INDEPENDENT AUDITOR S REPORT 3-4 STATEMENT OF FINANCIAL POSITION 5 STATEMENT OF COMPREHENSIVE INCOME 6 STATEMENT OF CHANGES IN EQUITY 7

Transcription

1 COMPANY S FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2013 PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION, PRESENTED TOGETHER WITH THE INDEPENDENT AUDITOR S REPORT AND ANNUAL REPORT

2 Translation note: This version of the accompanying documents is a translation from the original, which was prepared in Lithuanian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of the accompanying documents takes precedence over this translation. TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR S REPORT 3-4 FINANCIAL STATEMENTS: STATEMENT OF FINANCIAL POSITION 5 STATEMENT OF COMPREHENSIVE INCOME 6 STATEMENT OF CHANGES IN EQUITY 7 STATEMENT OF CASH FLOWS 8 NOTES TO THE FINANCIAL STATEMENTS 9 20 ANNUAL REPORT

3 INDEPENDENT AUDITOR S REPORT 3

4 4

5 STATEMENT OF FINANCIAL POSITION ASSETS Note 31 December December 2012 Intangible assets 3 2,000 - Property plant and equipment 4 61,237 - Deferred income tax assets 12 96,269 - Total non-current assets 159,506 - Inventories - - Prepayments 5 7,888 - Trade receivables - - Other accounts receivable 5 14,032 - Other current assets - - Cash and cash equivalents 6 2,075,909 1,000,000 Total current assets 2,097,829 1,000,000 Total assets 2,257,335 1,000,000 SHAREHOLDERS EQUITY Share capital 1 3,000,000 1,000,000 Legal reserve Retained earnings (loss) (822,959) - Total equity 2,177,041 1,000,000 LIABILITIES Current borrowings Current lease liabilities - - Trade payables 8 26,762 - Advances received - - Income tax payable - - Accrued expenses 9 53,460 - Other accounts payable - - Total current liabilities 80,294 - Total shareholders equity and liabilities 2,257,335 1,000,000 The accompanying notes are an integral part of these financial statements. General Manager Dominykas Tučkus 4 April 2014 Head of Finance and Administration Division Augustas Dragūnas 4 April 2014 Accountant Daiva Ribikauskienė 4 April

6 STATEMENT OF COMPREHENSIVE INCOME Note 2013 For the period from 17 December 2012 (date of establishment) till 31 December 2012 Revenue - - Cost of sales - - Gross profit (loss) - - Operating expenses 11 (918,526) - Other activities, net - - Financial activity, net (702) - Profit (loss) before income tax (919,228) - Income tax benefit 12 96,269 - Profit (loss) for the period (822,959) - Other comprehensive income (loss) - - Total comprehensive income (loss) for the period (822,959) - The accompanying notes are an integral part of these financial statements. General Manager Dominykas Tučkus 4 April 2014 Head of Finance and Administration Division Augustas Dragūnas 4 April 2014 Accountant Daiva Ribikauskienė 4 April

7 STATEMENT OF CHANGES IN EQUITY Note Share capital Legal reserve Retained earnings (loss) Total Balance as of 17 December Profit (loss) for the period Other comprehensive income Total comprehensive income (loss) for the period Contribution to the share capital during the 1 establishment 1,000, ,000,000 Balance as of 31 December ,000, ,000,000 (Loss) for the period - - (822,959) (822,959) Other comprehensive income Total comprehensive income (loss) for the period - - (822,959) (822,959) Increase of the share capital 1 2,000, ,000,000 Balance as of 31 December ,000,000 - (822,959) 2,177,041 The accompanying notes are an integral part of these financial statements. General Manager Dominykas Tučkus 4 April 2014 Head of Finance and Administration Division Augustas Dragūnas 4 April 2014 Accountant Daiva Ribikauskienė 4 April

8 STATEMENT OF CASH FLOWS Note 2013 For the period from 17 December 2012 (date of establishment) till 31 December 2012 Cash flows from/to operating activities (Loss) for the period (822,959) - Adjustments for non-monetary items: Add-back of depreciation and amortisation expenses 5,530 - Change in deferred income tax (96,269) - Change in vacation reserve 24,950 - Change in other accruals 28,510 - Elimination of financial activity (702) - Changes in working capital: - Change in other amounts receivable (14,032) - Change in deferred charges (7,888) - Change in amounts payable 14,271 - Net cash used in operating activities (868,589) - Cash flows from investing activities Acquisition of intangible assets (2,000) - Acquisition of property, plant and equipment (52,880) - Interest received 4 - Net cash used in investing activities (54,876) - Cash flows from financing activities Change in borrowings 72 - Increase of share capital 2,000,000 1,000,000 Interest and commission fees paid (698) - Net cash generated from financing activities 1,999,374 1,000,000 Net increase in cash and cash equivalents 1,075,909 1,000,000 Cash and cash equivalents at the beginning of the year 1,000,000 - Cash and cash equivalents at the end of the year 2,075,909 1,000,000 The accompanying notes are an integral part of these financial statements. General Manager Dominykas Tučkus 4 April 2014 Head of Finance and Administration Division Augustas Dragūnas 4 April 2014 Accountant Daiva Ribikauskienė 4 April

9 NOTES TO THE FINANCIAL STATEMENTS 1 General information LITGAS UAB (hereinafter the Company ) is a private limited liability company registered on 17 December 2012 in the Republic of Lithuania. The address of its registered office is Gedimino pr. 33/17-2, Vilnius. The address of the head office is Žvejų g. 14, Vilnius. On 17 December 2012, the Company was established by Klaipėdos Nafta AB for the purpose of pursuing liquefied natural gas (hereinafter LNG ) trading activity and/or natural gas supply through the currently developed LNG Terminal in Klaipėda. At the date of the establishment, the Company s share capital amounted to LTL 1 million and was formed by the contribution of the sole shareholder Klaipėdos Nafta AB. On 14 October 2013, the Company s share capital was increased from LTL 1 million to LTL 3 million by issuing 2 million ordinary shares with the par value of LTL 1 each. All newly issued shares were acquired by Lietuvos Energija UAB, which became the main controlling shareholder of the Company, owning 67 per cent of the Company s share capital. All the shares of the Company are ordinary shares with the par value of LTL 1 each and were fully paid as of 31 December 2013 and As of 31 December 2013 and 2012, the Company had no subsidiaries, branches or representative offices. The Company did not carry out its main activities in 2013 and It is planned that the natural gas supply activities will be launched after the commencement of operations of LNG Terminal in Klaipėda and after complying with all the legal and regulatory requirements. As of 31 December 2013, the Company had the natural gas supply license issued by the National Control Commission for Prices and Energy (hereinafter NCC ). As of 31 December 2013, the number of Company s employees was 9 (31 December 2012: 1). Since the Company was established on 17 December 2012, the statements of comprehensive income, changes in equity and cash flows for 2012 disclose the data for the period from 17 December 2012 to 31 December The Company s management approved these financial statements on 4 April The shareholders of the Company have a statutory right to approve these financial statements or not to approve them and require the preparation of the new set of the financial statements. 2 Accounting principles The principal accounting policies applied in the preparation of the Company s financial statements for 2013 are as follows: 2.1. Basis of preparation The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and the Lithuanian regulatory legislation on accounting and financial reporting. The financial statements have been prepared on a historical cost basis. Standards and interpretations effective in the current period The following standards, amendments to the existing standards and interpretations approved by the International Accounting Standards Board (IASB) and adopted by the EU are effective for the current period: IFRS 13 Fair Value Measurement, adopted by the EU on 11 December 2012 (effective for annual periods beginning on or after 1 January 2013), Amendments to IFRS 1 First-time Adoption of IFRS Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters, adopted by the EU on 11 December 2012 (effective for annual periods beginning on or after 1 January 2013), Amendments to IFRS 1 First-time Adoption of IFRS Government Loans, adopted by the EU on 4 March 2013 (effective for annual periods beginning on or after 1 January 2013), Amendments to IFRS 7 Financial Instruments: Disclosures - Offsetting Financial Assets and Financial Liabilities, adopted by the EU on 13 December 2012 (effective for annual periods beginning on or after 1 January 2013), 9

10 Amendments to IAS 1 Presentation of Financial Statements Presentation of Items of Other Comprehensive Income, adopted by the EU on 5 June 2012 (effective for annual periods beginning on or after 1 July 2012), Amendments to IAS 12 Income Taxes Deferred Tax: Recovery of Underlying Assets, adopted by the EU on 11 December 2012 (effective for annual periods beginning on or after 1 January 2013), Amendments to IAS 19 Employee Benefits Improvements to the Accounting for Post-employment Benefits, adopted by the EU on 5 June 2012 (effective for annual periods beginning on or after 1 January 2013), Amendments to various standards Improvements to IFRSs (cycle ) resulting from the annual improvement project of IFRS (IFRS 1, IAS 1, IAS 16, IAS 32, IAS 34) primarily with a view to removing inconsistencies and clarifying wording, adopted by the EU on 27 March 2013 (amendments are to be applied for annual periods beginning on or after 1 January 2013), IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine, adopted by the EU on 11 December 2012 (effective for annual periods beginning on or after 1 January 2013). The adoption of these amendments to the existing standards has not led to any changes in the Company s accounting policies. Standards and interpretations approved by IASB and adopted by the EU that are not yet effective and were not early applied by the Company At the date of approval of these financial statements the following standards, amendments to the existing standards and interpretations approved by IASB and adopted by the EU were issued but not yet effective: IFRS 10 Consolidated Financial Statements, adopted by the EU on 11 December 2012 (effective for annual periods beginning on or after 1 January 2014), IFRS 11 Joint Arrangements, adopted by the EU on 11 December 2012 (effective for annual periods beginning on or after 1 January 2014), IFRS 12 Disclosures of Interests in Other Entities, adopted by the EU on 11 December 2012 (effective for annual periods beginning on or after 1 January 2014), IAS 27 (revised in 2011) Separate Financial Statements, adopted by the EU on 11 December 2012 (effective for annual periods beginning on or after 1 January 2014), IAS 28 (revised in 2011) Investments in Associates and Joint Ventures, adopted by the EU on 11 December 2012 (effective for annual periods beginning on or after 1 January 2014), Amendments to IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosures of Interests in Other Entities Transition Guidance, adopted by the EU on 4 April 2013 (effective for annual periods beginning on or after 1 January 2014), Amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosures of Interests in Other Entities and IAS 27 (revised in 2011) Separate Financial Statements Investment Entities, adopted by the EU on 20 November 2013 (effective for annual periods beginning on or after 1 January 2014), Amendments to IAS 32 Financial instruments: presentation Offsetting Financial Assets and Financial Liabilities, adopted by the EU on 13 December 2012 (effective for annual periods beginning on or after 1 January 2014), Amendments to IAS 36 Impairment of assets - Recoverable Amount Disclosures for Non-Financial Assets, adopted by the EU on 19 December 2013 (effective for annual periods beginning on or after 1 January 2014), Amendments to IAS 39 Financial Instruments: Recognition and Measurement Novation of Derivatives and Continuation of Hedge Accounting, adopted by the EU on 19 December 2013 (effective for annual periods beginning on or after 1 January 2014). 10

11 In Company s management opinion, the application of these standards, amendments and interpretations will not have significant impact to the Company s financial statements in the period of initial application. Standards and interpretations approved by IASB but not yet adopted by the EU At the present moment, IFRS as adopted by the EU do not significantly differ from regulations adopted by the International Accounting Standards Board (IASB) except from the following standards, amendments to the existing standards and interpretations, which were not endorsed for use in EU as at 1 January 2014 (the effective dates stated below is for IFRS in full): IFRS 9 Financial Instruments and subsequent amendments (effective date was not yet determined), Amendments to IAS 19 Employee Benefits - Defined Benefit Plans: Employee Contributions (effective for annual periods beginning on or after 1 July 2014), Amendments to various standards Improvements to IFRSs (cycle ) resulting from the annual improvement project of IFRS (IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16, IAS 24 and IAS 38) primarily with a view to removing inconsistencies and clarifying wording (amendments are to be applied for annual periods beginning on or after 1 July 2014), Amendments to various standards Improvements to IFRSs (cycle ) resulting from the annual improvement project of IFRS (IFRS 1, IFRS 3, IFRS 13 and IAS 40) primarily with a view to removing inconsistencies and clarifying wording (amendments are to be applied for annual periods beginning on or after 1 July 2014), IFRIC 21 Levies (effective for annual periods beginning on or after 1 January 2014). The Company anticipates that the adoption of these standards, amendments to the existing standards and interpretations will have no material impact on the financial statements of the Company in the period of initial application Presentation currency The Company s functional currency and the amounts in these financial statements are presented in the local currency of the Republic of Lithuania, the litas (LTL). With effect from 2 February 2002, the Lithuanian litas has been pegged to the euro at the exchange rate of LTL for EUR 1, and the exchange rate of the litas in relation to other currencies is set daily by the Bank of Lithuania Intangible assets Intangible assets are measured initially at acquisition (production) cost, less accumulated amortisation and impairment losses, if any. Intangible assets are amortised on a straight-line basis over the best estimate of their useful lives. The following useful lives for certain groups of intangible assets are determined: The groups of intangible assets Average useful live (in years) Licenses 3 Software 3 As of 31 December 2013, the Company had been granted with the natural gas supply license with the unlimited validity period. State charges of the established amount paid for the acquisition of this license are recognised as intangible assets with indefinite useful life Property, plant and equipment Property plant and equipment is recognised when the Company operates and controls it. It is probable that future economic benefits associated with the assets will flow to the Company, the useful life exceeds one year and the cost of the assets can be measured reliably. Depreciation of property, plant and equipment is computed on a straight-line basis. 11

12 The following useful lives for certain groups of property, plant and equipment are determined: The groups of property, plant and equipment Average useful live (in years) Hardware 3 6 Other property and equipment 4 Property, plant and equipment is stated at acquisition (production) cost, less accumulated depreciation and impairment losses, if any. Any gain or loss arising on the disposal of property, plant and equipment is recognised as profit or loss for the year Impairment of property, plant and equipment and intangible assets At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of net realisable value, less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cashgenerating unit) in prior years. A reversal of an impairment loss is recognised as income immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase Financial assets Financial assets are classified as either financial assets at fair value through profit or loss (FVTPL), held-to-maturity financial assets, loans and receivables or available-for-sale financial assets, as appropriate. All purchases and sales of financial assets are recognised on the trade date. Financial assets are initially recognised at acquisition cost which equals to the fair value of consideration paid plus transaction costs for all financial assets not carried at fair value through profit or loss. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are measured at amortised cost using the effective interest rate method. Gains or losses are recognised in profit or loss when the asset value decreases or it is amortised. Interest income is recognised by applying the effective interest rate method, except for short-term receivables when the recognition of interest would be immaterial. 12

13 Effective interest rate method The effective interest method is a method of calculating the amortised cost of financial assets and of allocating interest income over the relevant period. The effective interest rate exactly discounts estimated future cash flows (including all fees paid or received that are an integral part of the effective interest rate, transaction costs and other premiums or discounts) over the expected life of the financial asset, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. Cash and cash equivalents Cash includes cash on hand and cash at banks. Cash equivalents are short-term deposits that are readily convertible to known amounts of cash with original maturities of three months or less and that are subject to an insignificant risk of change in value. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits in current bank accounts, and other short-term highly liquid investments Impairment of financial assets Financial assets are assessed for indicators of impairment at reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Changes in impairment of financial assets are recognised in profit or loss for the period Financial liabilities Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities. Other financial liabilities Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost calculated using the effective interest rate method. Interest expense is recognised using the effective interest rate method. The effective interest rate method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period Expense recognition Expenses are recognised on the basis of accrual and expense matching principles in the reporting period in which they were incurred, irrespective of the time the money was spent Lease Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. 13

14 The Company as lessee Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the outstanding lease liability so as to achieve a constant rate of interest on the outstanding balance of the liability. Finance charges are charged directly to profit or loss. Contingent rentals are recognised as expenses in the periods in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed Income tax Income tax charge is based on profit for the year and considers deferred taxation. Income tax is calculated based on the Lithuanian tax legislation. The standard income tax rate in Lithuania was 15 per cent in 2013 and Current income tax The current income tax charge is calculated on the basis of taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. Income tax is calculated using the tax rate effective at the beginning of the financial year. Deferred income tax Deferred income tax is recognised for temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax liabilities are recognised for all temporary differences, whereas deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition of assets and liabilities in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefit of part or all of that deferred tax asset to be utilised. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be available in future. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period in which the liability is settled or the asset is realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. Current and deferred income tax for the period Current and deferred income tax is charged to profit or loss, except to the extent that they relate to items recognised in other comprehensive income or directly in equity, in which case the tax is also recognised in other comprehensive income or directly in equity, respectively, and except to the extent that they arise from the initial recognition of business combination Provisions Provisions are recognised when the Company has a current legal obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be reliably estimated. 14

15 2.13. Contingencies Contingent liabilities are not recognised in the financial statements. They are disclosed in the financial statements, save for the cases when probability of resources generating economic benefits will be lost is very low. A contingent asset is not recognised in the financial statements but disclosed when an inflow of income or economic benefits is probable Subsequent events Subsequent events that provide additional information about the Company s position at the date of the statement of financial position (adjusting events) are reflected in the financial statements. Subsequent events that are not adjusting events are disclosed in the notes when material Use of significant accounting estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and notes to the financial statements. The effect of any changes in estimates will be recorded in the financial statements, when determinable. Property plant and equipment The key assumptions concerning the determination of the useful life of property, plant and equipment are as follows: expected duration of the use of the asset, expected physical wear and tear, technical or commercial obsolescence arising from changes or improvements in the services, legal or similar restrictions on the use of the asset, such as the expiry dates of related finance leases, etc. Deferred income tax assets Deferred income tax assets are recognised for all unused tax losses in the statement of comprehensive income to the extent that it is probable that taxable profit will be available against which temporary differences can be utilised. Significant management judgment is required to determine the amount of deferred income tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. The total amount of tax losses carried forward as of 31 December 2013 was LTL 915,504 (31 December 2012: LTL 0). Tax losses are carried forward for unlimited period. 3 Intangible assets As of 31 December 2013, the Company s intangible assets were comprised of the state charges incurred for the acquisition of the natural gas supply license issued by the National Control Commission for Prices and Energy. 4 Property, plant and equipment As of 31 December, the Company s property, plant and equipment consisted of the following: Hardware Other equipment Total Acquisition cost As of 31 December additions 48,548 18,219 66,767 - disposals / write-offs As of 31 December ,548 18,219 66,767 Accumulated depreciation As of 31 December annual depreciation charge 4, ,530 - disposals / write-offs As of 31 December , ,530 Net book value as of 31 December as of 31 December ,766 17,471 61,237 As of 31 December 2013 and 2012, the Company did not hold any fully depreciated, but still in active use assets. 15

16 5 Prepayments and other accounts receivable As of 31 December 2013, the Company s prepayments consisted of LTL 6,336 deferred subscription expenses and LTL prepayment for fuel and communication services. Other accounts receivable amounting to LTL 14,032 relate to VAT recoverable from the State budget. 6 Cash and cash equivalents As of 31 December 2013, cash balances amounting to LTL 2,076 thousand at banks were accounted for as cash and cash equivalents. No any restrictions were imposed on the cash balances as of 31 December 2013 and No interest is calculated for cash balances in bank accounts. As of 31 December 2013, the Company had the overdraft agreement signed with the bank under which the credit limit granted amounted to LTL 30 thousand. The Company s withdrawn balance of the overdraft amounted to LTL 72 as of 31 December The annual interest rate set for the withdrawn balance of the overdraft is 17 per cent. The agreement is valid until October Reserves Legal reserve The legal reserve is a compulsory reserve under Lithuanian legislation. Annual transfers of not less than 5% of net profit are compulsory until the reserve reaches 10% of the share capital. As of 31 December 2013 and 2012, the formation of the Company s legal reserve was not started. 8 Trade payables Amounts payable to suppliers for property, plant and equipment acquired (LTL 13,887) information technology, rent, utility, transport, legal and other services rendered (LTL 12,875) are recognised as trade payables as of 31 December Terms and conditions of current financial liabilities are as follows: Trade payables are non-interest bearing and are normally settled within the term of 20 to 30 days; For terms and conditions relating to amounts payable to related parties refer to Note Accrued expenses As of 31 December 2013, accrued expenses were comprised of vacation pay accrual (LTL 24,950) and accrued expenses for consulting, audit and communication services (LTL 28,510). 10 Operating lease The Company has signed agreements for the lease of premises and motor vehicles. The terms of lease do not include any restrictions on the activities of the Company in connection with dividends, additional borrowings or additional longterm lease. The Company s operating lease expenses in 2013 amounted to LTL 11,294 (2012: LTL 0). Future minimum non-cancellable lease payments according to operating lease agreements signed are as follow: 31 December December 2012 No later than 1 year Later than 1 year but no later than 5 years - - Later than 5 years - - Total All Company s lease payments are denominated in the litas. 16

17 11 Operating expenses 2013 For the period from 17 December 2012 (date of establishment) till 31 December 2012 Payroll and related contributions 548,242 - Consulting costs 175,996 - Business travel costs 51,875 - Change in vacation pay accrual 24,950 - Personnel qualification development costs 21,925 - IT costs 15,502 - Lease of premises and utility costs 12,013 - Legal costs 11,201 - Marketing and advertising 7,680 - Depreciation and amortisation 5,530 - Communication costs 3,664 - Transport costs 3,293 - Representation costs 2,186 - Office expenses 1,820 - Bank charges Other operating expenses 31,919 Total 918, Income tax Components of income tax expenses (benefit) 2013 For the period from 17 December 2012 (date of establishment) till 31 December 2012 Current income tax expense - - Deferred income tax expense (income) (96,269) - Income tax expenses (benefit) recognised in (profit) or loss (96,269) - As of 31 December 2013 and 2012, deferred income tax assets and liabilities were recognised applying 15 per cent income tax rate. 17

18 As of 31 December 2013 and 2012, deferred income tax comprised as follows: 31 December December 2012 Deferred income tax assets Vacation pay accrual Tax losses carried forward 137,326 - Deferred income tax assets before impairment of realisable value 138,211 - Less: impairment of realisable value (41,253) - Deferred income tax assets, net 96,958 - Deferred income tax liability Differences in depreciation rates of non-current assets (689) - Deferred income tax liability (689) - Deferred income tax, net 96,269 - In 2013 and 2012, deferred income tax assets and deferred income tax liabilities were estimated using a tax rate of 15 per cent taking account of the time of realisation of temporary differences. Based on the prudence principle and taking into account the probability of the realisation of tax benefit, management did not recognise a part of deferred income tax assets which arises in relation to tax losses carried forward. The amount of income tax expenses reported in the financial statements can be reconciled to the amount of income tax expenses that would result from applying the statutory income tax rate to pre-tax income as follows: 2013 For the period from 17 December 2012 (date of establishment) till 31 December 2012 Income tax expenses computed at the effective income tax rate (15 per cent) 137,884 - Expenses not deductible for tax purposes permanent differences (362) - Effect of change in realisable value (41,253) - Income tax benefit (expenses) recognised in profit or (loss) 96, Financial assets and liabilities and risk management In 2013 and 2012, the Company s financial assets comprised cash and cash equivalents, whereas financial liabilities included current liabilities to banks for the overdraft and trade payables for non-current assets sold and loans granted. Credit risk The Company does not face significant credit risk concentration, because currently the Company does not pursue its main activities and does not hold significant balances of financial assets, except for cash balances which are held at banks belonging to financial groups that are rated at not lower than A- according to the Standard & Poor s long-term borrowing ratings. Interest rate risk As of 31 December 2013 and 2012, the Company had no assets or significant liabilities bearing interest rate. According to the management, the Company does not face significant interest rate risk. 18

19 Liquidity risk The Company s policy is to maintain sufficient cash and cash equivalents or have available funding through an adequate amount of committed credit facilities to meet its commitments at a given date in accordance with its strategic plans. The Company s liquidity (total current assets / total amounts payable within one year and current liabilities) and quick ratios ((total current assets inventories) / total amounts payable within one year and current liabilities) as of 31 December 2013 were and 26.13, respectively. As of 31 December 2013, all the Company s financial liabilities should be settled within the term of 30 days and they do not bear any interest rate, except for financial liabilities to banks which are subject to annual interest rate of 17 per cent. Foreign exchange risk The Company does not face significant foreign exchange risk, since all the financial assets and financial liabilities are denominated in the Lithuanian litas or the euros. The Company s policy is to match the cash flows related to highly probable future sales and purchases in foreign currencies. The Company is not using any financial instruments to hedge against the foreign exchange risk. Fair value of financial instruments The Company s financial assets consist of other accounts receivable, as well as of cash and cash equivalents, the carrying amount of which approximates their fair (market) value. The Company s financial liabilities consist of trade payables, which should be settled within the term of 30 days. The carrying amount of the Company s financial liabilities approximates their fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial assets and financial liabilities is obtained from quoted market prices or discounted cash flow models as appropriate. Capital management The Company defines its capital as authorised share capital, legal reserve and retained earnings. The primary objective of the Company s capital management is to ensure that the Company complies with externally imposed capital requirements. The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of its activities. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company is obliged to keep its equity at not less than 50 per cent of its share capital, as imposed by the Law on Companies of the Republic of Lithuania. As of 31 December 2013 and 2012, the Company was in compliance with this requirement. 14 Related party transactions The parties are considered related when one party has the possibility to control the other one or have significant influence over the other party in making financial and operating decisions. Starting from 14 October 2013, companies of Lietuvos Energija UAB group are treated as the related parties of the Company. Prior to this date Klaipėdos Nafta AB, the Company s sole shareholder, was treated as the related party of the Company. As of 31 December 2013, Lietuvos Energija UAB group consisted of the following companies: Lietuvos Energija UAB the ultimate controlling shareholder of the Company; Lietuvos Energijos Gamyba AB; LESTO AB; NT Valdos UAB; Duomenų Logistikos Centras UAB; ELEKTROS TINKLO PASLAUGOS UAB; Kauno Energetikos Remontas UAB; Gotlitas UAB; Energijos Tiekimas UAB; Public institution Republican Centre of Training for Energy Specialits; Energijos Tiekimas OU; Energijos Tiekimas SIA; VAE SPB UAB. The Company s parent entity is the State of Lithuania. For the purposes of the related party disclosure the State of Lithuania excludes state and local authorities. 19

20 Transactions with related parties conducted during 2013, and year-end balances arising on these transactions are given in the table below: 2013 Purchases of services Purchases of PP&E Sales Accounts receivable Accounts payable Duomenų Logistikos Centras UAB 15, ,554 NT Valdos UAB 13,957 11, ,254 27,548 11, ,808 The Company purchased services of lease of premises and IT services from related parties. In 2012 except for the transaction related to the share capital contribution, the Company did not conduct any transactions with the related parties. There were no intercompany debt balances as of 31 December No guarantees were granted or received. Remuneration of the management and other payments The remuneration of the Company s management amounted to LTL 304,401 in 2013 (LTL 0 in 2012). The management consists of the CEO and Managers of Divisions (4 Managers of Divisions as of 31 December 2013 and 0 as of 31 December 2012). As of 31 December 2013 and 2012, no loans, guarantees or any other benefits were paid or calculated, nor any assets were transferred to the Company s management. 15 Subsequent events Significant events at the Company that occurred subsequent to the date of the statement of financial position until the date of the approval of the financial statements were as follows: Based on Order of 10 February 2014 of the Minister of Energy the Company was assigned with the functions of the designated supplier committed to ensure uninterrupted operation of the LNG Terminal in Lithuania. From the beginning of 2015, based on the agreement to be concluded with a supplier of liquefied natural gas, the Company will be obliged to supply to the LNG Terminal a minimum required quantity of natural gas, i.e. 540 million cubic meters, which is necessary to ensure the uninterrupted operations of the LNG Terminal. 20

21 THE COMPANY S ANNUAL REPORT ANNUAL REPORT Reporting period covered by the annual report The annual report of LITGAS UAB for 2013 covering the period from 1 January 2013 to 31 December 2013 was prepared in accordance with Article 25 of Section 5 of the Lithuanian Law on Financial Statements of Entities and the Outline for the Guidelines for the Ensurance of Transparency of Operations of State-owned Enterprises. Further in this report LITGAS UAB is referred to as LITGAS or the Company. Main data of the Company Company name UAB LITGAS Legal form Private limited liability company Authorised share capital LTL 3,000,000 Date and place of registration 17 December 2012, State Enterprise the Centre of Registers Company code Registered office address Žvejų g. 14, Vilnius Register of the Company State Enterprise the Centre of Registers Fax info@litgas.lt Website LITGAS UAB is a company established for the purpose of pursuing liquefied natural gas (hereinafter LNG ) supply activity through the currently developed LNG Terminal in Klaipėda and trade in natural gas. The Company belongs to Lietuvos Energija group of energy companies. The Company was established in December 2012 by Klaipėdos Nafta AB, which implements the project on the construction of the LNG Terminal. In autumn of 2013, the state-owned enterprise Lietuvos Energija UAB became the main shareholder of the Company holding 66.67% of shares. Klaipėdos Nafta AB continues to hold the remaining 33.33% of shares, however, it is not involved in the management of the Company and based on the shareholder agreement has transferred its voting rights in the meetings of shareholders of LITGAS to Lietuvos Energija UAB. In such a way the requirements stipulated in the Third Energy Package of the EU and the Lithuanian Law on Electricity applicable to the separation of activities of energy supply and generation from the transmission activity have been implemented. During 2013, LITGAS UAB did not carry out its main activities. The activity of supply of natural gas is expected to be started from the commencement of operations of the LNG Terminal after the requirements of the legal acts have been implemented. As of 31 December 2013, the Company had the natural gas supply license issued by the National Control Commission for Prices and Energy. The Company's mission is to create a sustainable value by ensuring the diversification of the natural gas supply activity and a reliable supply of natural gas. The Company's vision is to pursue financially sustainable operations and become one of the largest and most important suppliers of LNG in the Baltic States. On 10 February 2014, the Company was selected as a designated supplier by way of a public tender and approved by the order of the Minister of Energy. The Company is committed to ensure uninterrupted operation of the LNG Terminal in Lithuania. From the beginning of 2015, based on the agreement to be concluded with a supplier of liquefied natural gas, LITGAS will be obliged to supply to the LNG Terminal a minimum required quantity of natural gas, i.e. 540 million cubic meters, which is necessary for the ensurance of uninterrupted operation of the LNG Terminal. The Company is the enterprise of strategic importance to the national security. The main objective of the Company is to ensure an effective operation of the alternative gas supply source, the LNG Terminal, by regularly supplying a minimum required quantity of natural gas. This activity would allow Lithuania implementing its strategic objectives such as the creation of the access to the global natural gas market and the opportunity for suppliers to benefit from its advantages, establishment of preconditions for the ensurance of safety of supply and competition on the Lithuanian natural gas supply market. The Company also plans to engage in small and medium-sized commercial activities which would be focused on the supply of seaports of the region with LNG to be used as fuel for ships. 21

22 THE COMPANY S ANNUAL REPORT Overview of the Company's operations and significant events of the reporting period As it was mentioned above, LITGAS UAB did not carry its main activities in Irrespective of that, the Company took an active part in the drafting and improvement of legal acts and other measures aimed at creating competition in the natural gas supply market in Lithuania. The Company's employees participated in discussions on the drafting of amendments to the Lithuanian Law on the Liquefied Natural Gas Terminal, amendments to Order No of the Lithuanian Government of 7 November 2012 Regarding the Approval of the Outline for the Procedure for the Diversification of the Natural Gas Supply, submitted comments for the project Rules on the Use of the Liquefied Natural Gas Terminal prepared by Klaipėdos Nafta AB. Aiming to implement requirements for the diversification of the natural gas supply, in October 2012 Klaipėdos Nafta AB started the purchase of liquefied natural gas ("LNG") under long-term agreements. In autumn of 2013, this purchase process was assigned to LITGAS UAB. Overall sixteen initial proposals from potential suppliers were received. In January 2014, the list of potential suppliers was reviewed to include only those LNG suppliers who submitted the best proposals in the first phase. At the date of the preparation of the annual report, direct negotiations were conducted with the short-listed potential suppliers. In the middle of 2014, the Company plans to sign a five-year supply agreement with one of the suppliers who offered the most favourable terms and conditions during negotiations. In autumn of 2013, seeking to ensure a sustainable supply of natural gas and create conditions for the implementation of plans of the commercial activity, the Company also announced plans to sign master trade agreements. These agreements will allow an operative and effective purchase and sale of gas in the spot market. The master agreements do not include any purchase or sale commitments. Basically, they serve as a framework defining such matters as confidentiality, settlement terms and others in order to avoid negotiating general terms and conditions in each purchase transaction and to shorten the purchase process. After the conclusion of the master agreements, the list of potential suppliers will be draw up, from which the Company will purchase LNG when needed. Separate arrangements will be concluded for each purchase to indicate a concrete quantity of gas purchased and the price, delivery and settlement terms. The first master agreements are expected to be signed in March to April In 2014, the master agreements on trade in LNG should help to guarantee the quantity of LNG acquired for the purpose of commissioning process of the LNG Terminal. The commissioning process of the LNG Terminal is scheduled to begin in Q4 of In 2013, the Company also initiated the procurement procedures for funding services which will be used to finance purchase transactions of LNG and transactions related to the natural gas supply activity. The total value of funding services to be procured is EUR 125 million (approx. LTL million) which was calculated in consideration of the maximum funding requirement. The model selected, i.e. funding of transactions using own, borrowed funds and guarantees, is a common practice for funding transactions in commodity market. Such a model is more effective than the one which involves the use of only own funds as the cost of equity is higher than the cost of debt capital. It is expected that the agreement on funding services will be signed for the term of two years with the possibility to extend the term for additional one year by applying the extension option for not more than three times. It is expected that the agreement on funding services will be signed in the middle of In December 2013, the Company signed the agreement with the Latvian natural gas company Latvijas Gaze on the possibility to use Inčukalns Underground Gas Storage Facility which is held by Latvijas Gaze. The agreement signed is valid until 10 February 2017 and the maximum contract value is LTL 20 million. With effect from 2015, up to 100 million cubic meters of gas is expected to be stored in this facility. LITGAS UAB plans to use Inčukalns Underground Gas Storage Facility when needed by paying for capacities actually used. The services of the storage facility will allow LITGAS managing gas flows more flexibly and purchasing LNG in the spot market under more favourable terms. The agreement was signed following the completion of the procurement procedures. Inčukalns Underground Gas Storage Facility is the only natural gas storage facility in the region which can be technically accessed by Lithuania. During 2013, LITGAS entered into the agreements on the purchase of legal and other services which will assist the Company in concluding agreements on the purchase of LNG with potential LNG suppliers in the near future and in implementing the natural gas supply activity following the deadlines stipulated in the legal acts. In 2013, the Company was not engaged in any research and development activities. 22

23 THE COMPANY S ANNUAL REPORT Presented below is the timetable of the Company's operations. Negotiations on the supply of gas and ensurance of funding The agreement on the supply of gas is signed. The agreement on the funding of operations is signed. The agreements with energy producers are signed July. The agreement on commissioning cargo. October. Arrival of commissioning cargo in Klaipėda seaport Expected launch of the LNG Terminal 2012 Q1 Q1 of of Q2 of 2013 Q3 of 2013 Q4 of 2013 Q1-2 of 2014 Q3-4 of The agreement on the lease of the FSRU was signed Construction of the FSRU; construction of the quay and gas pipeline October. Arrival of the FSRU in Klaipėda seaport Business environment In 2013, the average price of natural gas in Lithuania was LTL 1,247 (approx. USD 480) for 1,000 cubic meters. In other Baltic countries prices were around LTL 1,000 per 1,000 cubic meters. In 2013, 2.67 billion cubic meters of gas were transmitted to consumers in Lithuania, which is a 18.4% decrease compared to Gas is imported through the pipeline from the single supplier Russian company Gazprom. The major importers are as follows: Achema AB (40.1% of the total amount imported to Lithuania), Lietuvos Dujos AB (37.2%), Dujotekana UAB (14.1%), Kauno Termofikacijos Elektrinė UAB (8.2%), Haupas UAB (0.4%). The highest decline in import (by 25.1%) was incurred by Achema AB. The volume of import of Dujotekana UAB, Haupas UAB and Lietuvos Dujos AB decreased by 19.8%, 19.5% and 13.8%, respectively. The rise in import by 1.2% was observed only by Kauno Termofikacijos Elektrinė UAB. In 2013, the following works and measures focused on the promotion of competition in the Lithuanian and Baltic natural gas markets and the diversification of supply gained momentum: In implementing the provisions of the Third Energy Package of the EU, the transmission activity was separated from the activities of supply and distribution after the establishment of the new transmission system operator Amber Grid AB, Lietuvos Dujos AB transferred to the latter company the right to manage gas transmission pipelines. The separation of the management of the companies through the shareholder structure is scheduled to be completed by the end of October The separation of the gas distribution activity from the supply activity will also have to be affected. The construction of the floating storage and regasification unit (FSRU) in the shipyard of Hyundai Heavy Industries Co Ltd in South Korea was nearly completed and trials of this unit constructed for Lithuania were started. The construction of the jetty and the interconnector of the LNG Terminal was started. The construction of Jurbarkas-Klaipėda gas transmission pipeline started in 2007 was completed. The total of 165 km of the gas transmission pipeline with a diameter of 400 mm were constructed, two new gas distribution stations were built in Jurbarkas (in 2007) and in Klaipėda (in 2013), the node connecting the LNG Terminal to the gas transmission system was built. The Lithuanian Government recognised the project on the enhancement of the capacity of Klaipėda-Kuršėnai gas pipeline as the project of the high economic importance to the State. The construction of this pipeline will increase the capacity of Klaipėda-Kiemėnai gas pipeline and it will be possible to use the LNG Terminal at its full capacity, i.e. 3 billion cubic meters per year. Consequently, conditions will be created for the LNG Terminal to gain the status of the regional terminal. The construction of the gas pipeline is expected to be completed by the end of 2015 and investments would amount to LTL 220 million. Works related to the Lithuanian-Polish gas interconnection are moving forward. The feasibility study of the project on this interconnection with the length of 534 km was finalised last year and the preparation of the special plan was started. The estimated cost of the Lithuanian-Polish gas interconnection is around LTL billion and its construction could be started in 2016 and the completion is expected in

24 THE COMPANY S ANNUAL REPORT Both these interconnections, as well as the project on the enhancement of the capacity of the Lithuanian- Latvian gas interconnection, were included in the EU List of Projects of Common Interests. Permit issuance for projects included in this list is speeded up and the right to apply for financial assistance under the EU special support instruments is granted. The ecological impact assessment of the Estonian-Finnish gas interconnection Balticconnector across the Gulf of Finland of the Baltic Sea was started. The sea bed along the planned route of the interconnection will be examined. The value of the project is around LTL 380 million. Financial assistance from the EU funds is expected to be received for the implementation of this project. The main forecasted events and trends in 2014 that might influence the Lithuanian natural gas market are as follows: It is projected that in 2014 the consumption of natural gas in Lithuania will remain at a similar level as that in the previous year. In the middle of 2014, the agreement on the procurement of LNG with the validity term of five years is expected to be signed, under which the supply of the minimum required quantity of natural gas, i.e. 540 million cubic meters, to the LNG Terminal will be guaranteed. In Q3-4 of 2014, the FSRU is expected to arrive in Klaipėda and its commissioning process will start in the fourth quarter. The LNG commissioning cargo will also arrive at that time. By 31 October 2014, Lietuvos Dujos AB and Amber Grid AB will be required to have separate shareholders in such a way a final separation of the control of the transmission activity from the control of the supply and distribution activities will be effected. In 2014, the construction of Klaipėda-Kuršėnai gas pipeline will be started. By May 2014, perspectives for the project on the LNG Terminal planned to be jointly constructed by Finland and Estonia should emerge. Under the memorandum on the project for the interconnection Balticconnector, which will connect gas pipelines of both countries, and the LNG Terminal signed between Estonia and Finland in March, Finish company Gasum and Estonian company EG Vorguteenus assumed the commitment to provide the technological and economic justification of the LNG Terminal. The construction of Świnoujście LNG Terminal in Poland is expected to be completed and its operation should be started at the end of In the first phase, the planned capacity of this terminal will reach 5 billion cubic meters per year. The maximum permitted capacity is 7.5 billion cubic meters of natural gas per year. A more intense exploration of shale gas is planned in Poland. Overall thirty test wells are expected to be drilled, which is two times more than in the previous year. The commencement of a commercial recovery is also possible. Results of operations and personnel management As the Company did not carry out its main activities during 2013, expenses of the reporting period amounting to LTL 0.9 million are related to the preparation to carry out the supply of natural gas and trade in LNG through the LNG Terminal in Klaipėda. Major expenses incurred in 2013 are related to wages and salaries and related contributions, consultations and other expenses. The summary of the Company s results of operations and operating expenses is presented below: STATEMENT OF COMPREHENSIVE INCOME (LTL thousand) Sales revenue - - Cost of sales - - Gross profit/(loss) - - Operating expenses (919) - Financing activities (1) - Profit/(loss) before income tax (919) - Income tax 96 - Profit/(loss) for the period (823) - OPERATING EXPENSES (LTL thousand) Wages and salaries and related contributions Business trip expenses 52 - Consultancy services Legal services 11 - Rent of premises, utilities, transport 15 - ITT services 16 - Other expenses Total

25 THE COMPANY S ANNUAL REPORT In 2013, the Company's organisational structure was established. The Company has four structural units: (1) trade unit; (2) supply management unit; (3) finance and administration unit and (4) legal unit. All structural units are accountable to the Company's General Manager. The system on a variable remuneration and performance assessment was introduced in the Company in The remuneration of the majority of the Company's employees consists of fixed and variable components. The fixed component of the remuneration is established based on the position held and the competence of the employee. The variable component of the remuneration is paid for measurable performance results, i.e. with respect to each position for the achievement of set objectives. On 14 October 2013, the Company's authorised share capital was increased from LTL 1 million to LTL 3 million through a LTL 2 million new issue of ordinary registered shares. All newly issued shares were acquired by Lietuvos Energija UAB, which became the Company's main controlling shareholder, holding 67% of the Company's shares. All the shares of the Company are ordinary shares with the par value of LTL 1 each and were fully paid as at 31 December 2013 and The Company neither acquired nor disposed own shares during the reporting period. At the end of 2013, the Company's team consisted of nine specialists-economists, managers and lawyers. The distribution of the Company's employees by the position occupied and the average remuneration is presented in the table below. The remuneration indicated includes the fixed and variable remuneration components. Category of employees Average monthly remuneration before tax, in LTL Managers 5,083 Specialists 3,450 Bodies of the Company In accordance with the Company s Articles of Association, the Company s management bodies include as follows: General Meeting of Shareholders; Board; General Manager. The General Meeting of Shareholders is the supreme management body of the Company. The competence of the General Shareholder Meeting, the procedure of its convocation and decision-making are established by laws, other legal acts and the Company s Articles of Association. The Board is a collegial management body of the Company. The competence of the General Shareholder Meeting, the procedure of its convocation and decision-making are established by laws, other legal acts and the Company s Articles of Association. The Company's Board consists of 3 (three) members, one of them is an independent member. At the date of the approval of the annual report the independent member has not been elected. At the reporting date, the Board of LITGAS UAB consisted of the following members: Full name Darius Kašauskas Liudas Liutkevičius Participation of the members of the Board in the management of other companies Finance and Treasury Director of Lietuvos Energija UAB. Generation and Services Director of Lietuvos Energija UAB. Member of the Supervisory Board of Lietuvos Energijos Gamyba AB. Member of the Board of NT Valdos UAB. Member of the Board of Energijos Tiekimas UAB. Member of the Board of of Kauno Energetikos Remontas UAB Director, shareholder of Security Components UAB 25 Commencement date of the term of office Expiry date of the term of office Number of the Company's shares held 22/11/ /11/ /11/ /11/2017 -