deficit) per share (in LTL) from continuing operations		0.46	0.09	3.96	1.55

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

Interim consolidated and Company's statements of comprehensive income

	Group		Company
	I Half Year 2014	I Half Year 2013	I Half Year 2014	I Half Year 2013
	Unaudited		Unaudited
Profit (loss) for the year	18,743	93,210	75,501	69,498
Other comprehensive income (loss)
Other comprehensive income (loss) that may be subsequently reclassified to profit or loss
Exchange differences on translation of foreign operations	22	(73)	-	-
Share of other comprehensive income (loss) of associates	(4)	-	-	-
Net other comprehensive income (loss) that may be subsequently reclassified to profit or loss	18	(73)	-	-
Other comprehensive income (loss) that will not be reclassified to profit or loss	-	-	-	-
Share of other comprehensive income (loss) of associates - re-measurement gains (losses) on defined benefit plans	-	-	-	-
Net other comprehensive income (loss) not to be reclassified to profit or loss	-	-	-	-
Other comprehensive income (loss) for the period, net of tax	18	(73)	-	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX	18,761	93,137	75,501	69,498
Attributable to:
Equity holders of the parent	18,819	92,120	75,501	69,498
Non-controlling interests	(58)	1,017	-	-
Total comprehensive income attributable to equity holders of the parent arising from:
Continuing operations	8,785	4,225	75,501	69,498
Discontinued operations	10,034	87,895	-	-
	18,819	92,120	75,501	69,498

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

Interim consolidated and Company's income statements

	Group		Company
	2^{nd} Quarter 2014	2^{nd} Quarter 2013	2^{nd} Quarter 2014	2^{nd} Quarter 2013
Continuing operations	Unaudited		Unaudited
Revenue
Facility management	1,522	3,574	-	-
Other production and services revenue	498	2,859	-	-
Total revenue	2,020	6,433	-	-
Other income	782	1,305	16,405	1,980
Net gains (losses) on disposal of subsidiaries, associates and joint ventures	9,772	1,333	58,956	(517)
Net gains (losses) from fair value adjustments on investment property	-	-	-	-
Net changes in fair value of financial assets at fair value through profit or loss	562	1,301	562	1,301
Split-off	-	-	-	68,071
Changes in inventories of finished goods and work in progress	27	302	-	-
Raw materials and consumables used	(407)	(2,238)	(3)	(19)
Employee benefits expenses	(1,175)	(3,439)	(452)	(623)
Impairment, write-down and provisions	(1,024)	(784)	(6)	416
Premises rent and utilities	(325)	(246)	(35)	(43)
Depreciation and amortisation	(100)	(344)	(12)	(12)
Repair and maintenance cost of premises	(238)	(925)	(13)	-
Other expenses	(407)	(781)	(194)	(253)
Operating profit (loss)	9,487	1,917	75,208	70,301
Finance costs	(54)	(134)	(49)	(117)
Share of profit (loss) of associates and joint ventures	(101)	4,342	-	-
Profit (loss) before income tax	9,332	6,125	75,159	70,184
Income tax credit (expenses)	(483)	(392)	(648)	(304)
Profit (loss) for the period from continuing operations	8,849	5,733	74,511	69,880
Discontinued operation
Profit/(Loss) after tax for the period from discontinued operation	7,158	86,058	-	-
PROFIT (LOSS) FOR THE PERIOD	16,007	91,791	74,511	69,880
Attributable to:
Equity holders of the parent	16,091	91,662	74,511	69,880
Non-controlling interests	(84)	129	-	-
	16,007	91,791	74,511	69,880
Basic earnings (deficit) per share (in LTL)	0.87	2.04	3.92	1.56
Basic earnings (deficit) per share (in LTL) from continuing operations	0.46	0.12	3.92	1.56
Diluted earnings (deficit) per share (in LTL)	0.87	2.04	3.92	1.56
Diluted earnings (deficit) per share (in LTL) from continuing operations	0.46	0.12	3.92	1.56

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

Interim consolidated and Company's statements of comprehensive income

	Group		Company
	2^{nd} Quarter 2014	2^{nd} Quarter 2013	2^{nd} Quarter 2014	2^{nd} Quarter 2013
	Unaudited		Unaudited
Profit (loss) for the year	16,007	91,791	74,511	69,880
Other comprehensive income (loss)
Other comprehensive income (loss) that may be subsequently reclassified to profit or loss
Exchange differences on translation of foreign operations	(9)	(91)	-	-
Share of other comprehensive income (loss) of associates	1	-	-	-
Net other comprehensive income (loss) that may be subsequently reclassified to profit or loss	(8)	(91)	-	-
Other comprehensive income (loss) that will not be reclassified to profit or loss	-	-	-	-
Share of other comprehensive income (loss) of associates - re-measurement gains (losses) on defined benefit plans	-	-	-	-
Net other comprehensive income (loss) not to be reclassified to profit or loss	-	-	-	-
Other comprehensive income (loss) for the period, net of tax	(8)	(91)	-	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX	15,999	91,700	74,511	69,880
Attributable to:
Equity holders of the parent	16,085	91,590	74,511	69,880
Non-controlling interests	(86)	110	-	-

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

Interim consolidated and Company's statements of financial position

	Group		Company
	As at 30 June 2014	As at 31 December 2013	As at 30 June 2014	As at 31 December 2013
ASSETS	Unaudited	Audited	Unaudited	Audited
Non-current assets
Property, plant and equipment	46	5,410	46	33
Investment properties	11	-	180,548	-
Intangible assets	57	8,263	57	50
Investments into subsidiaries	9; 16	61,141	-	62,532
Investments into associates and joint ventures	9	-	85,686	-
Investments available-for-sale	1,705	1,705	1,705	1,705
Loans granted	25,500	-	25,500	21,396
Trade and other receivables long term	1,202	1,867	1,202	1,202
Other non-current assets	-	2,848	-	-
Deferred income tax asset	7,072	8,289	7,072	7,652
Total non-current assets	96,723	294,616	98,114	109,633
Current assets
Inventories	-	2,688	-	-
Trade and other receivables	767	19,566	767	1,710
Current loans granted	8,548	30,323	8,548	55,061
Prepaid income tax	-	438	-	-
Prepayments and deferred charges	38	610	38	45
Financial assets at fair value through profit loss	16	12,479	5,602	12,479
Restricted cash	-	5,640	-	-
Cash and cash equivalents	6	41,688	6,463	41,245
Total current assets	63,520	71,330	63,077	64,933
Assets of disposal group classified as held-for-sale	-	-	-	-
Total assets	160,243	365,946	161,191	174,566

(cont'd on the next page)

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

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

	Group		Company
	As at 30 June 2014	As at 31 December 2013	As at 30 June 2014	As at 31 December 2013
EQUITY AND LIABILITIES	Unaudited	Audited	Unaudited	Audited
Equity
Equity attributable to equity holders of the parent
Share capital	13	11,866	24,834	11,866
Own shares	13	-	(20,813)	-
Share premium		17,249	33,139	17,249
Reserves		40,031	97,292	40,031
Retained earnings		89,356	84,374	89,372
		158,502	218,826	158,518
Non-controlling interests		-	360	-
Total equity		158,502	219,186	158,518
Liabilities
Non-current liabilities
Non-current borrowings	12	-	55,824	-
Financial lease liabilities		-	145	-
Government grants		-	46	-
Provisions		-	-	-
Deferred income tax liability		-	15,296	-
Other non-current liabilities		-	2,627	-
Total non-current liabilities		-	73,938	-
Current liabilities
Current portion of non-current borrowings	12	-	44,597	-
Current portion of financial lease liabilities		-	69	-
Current borrowings		-	9,313	-
Trade payables		12	10,417	12
Income tax payable		15	92	15
Provisions		-	-	-
Advances received		-	2,026	-
Other current liabilities	17	1,714	6,308	2,646
Total current liabilities		1,741	72,822	2,673
Total liabilities		1,741	146,760	2,673
Total equity and liabilities		160,243	365,946	161,191

(the end)

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(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	Total equity
				Legal and other reserves	Foreign currency translation reserve
Balance as at 31 December 2013 (audited)	24,834	(20,813)	33,139	97,354	(62)	84,374	218,826	360	219,186
Profit (loss) for the I Half Year of 2014	-	-	-	-	-	18,805	18,805	(62)	18,743
Other comprehensive income (loss) for the I Half Year of 2014	-	-	-	-	18	(4)	14	4	18
Total comprehensive income (loss) for the I Half Year of 2014	-	-	-	-	18	18,801	18,819	(58)	18,761
Share of movements in equity of associates	-	-	-	-	-	72	72	-	72
Value of employee services	-	-	-	-	-	-	-	19	19
Changes in reserves	-	-	-	329	-	(329)	-	-	-
Deemed disposal of subsidiaries due to the change in the status	9	-	-	(37)	-	37	-	1,024	1,024
Decrease of share capital	13	(2,036)	20,813	-	(18,777)	-	-	-	-
Split-off	4	(10,932)	-	(15,890)	(38,838)	44	(13,599)	(79,215)	(1,345)
Balance as at 30 June 2014 (unaudited)	11,866	-	17,249	40,031	-	89,356	158,502	-	158,502

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(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	Total equity
				Legal and other reserves	Foreign currency translation reserve
Balance as at 31 December 2012 (audited)	51,802	-	60,747	241,489	34	38,883	392,955	23,241	416,196
Profit (loss) for the I Half Year of 2013	-	-	-	-	-	92,178	92,178	1,032	93,210
Other comprehensive income (loss) for the I Half Year of 2013	-	-	-	-	(58)	-	(58)	(15)	(73)
Total comprehensive income for the I Half Year of 2013	-	-	-	-	(58)	92,178	92,120	1,017	93,137
Share of movements in equity of associates	-	-	-	-	-	414	414	-	414
Value of employee services	-	-	-	-	-	-	-	79	79
Dividends of non-controlling interests of subsidiaries	-	-	-	-	-	-	-	(311)	(311)
Disposal of subsidiaries	-	-	-	9	-	(9)	-	-	-
Changes in reserves	-	-	-	23	-	(23)	-	-	-
Acquired own shares	13	-	(51,845)	-	-	-	(51,845)	-	(51,845)
Decrease of share capital	13	(6,279)	51,845	-	(45,566)	-	-	-	-
Distribution as a result of split-off		(20,689)	-	(27,608)	(98,601)	-	(62,341)	(209,239)	(23,270)
Acquisition of the non-controlling interest		-	-	-	-	(4)	(4)	(196)	(200)
Non-controlling interest arising on business combination		-	-	-	-	-	-	1	1
Balance as at 30 June 2013 (unaudited)	24,834	-	33,139	97,354	(24)	69,098	224,401	561	224,962

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(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 30 June 2014 (audited)		24,834	(20,813)	33,139	3,140	92,545	27,138	159,983
Profit (loss) for the I Half Year of 2014		-	-	-	-	-	75,501	75,501
Decrease of share capital	13	(2,036)	20,813	-	-	(18,777)	-	-
Split-off	4	(10,932)	-	(15,890)	(1,506)	(35,371)	(13,267)	(76,966)
Balance as at 30 June 2014 (unaudited)		11,866	-	17,249	1,634	38,397	89,372	158,518
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 I Half Year of 2013		-	-	-	-	-	69,498	69,498
Acquired own shares	13	-	(51,845)	-	-	-	-	(51,845)
Decrease of share capital	13	(6,279)	51,845	-	-	(45,566)	-	-
Distribution as a result of split-off		(20,689)	-	(27,608)	(2,616)	(77,100)	(80,956)	(208,969)
Balance as at 30 June 2013 (unaudited)		24,834	-	33,139	3,140	92,545	15,587	169,245

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

Consolidated and Company's statements of cash flows

	Group		Company
	I Half Year 2014	I Half Year 2013	I Half Year 2014	I Half Year 2013
	Unaudited	Unaudited	Unaudited	Unaudited
Cash flows from (to) operating activities
Net profit (loss) for the period	18,743	93,210	75,501	69,498
Adjustments for non-cash items and non-operating activities:
Valuation (gain) loss, net	(118)	(1,012)	-	-
Depreciation and amortization	1,118	4,207	22	26
(Gain) loss on disposal of property, plant and equipment	(13)	20	-	-
Realized and unrealized loss (gain) on investments	(774)	(272)	(774)	(272)
(Gain) loss on disposal of subsidiaries and associates	(20,934)	(1,333)	(58,956)	517
Split-off	-	(85,363)	-	(68,071)
Share of net loss (profit) of associates and joint ventures	(1,536)	(3,473)	-	-
Interest (income)	(871)	(983)	(1,830)	(4,232)
Interest expenses	995	1,026	176	182
Deferred taxes	338	(61)	696	319
Current income tax expenses	333	550	15	4
Allowances	5,077	640	(648)	13
Change in provisions	-	(29)	-	-
Share based payment	19	79	-	-
Dividend (income)	-	(71)	(15,527)	(71)
Loss (gain) from other financial activities	(1)	(15)	(1)	(24)
	2,376	7,120	(1,326)	(2,111)
Changes in working capital:
(Increase) decrease in inventories	(672)	(2,339)	-	(5)
Decrease (increase) in trade and other receivables	(2,341)	(5,572)	820	(2,942)
Decrease (increase) in other current assets	(1,071)	(192)	2	28
(Decrease) increase in trade payables	(1,322)	632	(135)	32
(Decrease) increase in other current liabilities	3,196	608	139	(24)
Transfer (to)/from restricted cash	1,814	(30,921)	-	(29,733)
Cash flows (to) from operating activities	1,980	(30,664)	(500)	(34,755)
Income tax (paid)	38	218	-	(4)
Net cash flows (to) from operating activities	2,018	(30,446)	(500)	(34,759)

(cont'd on the next page)

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

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

	Group		Company
	I Half Year 2014	I Half Year 2013	I Half Year 2014	I Half Year 2013
Cash flows from (to) investing activities	Unaudited	Unaudited	Unaudited	Unaudited
(Acquisition) of non-current assets (except investment properties)	(345)	(5,850)	(42)	(73)
Proceeds from sale of non-current assets (except investment properties)	25	25	-	-
(Acquisition) of investment properties	(1,602)	(927)	-	-
Proceeds from sale of investment properties	87	1,338	-	-
(Acquisition) and establishment of subsidiaries, net of cash acquired	-	(5)	(489)	-
Proceeds from sales of subsidiaries, net of cash disposed	(1,032)	(64)	691	74
(Acquisition) of associates and joint ventures	-	-	-	-
Proceeds from sales of associates and joint ventures	9	40,547	-	40,547
Cash of the subsidiaries left the Group in the split-off	4	(1,469)	(23,402)	-
Payment according to terms of split-off	4	(577)	(12,996)	(577)
Acquisition of loans		(212)	-	(212)
Loans (granted)		(4,074)	(9,034)	(8,326)
Repayment of granted loans		754	30,751	2,759
Transfer to/from term deposits		-	13,482	-
Dividends received		15,527	60	15,527
Interest received		823	861	812
(Acquisition) of and proceeds from sales of financial assets at fair value through profit loss and available-for-sale investments		(6,103)	20,691	(6,103)
Net cash flows (to) investing activities		42,349	14,930	44,587
Cash flows from (to) financing activities
Cash flows related to Group owners
(Acquisition) of non-controlling interests		-	(200)	-
(Acquisition) of own shares	13	-	(51,845)	-
Dividends (paid) to equity holders of the parent		(25)	(530)	(25)
Dividends (paid) to non-controlling interests		-	(311)	-
		(25)	(52,886)	(25)
Cash flows related to other sources of financing
Proceeds from loans		1,402	18,814	1,809
(Repayment) of loans		(9,898)	(3,381)	(7,001)
Interest (paid)		(610)	(1,014)	(141)
Financial lease (payments)		(23)	(140)	-
		(9,129)	14,279	(5,333)
Net cash flows (to) from financial activities		(9,154)	(38,607)	(5,358)
Impact of currency exchange on cash and cash equivalents		12	24	1
Net (decrease) increase in cash and cash equivalents		35,225	(54,099)	38,730
Cash and cash equivalents at the beginning of the period	6	6,463	56,092	2,515
Cash and cash equivalents at the end of the period	6	41,688	1,993	41,245

(the end)

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(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.

The Company is incorporated and domiciled in Lithuania. AB Invalda LT is one of the major companies in Lithuania investing in other businesses and managing assets whose primary objective is to steadily increase the investors equity value, solely for capital appreciation or investment income (in the form of dividends and interest). After redesigning the business model the Company has plans to have entity or entities with asset management license, which would earn management revenue. After the Split-off completed in 2014 the Company's investments are agriculture and facility management segments. Until the Split-off the Company's segments were also furniture manufacturing, real estate, agricultural land, information technology (IT) infrastructure.

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. The Company 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 6 months ended 30 June 2014 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 2013.

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 2013, except adoption of new Standards and Interpretations as of 1 January 2014, noted below.

The main change in the accounting principles is adopting of these standards amendments:

Amendments to IFRS 10, IFRS 12 and IAS 27 - Investment entities

The amendment introduced a definition of an investment entity as an entity that (i) obtains funds from investors for the purpose of providing them with investment management services, (ii) commits to its investors that its business purpose is to invest funds solely for capital appreciation or investment income and (iii) measures and evaluates its investments on a fair value basis. An investment entity will be required to account for its subsidiaries at fair value through profit or loss, and to consolidate only those subsidiaries that provide services that are related to the entity's investment activities. IFRS 12 was amended to introduce new disclosures, including any significant judgements made in determining whether an entity is an investment entity and information about financial or other support to an unconsolidated subsidiary, whether intended or already provided to the subsidiary.

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

2 Basis of preparation and accounting policies (cont'd)

According to the management, The Company meets all the defining criteria of an investment entity after completing the Split-off in 2014 and is presented henceforth as an investment entity according to IFRS 10 (Note 4). The Company consolidates only two subsidiaries establishment in order to provide services related to investment activities (UAB Invalda LT Investments and UAB INVL Fondai). Other subsidiaries and associates are measured at fair value through profit or loss. From the Split-off the Company became the investment entity, so it ceased to consolidate subsidiaries (except two the above mentioned subsidiaries) and recognised the deemed disposal of subsidiaries (sale price is equal to fair value of these entities at the time of the Split-off). The change is accounted for prospectively, therefore comparative figures are not changed. But the results of the real estate, agricultural land, information technology infrastructure segments, which left the Group during the Split-off, are presented as discontinued operation.

Below is presented summary of new accounting principles regarding investment entity:

Investment entity

The Company has multiple unrelated investors and holds multiple investments. Ownership interests in the Company are in the form of equity securities issued by the Company – ordinary registered shares. In the management's opinion, the Company meets the definition of an investment entity as the following conditions exist:

(i) The Company obtains funds from investors for the purpose of providing them with investment management services.
(ii) The Company commits to investors that its business purpose in to invest funds solely for capital appreciation, investment income, or both. And
(iii) The management measures and evaluates its investments and makes investment decisions on a fair value as a key criterion.

Subsidiaries

The Company has no subsidiaries other than those determined to be controlled subsidiary investments. Controlled subsidiary investments are measured at fair value through profit or loss and not consolidated, in accordance with IFRS 10. The fair value of controlled subsidiary investments is determined on a consistent basis to all other investments measured at fair value through profit or loss, and as described below.

The fair value of investments traded in active markets is based on quoted market prices at the close of trading, which is the date closest to the reporting date. The fair value of investments that are not traded in active markets is determined by using valuation techniques. Such valuation techniques may include the most recent transactions in the market, the market price for similar transactions, discounted cash flow analysis or any other valuation models.

Controlled subsidiary investments include the special purpose entities (SOEs) that are incorporated for the purpose of holding underlying investments ("the portfolio companies") on behalf of the Company. As new SPEs are incorporated for each investment, there are no business combinations. The SPEs have no operations other than their respective investment in portfolio companies and providing a vehicle for the onward sale of a portfolio investment. The SPEs are also reflected at fair value, with the key fair value driver being investment in the underlying portfolio company investments that the SPEs hold on behalf of the Company. The SPEs is not consolidated in accordance with IFRS 10, if it is not provide services that relate to the investment entity's investment activities.

Where the Company is deemed to control an underlying portfolio company, whereby the control is exercised via voting rights or indirectly through the ability to direct the relevant activities in return for access to a significant portion of the variable gains and losses derived from those relevant activities, the underlying portfolio company and its results are also not consolidated and are instead reflected at fair value through profit or loss (through the reflection of the value of the respective SPE that holds the underlying portfolio company in the Company's financial statements).

Associates

An associate is an entity, over which the Company has significant influence and that is neither a subsidiary nor an interest in a joint venture. Investments that are held as part of the Company's investment portfolio are carried at fair value even though the Company may have significant influence over those companies.

15

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

2 Basis of preparation and accounting policies (cont'd)

Below is described the other amendments:

IFRS 10 Consolidated Financial Statements

IFRS 10 replaces all of the guidance on control and consolidation in IAS 27 Consolidated and separate financial statements and SIC-12 Consolidation - special purpose entities. IFRS 10 changes the definition of control so that the same criteria are applied to all entities to determine control. This definition is supported by extensive application guidance. IFRS 10 had no impact on the Group's consolidation structure.

IFRS 11 Joint Arrangements

IFRS 11 replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly Controlled Entities—Non-Monetary Contributions by Ventures. Changes in the definitions have reduced the number of types of joint arrangements to two: joint operations and joint ventures. The existing policy choice of proportionate consolidation for jointly controlled entities has been eliminated. Equity accounting is mandatory for participants in joint ventures. The Group has used equity accounting for the interests in joint ventures already. IFRS 11 had no impact on the Group's financial statements for the six months ended 30 June of 2014.

IFRS 12 Disclosure of Interest in Other Entities

IFRS 12 applies to entities that have an interest in a subsidiary, a joint arrangement, an associate or an unconsolidated structured entity. IFRS 12 sets out the required disclosures for entities reporting under the two new standards: IFRS 10, Consolidated financial statements, and IFRS 11, Joint arrangements, and replaces the disclosure requirements currently found in IAS 28, Investments in associates. IFRS 12 requires entities to disclose information that helps financial statement readers to evaluate the nature, risks and financial effects associated with the entity's interests in subsidiaries, associates, joint arrangements and unconsolidated structured entities. To meet these objectives, the new standard requires disclosures in a number of areas, including significant judgments and assumptions made in determining whether an entity controls, jointly controls, or significantly influences its interests in other entities, extended disclosures on share of non-controlling interests in group activities and cash flows, summarised financial information of subsidiaries with material non-controlling interests, and detailed disclosures of interests in unconsolidated structured entities. None of these disclosure requirements are applicable for interim condensed consolidated financial statements. Accordingly, the Group has not made such disclosures.

IAS 27 Separate Financial Statements

IAS 27 was changed and its objective is now to prescribe the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements. The guidance on control and consolidated financial statements was replaced by IFRS 10 Consolidated Financial Statements. The amendment had no impact on the Group's financial statements for the six months ended 30 June of 2014.

IAS 28 Investments in Associates and Joint Ventures

The amendment of IAS 28 resulted from the Board's project on joint ventures. When discussing that project, the Board decided to incorporate the accounting for joint ventures using the equity method into IAS 28 because this method is applicable to both joint ventures and associates. With this exception, other guidance remained unchanged. The amendment had no impact on the Group's financial statements for the six months ended 30 June of 2014.

Amendments to IAS 32 Financial Instruments: Presentation - Offsetting Financial Assets and Financial Liabilities

The amendment added application guidance to IAS 32 to address inconsistencies identified in applying some of the offsetting criteria. This includes clarifying the meaning of 'currently has a legally enforceable right of set-off' and that some gross settlement systems may be considered equivalent to net settlement. The amendment had no impact on the Group's financial statements for the six months ended 30 June of 2014.

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(all amounts are in LTL thousand unless otherwise stated)

2 Basis of preparation and accounting policies (cont'd)

Transition Guidance Amendments to IFRS 10, IFRS 11 and IFRS 12

The amendments clarify the transition guidance in IFRS 10 Consolidated Financial Statements. Entities adopting IFRS 10 should assess control at the first day of the annual period in which IFRS 10 is adopted, and if the consolidation conclusion under IFRS 10 differs from IAS 27 and SIC 12, the immediately preceding comparative period (that is, year 2013 for a calendar year-end entity that adopts IFRS 10 in 2014) is restated, unless impracticable. The amendments also provide additional transition relief in IFRS 10, IFRS 11, Joint Arrangements, and IFRS 12, Disclosure of Interests in Other Entities, by limiting the requirement to provide adjusted comparative information only for the immediately preceding comparative period. Further, the amendments will remove the requirement to present comparative information for disclosures related to unconsolidated structured entities for periods before IFRS 12 is first applied. The amendment had no impact on the Group's financial statements for the six months ended 30 June of 2014.

Amendments to IAS 39 - Novation of Derivatives and Continuation of Hedge Accounting

The amendments will allow hedge accounting to continue in a situation where a derivative, which has been designated as a hedging instrument, is novated (i.e parties have agreed to replace their original counterparty with a new one) to effect clearing with a central counterparty as a result of laws or regulation, if specific conditions are met. The amendments are not relevant to the Group currently, because it has not recognised any hedging instrument.

Judgements

In the process of applying the Group accounting policies, management has made the following judgements, which has most significant effect on the amounts recognised in the consolidated financial statements:

Investment entity

According to the management, The Company meets all the defining criteria of an investment entity from the Split-off in 2014 and henceforth investments in subsidiaries and associates are measured at fair value through profit or loss. The management periodically reviews whether the Company meets all the defining criteria of an investment entity. In addition, the management assesses the Company's operation objective, investment strategy, origin of income and fair value models.

Accounting of the split-off

Management has made a judgement that the split-off completed in 2014 (unlike the split-off in 2013) didn't have to be accounted according to IFRIC 17, "Distribution of Non-cash Assets to Owners", profit or loss is not recognised in the financial statements during the Split-off and it accounted as the transfer of assets at carrying amounts. IFRIC 17 includes an exemption that the Interpretation does not apply to a distribution of a non-cash asset that is ultimately controlled by the same party or parties before and after the distribution. During the split-off shares were allocated proportionally to all shareholders in the Company and in the separated entities, the Company is controlled according to the agreement by the same shareholders group before and after the Split-off, therefore this exemption could be applied.

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.

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(all amounts are in LTL thousand unless otherwise stated)

4 Split-off in 2014

The Extraordinary General Shareholders Meeting of the Company, held on 5 February 2014, adopted resolution to approve the preparation of the terms of split-off of AB Invalda LT. The split-off terms were announced on 21 March 2014. The Extraordinary General Shareholders Meeting approved the terms of the Company's split-off on 28 April 2014. The Split-off was completed on 29 April 2014. According to the terms, three entities AB INVL Baltic Farmland, AB INVL Baltic Real Estate and AB INVL Technology, comprising 47.95% of the Company assets calculated at carrying amounts, were split-off from the Company. These entities will apply for closed-end investment company licenses. The split-off of the Company will allow realizing the earlier announced plan to concentrate into asset management business. Entities, operating in agricultural land, real estate and information technology segments, and three newly established entities (note 9), which initial names were the same as the split-off entities, were transferred to newly split-off entities (UAB Sago was not transferred). Shares were allocated proportionally to all shareholders of the Company (presently there are about 4000 shareholders of the Company) in the separated entities. All the shares of the newly established companies were listed on the NASDAQ OMX Vilnius Exchange from 4 June 2014.

According to the exemption in the IFRIC 17, the Split-off is accounted as the transfer of assets at carrying amounts. It is not recognised any profit or loss.

The Company

Below the split-off of the balance sheet of the Company according to the split-off terms is presented as at 29 April 2014:

	The Company before split-off	AB „INVL Baltic Real Estate“	AB „INVL Baltic Farmland“	AB „INVL Technology“	The Company after split-off
Percent		30.90%	14.45%	2.60%	52.05%
Intangible assets	62	-	-	-	62
Property, plant and equipment	43	-	-	-	43
Investments into subsidiaries	54,540	39,373	6,112	4,013	5,042
Investments into associates and joint ventures	25,108	-	-	-	25,108
Investments available for sale	1,705	-	-	-	1,705
Investments held for trade	4,251	-	-	-	4,251
Deferred income tax asset	7,302	-	68	-	7,234
Loans granted	81,220	14,915	18,943	414	46,948
Prepayments	46	5	-	-	41
Trade and other receivables	166	-	-	-	166
Cash and cash equivalents	1,764	155	339	154	1,116
Total assets	176,207	54,448	25,462	4,581	91,716
Share capital	22,797	7,044	3,294	593	11,866
Share premium	33,139	10,240	4,789	861	17,249
Reserves	76,909	23,765	11,113	2,000	40,031
Retained earnings	27,668	8,550	3,998	719	14,401
Total equity	160,513	49,599	23,194	4,173	83,547
Borrowings	13,074	4,849	2,268	408	5,549
Trade payables	15	-	-	-	15
Income tax payable	14	-	-	-	14
Other liabilities	2,591	-	-	-	2,591
Total liabilities	15,694	4,849	2,268	408	8,169
Total equity and liabilities	176,207	54,448	25,462	4,581	91,716

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

4 Split-off in 2014 (cont'd)

The Group

The carrying amounts of the assets and liabilities of the Group transferred according to the terms of the split-off and derecognised from the statement of financial position are follows:

	Carrying amount at the transfer date
Intangible assets	6,578
Investment properties	167,181
Property, plant and equipment	2,057
Other non-current assets	2,848
Deferred income tax assets	254
Inventories	1,015
Trade and other receivables	16,529
Loans granted	39,059
Prepaid income tax	76
Prepayments and deferred charges	1,174
Restricted cash	2,272
Cash and cash equivalents	2,116
Total assets	241,159
Deferred income tax liability	(15,122)
Borrowings and financial lease liabilities	(130,452)
Trade payables	(6,899)
Income tax payable	(55)
Advance received	(1,567)
Other liabilities	(6,504)
Total liabilities	(160,599)
Total net assets	80,560

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(all amounts are in LTL thousand unless otherwise stated)

5 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:

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, buy grain, provide grain and other raw materials drying, cleaning, handling and storage services.

Facility management

The facility management segment includes facility management of dwelling-houses, commercial and public real estate properties.

Other production and service segment

The other production and service segment is involved in road signs production, wood manufacturing. The entity engaged in growing and trading of ornamental trees and shrubs was transferred from the Group according to the terms of the split-off of the Company in 2013. 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. In the future, when the Group receives asset management entity licence, the asset management segment would be separated from this segment.

Furniture production (disposed)

The furniture segment includes flat-pack furniture mass production and sale. Due to the split-off of the Company in 2013 the subsidiary operating in this segment became an associate of the Group. In May of 2014 entities of the segment were disposed.

Real estate (transferred during the Split-off)

The real estate segment is investing in investment properties held for future development and in commercial real estate and its rent. The subsidiaries active in real estate management and administration, intermediation in buying, selling and valuation of real estate, and in the geodesic measurement of land were transferred from the Group during the split-off of the Company in 2013. Remaining entities were transferred during the Split-off completed in 2014 to AB INVL Baltic Real Estate. Control of UAB Sago was lost due to a bankruptcy proceedings.

Agricultural land (transferred during the Split-off)

The agricultural land segment is involved in investment in agricultural land and its rent. The entities of the segment were transferred during the Split-off completed in 2014 to AB INVL Baltic Farmland.

Information technology infrastructure (transferred during the Split-off)

The information technology infrastructure segment is involved in offering IT infrastructure strategy, security and maintenance solutions and 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. The entities of the segment were transferred during the Split-off completed in 2014 to AB INVL Technology.

Segment revenue, segment expense and segment result include transfers between business segments. Those transfers are eliminated in column 'Inter-segment transactions and consolidation adjustments'.

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.

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

5 Segment information (cont'd)

The following table present revenues and profit information regarding the Group's business segments for the I half year of 2014:

Period ended 30 June 2014	Furniture production	Real estate	Agricultural land	Agriculture	Information technology	Facility management	Other production and service	Inter-segment transactions and consolidation adjustments	Total
Revenue
Sales to external customers	-	-	-	-	-	6,043	1,963	-	8,006
Inter-segment sales	-	-	-	-	-	-	-	-	-
Total revenue	-	-	-	-	-	6,043	1,963	-	8,006
Results
Other income	-	-	-	-	-	9	1,800	(313)	1,496
Net losses from fair value adjustment on investment property	-	-	-	-	-	-	-	-	-
Net gain (losses) on disposal of subsidiaries, associates and joint ventures	-	-	-	1,729	-	7,762	281	-	9,772
Net changes in fair value on financial assets	-	-	-	-	-	-	774	-	774
Segment expenses	-	-	-	-	-	(5,440)	(3,804)	12	(9,232)
Impairment, write-down and allowance	-	-	-	-	-	-	(1,024)	-	(1,024)
Share of profit (loss) of the associates and joint ventures	-	-	-	(205)	-	-	(233)	-	(438)
Profit (loss) before income tax	-	-	-	1,524	-	8,374	(243)	(301)	9,354
Income tax	-	-	-	-	-	(92)	(489)	-	(581)
Discontinued operation	6,118	3,929	(411)	-	33	-	-	301	9,970
Net profit (loss) for the period	6,118	3,929	(411)	1,524	33	8,282	(732)	-	18,743
Attributable to:
Equity holders of the parent	6,118	3,929	(411)	1,524	79	8,282	(716)	-	18,805
Non-controlling interests	-	-	-	-	(46)	-	(16)	-	(62)

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

5 Segment information (cont'd)

The following table present revenues and profit information regarding the Group's business segments for the I half year of 2013:

Period ended 30 June 2013	Furniture production	Real estate	Agricultural land	Agriculture	Information technology	Facility management	Other production and service	Inter-segment transactions and consolidation adjustments	Total
Revenue
Sales to external customers	-	-	-	-	-	6,818	5,318	-	12,136
Inter-segment sales	-	-	-	-	-	1	-	(1)	-
Total revenue	-	-	-	-	-	6,819	5,318	(1)	12,136
Results
Other income	-	-	-	-	-	19	3,556	(731)	2,844
Net losses from fair value adjustment on investment property	-	-	-	-	-	-	-	-	-
Net gain (losses) on disposal of subsidiaries, associates and joint ventures	-	-	-	-	-	1,333	-	-	1,333
Net changes in fair value on financial assets	-	-	-	-	-	-	272	-	272
Segment expenses	-	-	-	-	-	(7,184)	(8,136)	55	(15,265)
Impairment, write-down and allowance	-	-	-	-	-	(787)	23	-	(764)
Share of profit (loss) of the associates and joint ventures	-	-	-	3,982	-	-	(45)	-	3,937
Profit (loss) before income tax	-	-	-	3,982	-	200	988	(677)	4,493
Income tax	-	-	-	-	-	(139)	(130)	-	(269)
Discontinued operation	88,176	885	(151)	-	(601)	-	-	677	88,986
Net profit (loss) for the period	88,176	885	(151)	3,982	(601)	61	858	-	93,210
Attributable to:
Equity holders of the parent	87,072	885	(151)	3,982	(530)	61	859	-	92,178
Non-controlling interests	1,104	-	-	-	(71)	-	(1)	-	1,032

The following table represents segment assets of the Group operating segments as at 30 June 2014 and 31 December 2013:

Segment assets	Furniture production	Real estate	Agricultural land	Agriculture	Information technology	Facility management	Other production and service	Elimination	Total
At 30 June 2014	-	-	-	51,620	-	9,117	99,506	-	160,243
At 31 December 2013	74,079	156,067	36,447	11,607	27,732	9,084	97,848	(46,918)	365,946

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

5 Segment information (cont'd)

The following table represents segment liabilities of the Group operating segments as at 30 June 2014 and 31 December 2013:

Segment liabilities	Furniture production	Real estate	Agricultural land	Agriculture	Information technology	Facility management	Other production and service	Elimination	Total
At 30 June 2014	-	-	-	-	-	-	1,741	-	1,741
At 31 December 2013	-	125,437	19,124	-	26,199	5,464	17,454	(46,918)	146,760

6 Cash and cash equivalents

	Group		Company
	As at 30 June 2014	As at 31 December 2013	As at 30 June 2014	As at 31 December 2013
Cash at bank	41,688	6,298	41,245	2,515
Cash in hand	-	16	-	-
Cash in transit	-	149	-	-
Term deposits with the maturity up to 3 months	-	-	-	-
	41,688	6,463	41,245	2,515

On 30 June 2014, 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)
	-	-

Nordea bank had deducted the amount of LTL 1,618 thousand of the Group's restricted cash to cover overdue instalments of borrowings (Note 12).

7 Dividends

In 2014 and 2013 dividends were not declared.

8 Income tax

	Group		Company
	I Half Year 2014	I Half Year 2013	I Half Year 2014	I Half Year 2013
Components of income tax expense
Current income tax charge	(132)	(77)	(15)	(4)
Prior year current income tax correction	-	-	-	-
Deferred income tax income (expense)	(449)	(192)	(696)	(319)
Income tax (expenses) income charged to the income statement	(518)	(269)	(711)	(323)

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

9 Investment into subsidiaries and associates, becoming investment entity

During the 1st Quarter the Company has established UAB Invalda LT Investments by investing LTL 1,381 thousand. This entity has applied to the Bank of Lithuania for the asset management company license. Also, the Company has invested LTL 30 thousand to newly established entities UAB INVL Baltic Real Estate (current name – UAB Proprietas), UAB INVL Baltic Farmland (current name – UAB Cooperor), UAB INVL Technology (current name – UAB Inventio). These entities are dormant yet. During 2nd Quarter AB INVL Fondai was established by investing LTL 10 thousand.

In March 2014 management of UAB Sago and UAB INTF Investicija has applied to the court regarding bankruptcy (Note 12). On 29 April 2014, when the split-off was completed, UAB INTF Investicija has left the Group. On 16 May 2014 after the court decision regarding bankruptcy of UAB Sago came to force, The Group has ceased to control this entity also.

According to the management the Company is investment entity in accordance with IFRS 10 after the Split-off completed in 2014. Therefore, the subsidiaries are ceased to consolidate and the deemed disposal is recognised. Subsidiaries and associates are measured at fair value (Note 16). The entities having negative equity, are measured at nil. The Group has earned a profit of LTL 14,733 thousand from the deemed disposal. In this profit the profit of 7,018 thousand from UAB Sago, which equity was negative, is included. But the Group has also recognised impairment loss of LTL 4,032 thousand from loans granted by real estate segment entities to UAB Sago. So the carrying amount of transferred net assets during the Split-off (total positive impact of deconsolidation of UAB Sago to the Group profit or loss was LTL 2,986 thousand) was more accurately reflected. The Company has earned a profit of LTL 11,880 thousand from deemed disposal. Due to the bankruptcy of UAB Sago the Company had not suffered any additional loss, because the impairment losses were recognised in the previous accounting periods.

The carrying amounts of the assets and liabilities of the Group derecognised due to deemed disposal are follows:

	Carrying amount
Intangible assets	1,008
Investment properties	15,000
Property, plant and equipment	3,117
Deferred income tax assets	609
Inventories	2,345
Trade and other receivables	5,315
Loans granted	1,069
Prepayments and deferred charges	470
Restricted cash	1,593
Cash and cash equivalents	1,723
Total assets	32,249
Deferred income tax liability	(156)
Borrowings and financial lease liabilities	(31,618)
Trade payables	(2,057)
Income tax payable	(78)
Advance received	(918)
Other liabilities	(3,419)
Total liabilities	(38,246)
Total net assets	(5,997)

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(all amounts are in LTL thousand unless otherwise stated)

9 Investment into subsidiaries and associates, becoming investment entity (cont'd)

Disposal of AB Vilniaus Baldai and additional acquisition of UAB Litagra

On 28 April 2014 the Company signed the agreement with AB Invalda Privatus Kapitalas regarding sale of 45.4% of shares in AB Vilniaus Baldai. The transaction was completed on 28 May 2014. Shares' sale price after deduction of dividends received (LTL 15,527 thousand), amounted to LTL 64,671 thousand. The Company and The Group has recognised the profit of LTL 45,019 thousand and LTL 4,144 thousand from the shares sale, respectively.

On 28 April 2014 the Company signed the agreement with AB Invalda Privatus Kapitalas regarding purchase of 45.45% of shares of UAB Cedus Invest and loans granted by the seller to this entity for LTL 24,124 thousand (for the shares it was paid LTL 10,798 thousand, for the loan – LTL 13,326 thousand). UAB Cedus Invest owns shares of UAB Litagra. So the Group has increased owned shares of UAB Litagra from 20.12% till 36.88%. The Company has invested LTL 27,981 thousand to increase the share capital of UAB Cedus Invest by converting loans granted.

After the Split-off during 2nd Quarter the Company has decreased the share capital of UAB Aktyvus Valdymas and has returned free funds of LTL 691 thousand.

During the 1st Quarter 2013 the subsidiaries, which invest in agriculture land, and two subsidiaries, which hold investments, were split-off as preparing for 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 a resident. Later the entity changed its name to Norway Registers Development East Africa Limited. The net assets of the entity was insignificant, the non-controlling interest was increased by LTL 1 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 3 of the annual financial statements for the year ended 31 December 2013.

In May 2013 the 100% of the shares of UAB Cmanagement was sold for the LTL 1. The Company suffered a 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.

25

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(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
	I Half Year 2014	I Half Year 2013	I Half Year 2014	I Half Year 2013
Gain (loss) from financial assets designated at fair value through profit and loss on initial recognition	431	(697)	431	(697)
Net gain (loss) from financial assets held for trading	343	969	343	969
Net gain (loss) from financial assets at fair value, total	774	272	774	272
Realised (loss) gain from available-for-sale investments	-	-	-	-
	774	272	774	272

10.2. Finance expenses

	Group		Company
	I Half Year 2014	I Half Year 2013	I Half Year 2014	I Half Year 2013
Interest expenses	(199)	(171)	(170)	(148)
Other finance expenses	(6)	(39)	(6)	(34)
	(205)	(210)	(176)	(182)

10.3. Other income

	Group		Company
	I Half Year 2014	I Half Year 2013	I Half Year 2014	I Half Year 2013
Interest income	1,440	2,748	1,830	4,232
Dividend income	-	71	15,527	71
Other income	56	25	53	13
	1,496	2,844	17,410	4,316

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

10.4. Impairment, write-down and provisions

	Group		Company
	I Half Year 2014	I Half Year 2013	I Half Year 2014	I Half Year 2013
Change in provision for impairment of loans granted	(1,018)	(815)	12	(84)
Change in provision for impairment of trade receivables	(6)	21	(6)	-
Impairment on financial assets, total	(1,024)	(794)	6	(84)
Impairment of investments in subsidiaries, associates and joint ventures	-	-	-	-
Reversal of impairment due to increase of recoverable amount of the investments in subsidiaries, associates and joint ventures	-	-	642	72
Change in write-down of inventories	-	-	-	-
Provisions	-	30	-	-
Impairment on non-financial assets and provisions, total	-	30	642	-
	(1,024)	(764)	648	(12)

After the Split-off and deconsolidation of the subsidiaries the loans granted to the subsidiaries were recognised in the statement of financial position. The part of these loans were impaired in the Company in the previous accounting periods. Therefore, loans in the Group were impaired to the same carrying amount and the impairment loss of LTL 1,018 thousand was recognised.

11 Investment properties

In February of 2014 the Group has acquired a flat, located in Kalvarijų 11A, Vilnius, for LTL 330 thousand. In April 2014 the last flat of the above mentioned building was acquired for LTL 360 thousand. By the opinion of the management prices of these transactions better reflects value of the building, located in Kalvarijų 11A, as the whole. According to prices of these transactions the earlier acquired flats of this building were revalued as at 31 March 2014. Therefore, the Group has recognised LTL 572 thousand of the fair value adjustment on investment properties. Besides, the loss from fair value adjustment of LTL 456 thousand of the agricultural land was recognised.

12 Borrowings

On 28 February 2014 the borrowings of LTL 36,464 thousand of subsidiaries UAB INTF Investicija and UAB Sago have matured. The agreement with the bank regarding the extension of terms of borrowings was not reached and the subsidiaries have defaulted. Therefore, the management of subsidiaries initiated bankruptcy procedures (Note 9). The main creditors of subsidiaries are Nordea Bank Finland Plc Lithuania Branch and the Group. In March of 2014 the bank had deducted the amount of LTL 265 thousand of the restricted cash to cover instalments of borrowings.

Due to above mentioned default, according to the terms of credit agreements between AB Invaldos nekilnojamojo turto fondas and Nordea bank, the bank had demanded to repay LTL 3,739 thousand earlier than is set in the credit agreement. By the opinion of the management the amount which has to be paid to the bank is LTL 1,156 thousand. Dispute is settled in the court. The bank had deducted the amount of LTL 1,351 thousand of the restricted cash of the entity to cover the above mentioned liability. The mature of the borrowings of AB Invaldos nekilnojamojo turto fondas is 15 December 2015. The entity pay instalments according to repayment schedule of borrowing.

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(all amounts are in LTL thousand unless otherwise stated)

13 Acquisition of own shares and cancelling of shares

According to the terms of the Split-off completed in 2014 2,036,254 acquired own shares were cancelled, and the reserve for the acquisition of own shares was decreased by LTL 18,777 thousand. In addition, according to the terms of the Split-off, 10,931,304 shares owned by the shareholders, were transferred to the share capital of AB INVL Baltic Farmland, AB INVL Baltic Real Estate and AB INVL Technology.

During the six month period ended 30 June 2013 the Company implemented two share buy-backs. The first share buy-back took place from 19 February until 5 March through the market of official offer. Maximum number of shares to be acquired was set at 5,180,214. Share acquisition price was established at LTL 8,287 per share. All offered shares were bought-back, and the Company has paid for own shares LTL 42,956 thousand, including brokerage fees. The second share buy-back took place 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 to request that their shares are be redeemed by the Company within 45 days after approval of the split – off terms by the general meeting of shareholders (until 24 May 2013). The number of shares acquired during this buy-back was 1,099,343. Share acquisition price was 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 completed in 2013 6,279,557 acquired own shares were cancelled, and the reserve for the acquisition of own shares was decreased by LTL 45,566 thousand. In addition, according to the terms of the split-off, 20,689,038 shares, which were owned by the shareholders, were transferred to the share capital of AB Invalda Privatus Kapitalas.

28

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

(all amounts are in LTL thousand unless otherwise stated)

14 Discontinued operation

Due to the Split-off completed in 2014 the Group has transferred and does not continue activity in the real estate, agricultural land and information technology infrastructure segments. Also the furniture production segment was disposed. Therefore, the result of these segments is presented as discontinued operations. Below detailed profit or loss caption of discontinued operation is presented:

	Group
	I Half Year 2014	I Half Year 2013
Sales revenue	19,855	89,895
Changes in investments assets	118	1,012
Other income	(595)	(1,150)
Changes in inventories of finished goods, work in progress and residential real estate	-	(143)
Raw materials and consumables	(4,204)	(45,825)
Employee benefits expenses	(3,857)	(14,368)
Impairment, write-down and provisions	(4,053)	153
Premises rent and utilities	(3,776)	(8,232)
Depreciation and amortization	(742)	(3,514)
Repairs and maintenance cost of premises	(527)	(2,730)
Other expenses	(4,535)	(9,897)
Operating profit (loss)	(2,286)	5,201
Finance cost	(790)	(891)
Share of profit (loss) of associates and joint ventures	1,974	(464)
Profit (loss) before income tax	(1,102)	3,846
Income tax credit (expense)	(90)	(223)
Profit (loss) for the period before the disposal	(1,192)	3,623
Gain on the split-off completed in 2013	-	85.363
Gain from the disposal	11,162	-
Profit (loss) for the period	9,970	88,986
Earnings per share in LTL:	I Half Year 2014	I Half Year 2013
Basic from discontinued operations (LTL per share)	0.53	1.96
Diluted from discontinued operations (LTL per share)	0.53	1.96
	Group
	I Half Year 2014	I Half Year 2013
Operating cash flows	6.606	3.997
Investing cash flows	(3,139)	(12,241)
Financing cash flows	(4,943)	8,912
Total cash flows	(1,476)	668

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(all amounts are in LTL thousand unless otherwise stated)

15 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 six months ended 30 June 2014 and 2013 were as follows:

Calculation of weighted average for the six months ended 30 June 2014	Number of shares (thousand)	Par value (LTL)	Issued/181 (days)	Weighted average (thousand)
Shares issued as at 31 December 2013	22,797	1	181/181	22,797
Decrease of share capital as at 29 April 2014	(10,931)	1	62/181	(3,744)
Shares issued as at 30 June 2014	11,866	1	-	19,053
Calculation of weighted average for the six months ended 30 June 2013	Number of shares (thousand)	Par value (LTL)	Issued/181 (days)	Weighted average (thousand)
Shares issued as at 31 December 2012	51,802	1	181/181	51,802
Acquired own shares as at 8 March 2013	(5,180)	1	114/181	(3,263)
Acquired own shares as at 27 May 2013	(1,099)	1	34/181	(206)
Decrease of shares capital as at 31 May 2013	(20,689)	1	30/181	(3,429)
Shares issued as at 30 June 2013	24,834	1	-	44,904

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

	Group		Company
	30 June 2014	30 June 2013	30 June 2014	30 June 2013
Net profit (loss), attributable to equity holders of the parent for basic earnings	18,805	92,178	75,501	69,498
Weighted average number of ordinary shares (thousand)	19,053	44,904	19,053	44,904
Basic earnings (deficit) per share (LTL)	0.99	2.05	3.96	1.55

During the I half year of 2014 and 2013 diluted earnings per share of the Group and Company is the same as basic earnings per share.

30

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(all amounts are in LTL thousand unless otherwise stated)

16 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.

According to the management after the Split-off completed in 2014 the Company is investment entity in accordance with IFRS 10. Subsidiaries and associates are measured at fair value through profit or loss.

Investment into shares of UAB Litagra was measured according to the latest deal that has finished at the end of May of 2014 both at the time of becoming an investment entity and at the end of the reporting period (Note 9). Investment in facility management entities was measured using trailing twelve months EBITDA and applying a multiplier of comparable entity AB "City Service", operating in Lithuania. It was decided not to use other foreign companies' multipliers, which were higher than the one used in the calculations due to the fact that facility management is local business dependent on varying Lithuanian legal and business environment. UAB Kelio Ženklai was measured according to its equity deducting recognised deferred tax assets, which would be not realised if the activity would be ceased. On the preliminary assessment the value of UAB Kelio Ženklai reflects its liquidation value. Dormant SPEs are measured according to its equity, because they have only cash and current liabilities.

The following table represents inputs and fair value valuation techniques of subsidiaries used by the Company as at 30 April 2014 (the time when the Company became an investment entity):

Profile of activities	Fair value	Valuation technique	Inputs	Values of inputs
Facility management	6,663	Comparable companies in the market	EBITDA multiple	4.6
Agriculture (before additional acquisition, Note 9)	12,965	Comparable valuation	-	-
Road signs production, wood manufacturing and dormant SPEs	1,368	Liquidation value	-	-

The following table represents inputs and fair value valuation techniques of subsidiaries used by the Company as at 30 June 2014

Profile of activities	Fair value	Valuation technique	Inputs	Values of inputs
Facility management	9,117	Comparable companies in the market	EBITDA multiple	4.5
Agriculture (UAB Litagra)	51,620	Comparable valuation	-	-
Road signs production, wood manufacturing and dormant SPEs	404	Liquidation value	-	-

In June of 2014 the Company has acquired 12.42 % of shares of AB INVL Baltic Real Estate and AB INVL Technology for LTL 7,596 thousand. These investments are measured using quoted prices, because they are listed.

31

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(all amounts are in LTL thousand unless otherwise stated)

16 Financial assets and fair value hierarchy (cont'd)

The following table presents the group's assets and liabilities that are measured at fair value at 30 June 2014:

	Level 1	Level 2	Level 3	Total balance
Assets
Financial assets designated upon initial recognition at fair value through profit or loss
- Facilities management	-	-	9,117	9,117
- Agriculture	-	51,620	-	51,620
- Other activities	-	-	404	404
- Real estate	5,741	-	-	5,741
- Information technology	2,313	-	-	2,313
Financial assets held for trading
Equity securities
- Food industry	2,264	-	-	2,264
- Bank sector	2,161	-	-	2,161
Total Assets	12,479	51,620	9,521	73,620
Liabilities	-	-	-	-

The following table presents the group's assets and liabilities that are measured at fair value on 31 December 2013:

	Level 1	Level 2	Level 3	Total balance
Assets
Financial assets designated upon initial recognition at fair value through profit or loss
- Infrastructure construction and energy sector – equity securities	1,609	-	-	1,609
Financial assets held for trading
Equity securities
- Food industry	2,126	-	-	2,126
- Bank sector	1,867	-	-	1,867
Total Assets	5,602	-	-	5,602
Liabilities	-	-	-	-

During the six months ended 30 June 2014, there were no transfers between Level 1 and Level 2 fair value measurements.

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(all amounts are in LTL thousand unless otherwise stated)

16 Financial assets and fair value hierarchy (cont'd)

Financial instruments in Level 3

The following table presents the changes in Level 3 instruments for the six months ended 30 June 2014.

	Facilities management	Other activities	Total
The carrying amount on the time becoming investment entity	1,355	690	2,045
Gains and losses from the deemed disposal	5,308	678	5,986
Gains and losses recognised in profit or loss after deemed disposal	2,454	(273)	2,181
Decreased share capital – free funds returned	-	(691)	(691)
Closing balance	9,117	404	9,521
Change in unrealised gains or losses for the period included in profit or loss for assets held at the end of the reporting period	7,762	405	8,167

If EBITDA multiple goes by 1 to either direction, correspondingly the value of shares of facility management segments' entities would move to the same direction by LTL 2,416 thousand as at 30 June 2014 (29 April 2014 – LTL 1,825 thousand).

17 Other current liabilities

	Group		Company
	As of 30 June 2014	As of 31 December 2013	As of 30 June 2014	As of 31 December 2013
Employee benefits	251	2,545	250	109
Other	1,463	3,763	2,396	1,487
Total other current liabilities	1,714	6,308	2,646	1,596

18 Related party transactions

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

The Company's transactions with related parties during the I half year of 2014 and related half year-end balances were as follows:

I half year of 2014 Company	Sales to related parties	Purchases from related parties	Receivables from related parties	Payables to related parties
Loans and borrowings	1,723	85	40,557	-
Accounting services	53	-	67	-
Information technology maintenance	-	33	-	2
Dividends	15,527	-	-	-
Payables for share capital of subsidiaries	-	-	-	932
Split-off	-	-	-	70
	17,303	118	40,624	1,004
Liabilities to shareholders and management	-	7,596	-	-

The Company has acquired shares from shareholder UAB Lucrum investicija for LTL 7,596 thousand (Note 16)

33

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(all amounts are in LTL thousand unless otherwise stated)

17 Related party transactions (cont'd)

The Company's transactions with related parties during the I half year of 2013 and related half year-end balances were as follows:

I half year of 2013 Company	Sales to related parties	Purchases from related parties	Receivables from related parties	Payables to related parties
Loans and borrowings	3,749	123	81,873	7,006
Rent and utilities	-	70	-	-
Dividends	-	-	-	-
Other	-	65	136	3
	3,749	258	82,009	7,009
Liabilities to shareholders and management	-	-	-	-

The Group's transactions with related parties during the I half year of 2014 and related half year-end balances were as follows:

I half year of 2014 Group	Sales to related parties	Purchases from related parties	Receivables from related parties	Payables to related parties
Loans and borrowings	721	-	40,557	-
Information technology segment	68	15	-	2
Dividends	15,527	-	-	-
Split-off	-	-	-	70
Other	23	-	67	-
	16,339	15	40,624	1,004
Liabilities to shareholders and management	-	7,596	-	-

The Group's transactions with related parties during the I half year of 2014 and related half year-end balances were as follows:

I half year of 2013 Group	Sales to related parties	Purchases from related parties	Receivables from related parties	Payables to related parties
Loans and borrowings	74	-	22,119	-
Furniture production segment	-	-	845	-
Other	50	2	20	-
	124	-	22,984	-
Liabilities to shareholders and management	58	-	9,796	-