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Vilkyskiu Pienine

Earnings Release Aug 29, 2014

2260_ir_2014-08-29_b0147373-f177-4d22-b3a5-c52439c880fa.pdf

Earnings Release

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VILKYŠKIu PIENINe AB Group ˙ ˛

The results of 6 months of 2014

About the Company

Vilkyškių pieninė AB, was established in 1993 m. On the 30th of June 2014 the Group had 990 employees The production of Diary products is the core of Group business Companys's share capital amounts to 11,9 million. Lt Shares issued by the Company have been included into the Current Trade List of Vilnius Stock Exchange. The shares are listed in the Official List Standards: ISO 9001:2000 and ISO 22000:2000

Companies of the group

AB Vilkyškių pieninė

Parent Company Established in 1993 Main activities: The production of cheese, cream, whey

AB "Modest"

The subsidiary Company Established in 1992 Main activities: The production of melted smoked cheese, cheese with mould, Mozzarella, other kinds of cheese

AB Kelmės pieninė

The subsidiary Company Established in 1993 m. Main activities: The production of fresh dairy products.

AB "Pieno logistika"

The subsidiary Company Established in 2013 Main activities: Rent of buildings

Short history of the Company

1993 Company established
1999-2000 The fully computerized and automated technological line of cheese
production started to work in Vilkyškiai
2000 The company received Export Licence to the European Union
2001 Company acquired Taurage workshop form Mažeikiai subsidiary of
Pieno Žvaigždės AB
2004 Vilkyškių pieninė AB received Export Licence to Russia
2006 acquired "Modest" AB
2006 The Company have been included into the Current Trade List of
Vilnius Stock Exchange
2007 Implement development of main technological line of cheese
production in Vilkyškiai
2008 Acquired Kelmės pieninė
2008 Installed the whey processing shop in Vilkyškiai
2008 These certificates of the standards ISO 9001:2000 and ISO 22000:2000
were presented to Vilkyškių pieninė AB
2009 Kelmės pieninė AB received Export Licence to Russia
2010 Established marketing department
2011 "Modest" AB received Export Licence to Russia
2011 The company began to participate in one of the largest food
exhitions: "Anuga" in Germany and "SIAL" in France
2011 Brand of the company was changed. Vilvi trademark began to used in
Export markets
2011-2012 Many new products were introduced in Lithuanian market; Vilkyskiu
assortment of fresh dairy products was significantly expanded
2012 The second cheese plant development was implemented in Vilkyskiai.
2013 Operations of liquid dairy products packaging line were started, that enables to
package products in Tetra Top packaging.
The building of milk truck washes, garage, warehouse, workshop with household
and auxiliary facilities, administrative offices, engineering networks, parks and
access was put into operation. This building was the largest construction
project in recent years.
Whey products plant extension was completed and that allowed to process
up to 600 tons recycled product per day. At the end of the year, the whey
ultrafiltration project was implemented. This is a new technology,
that allows to breake the whey into its components.
Verslo žinios in conjunction with the market research company "Nielsen" selected
Vilkyškių pieninė AB / Vilkyškių brand as the most successful brand and gave a
nomination of "Brand of the Year 2013".
2005-2013 Company use the support of European Union and other fonds,
involve in social projects

Significant events in H1 2014

  • • In the international food exibition "ProdExpo 2014", in Moscow, Vilkyškių pieninė hard cheese "Jubiliejinis 1934" was awarded with gold medal. Lithuanian product was evaluated in inovative technologies and packing design.
  • • Companie's delegates were participating in food exibition "Gulfood 2014" in Dubay. In exibition was established new realationship with potential costumers.
  • • Delegates of Vilkyškių pieninė visited in Japan were met new potential costumers.
  • • Established a new modern cheese cutting equipment, which alows to cut cheese in slices.
  • • AB Klemes pieninė completed investment project "Investments in milk production" , during this project company established new modern yogurt packaking line. For this project company recieved 0,4 million LTL from EU funds.
  • • AB Vilkyškių pieninė completed investment project "Milk processing company modernization", during this project company established new milk product tanks and a new cheese cutting equipment. For this project company recieved 0,4 million LTL from EU funds.
  • • Started reconstruction of cheese salting pool in Vilkyškių pieninė AB.
  • • Started the reconstruction of compressor in Kelmes Pienine AB.
  • • New gourment taste melted cheese were introduced in Lithuanian market.

Shareholders

Shareholder Shares Ownership interest
Gintaras Bertašius 6,067,206 51%
Linas Strėlis 1,918,215 16%
Non-controlling interest 3,957,579 33%
Capital in total 11,943,000 100%

Trading in the issuer's securities on the regulated markets

7

Main financial indicators

"During the first half of this year, the revenue of the Group amounted to 192 million LTL and it is 22 percent more comparing to the same period of the last year. Net profit for the first half of 2014 was 3,844 thousand LTL, while for the same period last year it was 1,752 thousand LTL. During the first half of this year, the Group of Vilkyškių pieninė AB continued to increase its sels in Central European and Baltic countries, the Persian Gulf countries and other markets. Established comercial relations with potential customers in Singapore and the United States."

(Thousands LTL) 2013 I Q 2013 II Q 2014 I Q 2014 II Q
Revenue 70,395 87,651 97,737 94,496
EBITDA 1,077 5,342 2,570 5,945
EBITDA margin (%) 1.5% 6.1% 3% 6%
Amortisation and depreciation 1,960 1,955 2,081 2,044
Net profit -1,199 2,951 241 3,603
Profit margin (%) -1.7% 3.4% 0.2% 3.8%
Quantity of purchased milk, t 40,493 49,860 43,828 68,968
Profit (loss) per share (Litas) -0.10 0.25 0.02 0.30
Net financial debt 62,470 59,818 61,501 62,486

2013 I Q 2013 II Q 2014 I Q 2014 II Q

Rinkų pasiskirstymas pagal pajamas

(Thousands LTL) H 1 2013 H 1 2014
Lithuania 53,144 34% 60,461 31%
European Union 45,476 29% 63,572 33%
Russia 52,144 33% 56,566 29%
Other countries 7,282 4% 11,634 7%
Total: 158,046 192,233

Income from sold production

(Thousands LTL) H1 2013 H1 2014
Fermented cheese 70,310 44% 92,973 48%
Cream 27,945 18% 39,428 21%
Whey products 7,982 5% 10,395 5%
Sour cream 4,388 3% 7,702 4%
Curd products 20,793 13% 19,453 10%
Jogurt 9,614 6% 10,031 5%
Butter 4,388 3% 3,144 2%
Other income 12,625 8% 9,107 5%
Total income: 158,046 192,233

Vilkyškiu pienine AB ˛ ˙

Vilkyškiai, Pagėgių sav. 277160980 tel. 8-441-55330 fax. 8-441-55242 [email protected] www.vilkyskiu.lt

Contacts

Gintaras Bertašius Director General

tel. 8-441-55330 [email protected]

Vilija Milaševičiutė Economic and Finance Director

tel. 8-441-55102 [email protected]

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