Panevezio Statybos Trestas

Annual / Quarterly Financial Statement • Nov 29, 2013

PANEVĖŽIO STATYBOS TRESTAS AB

Consolidated Interim Financial Statements for Nine Months of 2013

29 November 2013 Panevėžys

PANEVĖŽIO STATYBOS TRESTAS AB

Consolidated and Company Financial Statements for Nine Months Ending 30 September 2013

Unaudited

Company register given code 147732969 Address of registered office P. Puzino Str. 1, LT-35173 Panevėžys, Lithuania

STATEMENT OF EXECUTIVE OFFICERS OF THE COMPANY

Hereby we confirm that on the basis of the information available to us, the Consolidated Interim Financial Statements for Nine Months of 2013 made in accordance with the International Financial Reporting Standards is true and shows the assets, liabilities, financial state, and profit or loss of Panevėžio statybos trestas AB and companies of the Group of Panevėžio statybos trestas AB'in a correct manner.

Dalius Gesevičius, Managing Director Panevėžio statybos trestas AB

Deruces

Dalė Bernotaitienė, Finance Director Panevėžio statybos trestas AB

Main data about the issuer

Name of issuer	Public limited liability company Panevėžio statybos trestas
Authorized capital	16,350,000 Litas
Address of registered office	P. Puzino Str. 1, LT-35173 Panevėžys, Lithuania
Telephone	$(+37045)505503$
Fax	$(+37045)505520$
E-mail	$pst(\omega pst.$ It
Legal-organization form	Public limited liability company
Registration date and place	30 October 1993, Panevėžys City Department
Registration No.	AB 9376
Code at the register of enterprises	147732969
VAT code	LT477329610
Administrator of legal entity register	State Enterprise Centre of Registers
Web address	www.pst.lt

Board

Remigijus Juodviršis, Chairman Artūras Bučas Gvidas Drobužas Irma Abromavičienė Vilius Gražys

Management

Dalius Gesevičius, Managing Director

Separate statement of financial position

In Litas

ASSETS	30 Sept. 2013	31 Dec. 2012
Non-current assets	61,818,899	62,361,676
Intangible assets	147,503	189,483
Tangible non-current assets	15,011,510	15,057,724
Investment and amounts receivable in one	45,940,960	46,700,848
year Deferred tax assets	718,926	413,621
Current assets	131,308,301	138,197,334
Inventories	2,438,815	9,022,609
	9,610,936	10,466,093
Advance payments	67,047,005	75,698,974
Amounts receivable	18,428,867	25,117,408
Other current assets	33,782,678	17,892,250
Cash and cash equivalents TOTAL ASSETS	193,127,200	200,559,010

$\tilde{V}$

EQUITY AND LIABILITIES	30 Sept. 2013	31 Dec. 2012
	131,575,689	131,868,420
Equity	16,350,000	16,350,000
Share capital Reserves	6,617,045	6,963,400
Retained profit (loss)	108,608,644	108,555,020
Translation reserve
Minority share
Amounts payable and liabilities	61,551,511	68,690,590
Amounts payable in one year and long term liabilities	2,117,599	2,135,733
Loans and borrowings	0	$\Omega$
	1,238,420	1,195,432
Warranty provision	879,179	940,301
Deferred tax liabilities
Amounts payable in one year and short term liabilities	59,433,912	66,554,857
Loans and borrowings	3,675	539,517
	28,446,039	42,547,398
Trade payables	20,257,168	2,624,945
Prepayments received	0	19,858
Current tax payable	10,727,030	20,823,139
Other liabilities TOTAL EQUITY AND LIABILITIES:	193,127,200	200,559,010

Consolidated statement of financial position

In Litas
ASSETS	30 Sept. 2013	31 Dec. 2012
Non-current assets	44,816,945	41,012,038
Intangible assets	468,363	363,992
Tangible non-current assets	21,527,204	21,366,152
Investment assets	19,132,600	16,947,042
receivable Other investment and amounts
in one year	224,001	148,777
Other intangible assets	3,464,777	2,186,075
Current assets	195,209,113	194,686,519
Inventories	48,620,385	59,167,530
	10,617,288	15,276,564
Advance payments	90,245,385	82,899,886
Amounts receivable	6,372,949	13,768,039
Other assets		23,574,500
Cash and cash equivalents	39,353,106
TOTAL ASSETS:	240,026,058	235,698,557

EQUITY AND LIABILITIES	30 Sept. 2013	31 Dec. 2012
Equity	115,765,094	116,020,464
Share capital	16,350,000	16,350,000
Reserves	7,592,148	7,959,110
Retained profit (loss)	91,115,197	91,510,925
Translation reserve	707,749	200,429
	4,627,857	4,940,669
Minority share	119,633,107	114,737,424
Amounts payable and liabilities
Amounts payable in one year and long	15,038,869	13,823,282
term liabilities	10,420,126	9,452,719
Loans and borrowings	2,124,005	2,122,089
Provisions		2,018,831
Deferred tax liabilities	1,913,781	38,250
Grants and subsidies	120,961
Other payable amounts	459,996	191,393
Amounts payable in one year and short
term liabilities	104,594,238	100,914,142
Loans and borrowings	17,409,054	14,376,391
Trade payables	49,410,328	50,152,221
Prepayments received	21,632,522	10,882,524
Current tax payable	191,497	68,275
Other liabilities	15,950,837	25,434,731
TOTAL EQUITY AND LIABILITIES:	240,026,058	235,698,557

Separate statement of comprehensive income

In Litas

ITEM	30 Sept. 2013	30 Sept. 2012	July through Sept. 2013	July through Sept. 2012
SALE	161,125,581	184,537,678	49,080,261	82,067,486
COST OF SALE	151,112,396	174,191,989	45,084,793	77,814,933
GROSS PROFIT (LOSS)	10,013,185	10,345,689	3,995,468	4,252,553
OPERATING EXPENSES	10,222,877	9,553,581	2,684,723	4,088,197
Sale	251,975	248,536	82,435	73,477
General and administration	9,970,902	9,305,045	2,602,288	4,014,720
TYPICAL OPERATING PROFIT (LOSS)	$-209,692$	792,108	1,310,745	164,356
OTHER ACTIVITIES	1,337,569	$-18,729$	158,457	$-22,425$
Income	2,244,916	756,321	340,005	175,743
	907,347	775,050	181,548	198,168
Expenses FINANCIAL AND INVESTMENT ACTIVITIES	$-1,071,751$	807,790	$-379,010$	548,859
Income	1,376,037	1,172,950	129,838	373,544
Expenses	2,447,788	365,160	508,848	$-175,315$
USUAL ACTIVITY PROFIT (LOSS)	56,126	1,581,169	1,090,192	690,790
WINDFALL PROFIT
LOSSES
PROFIT (LOSS) BEFORE TAXATION	56,126	1,581,169	1,090,192	690,790
PROFIT TAX	$-224,862$	1,245,249	$-310,123$	$-166,785$
NET PROFIT (LOSS)	280,988	335,920	1,400,315	857,575

$\overline{\mathbb{C}}$

Consolidated statement of comprehensive income

In Litas

30 Sept. 2013	30 Sept. 2012	through Sept. 2013	July through Sept. 2012
222,127,552	211,176,713	74,509,301	99,747,021
203,947,810	194,608,961	66,866,307	85,661,769
18,179,742	16,567,752	7,642,994	14,085,252
15,533,093	14,667,208	4,047,191	5,933,543
830,546	776,654	314,890	342,601
14,702,547	13,890,554	3,732,301	5,590,942
2,646,649	1,900,544	3,595,803	8,151,709
1,294,790	1,478,948	221,207	1,648,320
2,284,792	2,377,975	413,795	1,884,789
990,002	899,027	192,588	236,469
$-5,799,749$	214,408	$-2,246,194$	$-636,464$
146,881	1,317,457	$-84, 113$	$-693,743$
5,946,630	1,103,049	2,162,081	$-57,279$
$-1,858,310$	3,593,900	1,570,816	9,163,565
	3,593,900	1,570,816	9,163,565
	1,434,282	$-560,171$	$-27,834$
	2,159,618	2,130,987	9,191,399
	2,470,277	2,146,761	9,097,113
	$-310,659$	$-15,774$	94,286
		$-1,858,310$ $-1,049,036$ $-809,274$ $-188,971$ $-620,303$	July

$\frac{1}{2}$ , $\frac{1}{2}$

$\bar{\mathbf{x}}$ $\mathcal{A}$

Panevėžio statybos trestas AB Interim Financial Statements for Nine Months of 2013

Separate statement of changes in equity

131,575,689 $-408,750$ $-164,969$ 280,988 131,868,420 $-14,423$ 335,920 130,756,191 130,434,694 Total 108,608,644 181,386 280,988 408,750 107,300,658 108,555,020 433,849 335,920 106,530,889 Deferred result 1,635,030 1,635,030 1,635,030 1,635,030 reserve Legal 4,982,015 $-164,969$ 5,328,370 $-181.386$ 5,470,503 $-14,423$ 5,918,775 -433,849 revaluation FA 16,350,000 16,350,000 16,350,000 16,350,000 Authorized capital Re-adjustment value of sold revaluated asset Unrecognized net profit (loss) for 203 Unrecognized profit (loss) for 2012 Balance as of 30 September 2012 Balance as of 1 January 2013 Balance as of 1 January 2012 Revaluation of fixed assets Net profit (loss) for 2013 Net profit (loss) for 2012 Dividend In Litas
	Balance as of 30 September 2013

ł,

$\infty$

Consolidated statement of changes in equity
In Litas	Authorized capital	Revaluation reserve	reserve Legal	Influence of exchange change in rate	Accumulated profit	Losses per company parent share	Minority part	Total
Decrease in revaluation reserve Balance as of 1 January 2012 Net profit (loss) for 2012	16,350,000	116 470,833 6,541,4	2,031,336	572,174	86,400,093 2,470,277 470,833	111,895,019 2,470,277	4,534,146 $-522,904$	116,429,165 $-14,422$ 1,947,373
Revaluation of fixed assets Currency rate change Reserves formed		$-14,422$	12,824	-413,092	$-12,824$	$-14,422$ $-413,092$		$-413,092$
Decrease in revaluation reserve Balance as of 1January 2012 Balance as of 30 September 2012	16,350,000 16,350,000	$-218,369$ 5,909,097 6,056,161	2,044,160 2,050,013	200,429 159,082	218,369 91,510,925 89,328,379	116,020,464 113,937,782	4,940,669 4,011,242	120,961,133 117,949,024
Re-adjustment value of sold Net profit (loss) for 2013 revaluated asset		$-164,969$		507,320	$-188,971$	507,320 $-164,969$ $-188,971$	319,525 $-620,303$	826,845 $-164,969$ $-809,274$
Influence of currency rate change Reserves formed Dividend			16,376		$-408,750$ $-16,376$	408,750	$-12,034$	-420,784
Balance as of 30 September 2013	16,350,000	5,525,759	2,066,389	707,749	91,115,197	115,765,094	4,627,857	120,392,951

Panevėžio statybos trestas AB Interim Financial Statements for Nine Months of 2013

Separate statement of cash flows

In Litas
	Jan. through Sept. 2013	Jan. through Sept. 2012
Cash flow from operating activities
Net profit (loss)	280,988	335,920
Depreciation and amortization costs	1,943,299	2,959,504
Profit (loss) from transfer of non-current assets	$-114,126$	$-78,097$
Income tax expense	$-224,862$	1,245,249
	1,885,299	4,462,576
Change in inventories	6,583,794	$-5,841,673$
Change in amounts receivable	8,651,969	-35,506,353
Change in prepayments	855,157	$-1,696,374$
Change in amounts receivable after one year	$-388,034$	12,717,677
Change in other assets	3,535,126	$-9,711,957$
Change in trade payables	$-14,101,359$	17,494,233
Change in prepayments received	17,632,223	$-9,970,189$
Change in provisions and other liabilities	$-9,915,932$	4,373,908
	14,738,243	$-23,678,152$
Income tax paid	$-249,542$	$-4,370,300$
Net cash from operating activities	14,488,701	$-28,048,452$
Cash flow from investing activities
Acquisition of long term assets (excl. investment)	$-2,209,352$	$-1,248,604$
Transfer of long term assets (excl. investment)	468,373	80,087
Acquisition of investments	0	500
Loans issued	$-1,207,075$	$-17,066,050$
Loans recovered	4,857,091	9,894,187
Dividends and interest received	671,512	750,732
Net cash used in investing activities	2,580,549	$-7,589,148$
Cash flow from financial activities
Dividends, share of profit paid	$-403,359$	$-8,603$
Proceeds from loans and borrowings
Repayments from loans and borrowings
Payment of finance lease liabilities	$-535,842$	$-1,263,103$
Interest paid	$-239,621$	$-342,361$
Net cash from (used in) financing activities	$-1,178,822$	$-1,614,067$
	15,890,428	$-37,251,667$
Increase (decrease) in net cash flow
Cash and its equivalent at the beginning of the period	17,892,250	43,686,824
Cash and its equivalent at the end of the period	33,782,678	6,435,157

Consolidated statement of cash flows

In Litas

n Litas	Jan. through Sept. 2013	Jan. through Sept. 2012
Cash flow from operating activities Net profit (loss)	$-809,274$	2,159,618
Elimination of other non-monetary items Depreciation and amortization costs	2,580,287 $-1,701,054$	3,564,141 $-309,237$
Other non-monetary items	69,959	5,414,522
	10,547,145	$-6,380,009$
Change in inventories	$-7,345,499$	$-32,531,014$
Change in amounts receivable	4,659,276	$-12,914,259$
Change in prepayments	7,307,479	270,198
Change in other assets	$-741,893$	15,106,734
Change in trade payables	10,749,998	1,869,338
Change in prepayments received	$-9,012,833$	2,283,594
Change in provisions and other liabilities	16,233,632	-26,880,896
Elimination of results from financial and investing
activities	1,805,532	$-43,775$
Net cash from operating activities	18,039,164	$-26,924,671$
Cash flow from investing activities
Acquisition of non-current assets (excl.	$-3,010,954$	$-2,049,837$
investment)	622,295	81,359
Transfer of non-current assets (excl. investment)	$-2,185,558$	$-8,044,374$
Acquisition of non-current investment		$-20,000$
Loans issued		1,008,118
Loans recovered	12,387	298,318
Dividends and interest received	138,425	$-8,726,416$
Net cash used in investing activities	$-4,423,405$
Cash flow from financial activities	$-415,393$	$-8,603$
Dividends and share of profit paid	4,597,101	9,872,654
Proceeds from loans and borrowings
Repayments from loans and borrowings	$-597,031$	$-1,413,085$
Payment of finance lease liabilities		$-672,003$
Interest paid	$-1,421,830$	7,778,963
Net cash from (used in) financing activities	2,162,847
Increase (decrease) in net cash flow	15,778,606	$-27,872,124$
Cash and cash equivalent in the beginning of the period	23,574,500	50,063,071
Cash and cash equivalent at the end of the	39,353,106	22,190,947
period

$\frac{1}{2}$

EXPLANATORY NOTE

General Information

Panevėžio statybos trestas AB (hereinafter "the Company") was established in 1957 and for a long tome was known as the North Lithuania Construction Trust (Šiaurės Lietuvos statybos trestas). In 1991 the Company was registered as a State Capital Company. On 30 October 1993 the State Capital Company was reorganized to a Public Limited Liability Company. Company code 147732969. VAT code LT477329610. Registration certificate No. 013732, issued on 27 September 2004 by the State Register Centre Panevėžys Branch.

In January through September 2013 the following subsidiaries were functioning in the company: Gerbusta, Pastatų apdaila, Genranga and Klaipstata. These subsidiaries keep separate records, but their assets, liabilities and financial results are included when preparing financial accountability of the Company. The Company has its representative office in Cherepovets, a branch in Kaliningrad and permanent establishments in the United Kingdom of Great Britain and Northern Ireland, and the Kingdom of Sweden. The financial year of the Company is the calendar year. The period of commercial-economic activities of the Company is unlimited.

The main activity of the Company and its subsidiaries (hereinafter "the Group") is designing and construction of various buildings, structures, facilities, communications and other similar objects in Lithuania and abroad, real estate development. In addition to the listed activities the Company rents out premises and equipment, resells utility and communication services.

As of 30 September 2013 the Group includes the parent company and 9 subsidiaries:

Subsidiaries	Type of activities	Share controlled (per cent)	Registered address
Skydmedis UAB	Production of wood constructions	100	Pramonės Str. 5, Panevėžys Tel. +370 45 583341
Metalo meistrai UAB	Production of metal constructions	100	Tinkly Str. 7, Panevėžys, Tel. +370 45 464677
Vekada UAB	Electrical installation works	96	Marijony Str. 36, Panevėžys Tel. +370 45 461311
Vilniaus papėdė TŪB	Construction works	69	Švitrigailos Str. 8, Vilnius Tel. +370 5 2609405
Alinita UAB	Ventilation and conditioning systems in buildings	100	Dubysos Str. 31, Klaipėda Tel. +370 46 340363
KINGSBUD Sp.zo.o.	Wholesale in construction materials	100	A. Patli 16-400, Suwalki, Poland

PS TRESTS SIA	Construction	100	Vietalvas Str. 5, Riga
BALTILSTROIJ OOO	Construction	100	Sovetskij Ave. 43, Kaliningrad Tel. 0074012350435
PST Investicijos UAB	Real estate development	68	Konstitucijos Ave. 7, Vilnius Tel. +370 5 2728213
Subsidiaries of PST investicijos UAB:
Ateities projektai UAB	Real estate development and sales	100	Lvovo Str. 25, Vilnius
Šeškinės projektai UAB	Real estate development and sales	100	Lvovo Str. 25, Vilnius
Sakališkės UAB	Real estate development and sales	100	Lvovo Str. 25, Vilnius
Kauno erdvė UAB	Real estate development and sales	100	Lvovo Str. 25, Vilnius
Verkių projektas UAB	Real estate development and sales	100	Lvovo Str. 25, Vilnius
ISK Baltevromarket ZAO	Construction investment company	100	Chernyakhovsk Str. 6, Kaliningrad

Authorized capital of the company and its structure

As of 30 September 2013, the authorized capital of the Company was 16,350,000 Litas, it was divided into 16,350,000 ordinary registered shares (hereinafter referred to as ORS), the par value of one share being 1.00 Litas. All shares are intangible and fully paid. The property right for the shares is proved by the record in the stock accounts. The shares of Panevėžio statybos trestas AB are traded at the Vilnius Stock Exchange. On 30 June 2013 the total number of the shareholders who under the ownership right held or controlled more than 5 per cents of the authorized capital of the Company was 2152:

Name, surname of a shareholder (company name, type, headquarter address, company code)	Number of ordinary registered shares held by a shareholder under ownership right (pcs.)	Share of the authorized capital held $(\%)$	Portion of votes granted by the shares held under the ownership right $(\%)$	Portion of votes owned by the shareholder along with acting persons $(\% )$
Panevėžio keliai AB S. Kerbedžio Str. 7, Panevėžys, Company code: 147710353	8,138,932	49.78	49.78
SWEDBANK AS Clients 10060701, Liivalaia 8, 15040	999,483	6.11	6.11
Tallinn, Estonia Freely negotiable shares	8,211,068	50.22	50.22

Changes in Panevėžio statybos trestas AB and OMX Baltic Benchmark GI indexes for January through September 2013

Variation in price of the company shares at the Stock Exchange for January through September 2013 (in Litas)

Last price 31 Dec. 2012	Average share price for Jan. through Sept.	Highest price for Jan. through Sept.	Lowest price for Jan, through Sept.	Last price 30 Sept. 2013
3.208 Litas	4.123 Litas	4.938 Litas	3.418 Litas	4.178 Litas

Basis of interim financial statement preparation

The figures in the interim financial statement are presented in the national currency of Lithuania, Litas, which is also the Company's functional currency.

The same accounting principles were applicable to both - the interim financial statement and to the annual financial statement.

The following currency rates were used when preparing the interim financial statement:

Currency	30 Sept. 2013	31 Dec. 2012 3.4528
1 EUR	3.4528
1RUB	0.0791	0.0859
1 LV	4.9146	4.9520
1 PLN	0.8170	0.8474

Principles of consolidation

Subsidiary companies are the companies controlled by the parent company. Such control is defined as a capability to a company to have determinant effect on other company, manage and influence financial and economic activities to get benefit from that company. For the purposes of control assessment the total available number of shareholders' votes at the General Meeting of Shareholders is considered. The financial statements of subsidiary companies are included into the Consolidated Financial Statement from the day of control gain and are excluded from the day of control loss. During consolidation of financial statement the income and expenses, amounts receivable and payable and unrealized results of the Company Group are eliminated.

Investment in non-current assets

During the three quarters of the year 2013, the investments of the Group in acquisition of non-current assets amounted to 3,010,954 Litas: Panevėžio statybos trestas AB acquired non-current assets for 2,076,880 Litas, Verkių projektai UAB made investments in the amount of 2,185,558 Litas in adapting the premises at Ulonai Business Centre for rent. During the three quarters of the year 2013 the costs related to depreciation and amortization of assets of the Group amounted to 2,580,287 Litas, including 1,943,299 Litas accounted for in the Financial Statement of Panevėžio statybos trestas AB.

i.

Loans

As of 30 September 2013, the loans of the Company Group of PST investicijos UAB amounted to 27,576,553 Litas including short and long term bank credits totaling 23,458,722 Litas.

Guarantees, sureties

As of 30 September 2013, the guarantees of the liabilities of Panevėžio statybos trestas AB Group by credit institutions amounted to 60,883,195 Litas, including 47,354,307 Litas for performance guarantees issued for Baltlitstroj OOO.

Transactions with associated parties

There were no significant transactions made with any associated parties.

Dividends

The Annual General Meeting of the Shareholders of Panevėžio statybos trestas AB that had taken place on 25 April 2013 made the decision to pay dividends for the year 2012 in the amount of 408,705 Litas. Bonuses were paid during the first half of the year, Dividends are paid by DNB bankas AB in accordance with the contract, As of 30 September 2013, 98,5 per cents of dividends have been paid.

Significant changes in the interim financial statement during the reporting period

Referring to the unaudited data, during nine months of the year 2013 the Group of Panevėžio statybos trestas AB (PST) was on the income of 222.1 mln. Litas, that is by 5.2 per cents more than last year, however the result of the Group is loss amounting to 809 thousand Litas.

The PST Company was on the income of 161.1 mln. Litas and had net profit in the amount of 281 thousand Litas.

Drop in exchange rate of the Russian Rouble had a significant negative effect on the results of both -Company and Group of Panevėžio statybos trestas AB. For this reason the loss of the Group in financial activities related to the change in the exchange rate amounted to 4.6 mln. Litas, whereas that of PST amounted to 2.1 mln. Litas.

	Group			Company
	Jan.-Sept. 2011	Jan.-Sept. 2012	Jan.-Sept. 2013	Jan.-Sept. 2011	Jan.-Sept. 2012	Jan.-Sept. 2013
Income	199,751	211,177	222,126	153,057	184,538	161,126
Gross profit	16,676	16,568	18,180	10,783	10,346	10,013
Gross profit margin (per cent)	8.35	7.85	8.18	7.05	5.61	6.21
Net profit	$-12$	2,159	$-809$	692	336	281
Nets profit margin (per cent)	$-0.01$	1.02	$-0.36$	0.45	0.18	0.17
Profit per share (Litas)	0.04	0.15	$-0.05$	0.042	0.02	0.017
Profit before taxes, interest, depreciation and amortization EBITDA	6,944	7,830	2,144	$\mathcal{F}$ 6,203	4,882	2,239
EBITDA margin (per cent)	3.48	3.68	0.97	4.05	2.65	1.39
Return on equity (per cent) (ROE)	$-0.01$	1.90	$-0.70$	0.52	0.26	0.21
Return on assets or asset profitability (ROA)	$\theta$	0.84	$-0.34$	0.31	0.15	0.15
Return on investments (ROI)	$-0.01$	1.72	$-0.60$	0.51	0.25	0.21
Current liquidity ratio	1.73	1.73	1.87	1.72	1.84	2.21
Acid test (Quick) ratio	1.34	1.29	1.40	1.64	1.66	2.17
General liquidity ratio	0.94	0.82	0.97	1.43	1.52	2.14
Asset to equity ratio	0.48	0.44	0.48	0.59	0.60	0.68
Book value per share	7.03	6.97	7.08	8.08	8	8.05
Ratio of share price and book value (P/BV)	0.58	0.51	0.59	0.5	0.44	0.52

The performance results of Panevėžio statybos trestas AB Group and Company (in thousands Litas):