JSC "Rīgas Farmaceitiskā Fabrika"

Riga, 212 year 31 may JSC "Rīgas Farmaceitiskā Fabrika" Statement of financial position for year 212. I quart.

CONTENTS Lpp. Data of the enterprise Governing body report Statement of comrehensive income (profit and loss account) 3 4 5 Balance sheet : - assets 6 - liabilities 7 Statement of cash flow Overview of equity capital changes 8 9 Notes to the financial statement 1 Independent auditor's report nav 2

DATA OF THE ENTERPRISE Full name of the enterprise The legal status of a society The state registration in the register of the enterprises The legal address of the enterprise JSC "Rīgas Farmaceitiskā Fabrika" Joint-stock copany registration Nr. 43765, Riga, 1991 year 26 march Duntes street 16/22, Riga, LV-15 The post address of the enterprise Duntes street 16/22, Riga, LV-15 Bank requisites NORDEA BANKA, code NDEA LV 2X Bank account LV 32 NDEA 8 121 297 LV 26 NDEA 8 146 528 Bank requisites SWEDBANK, code HABA LV 22 Bank account LV 51 HABA 551 415 681 Members of the board Councillors Kaspars BĀLIŅŠ Vladimirs KRUŠINSKIS Uģis FREIMANIS Dagmāra ĀBOLTIŅA Jūlija DMITRIJEVA Vladimirs IVANIKINS Nataļja GORBUNOVA Aksana BĒRZIŅA The accounting period from 1.1.212 to 31.3.212 Auditor: SIA ''OIR Birojs'' Qualifiede auditor Kalēju 14a, Olga Ibišova Jūrmala, LV-28 Certificate Nr.131 Licence Nr. 35 3

MANAGEMENT REPORT Rīgas farmaceitiskā fabrika JSC (hereinafter Company ) is located in Riga, 16/22 Duntes street and 6 Maza Ozolu street. The management of the company is realized by the Board of 3 persons. The Company is the most large manufacturer of galena products, therapeutically herbal teas and food supplies in Latvia. The factory was registered in the Register of Enterprises of the Republic of Latvia in 24. The company has certificate of conformity with good manufacturing practice of medicinal products, special permission (license) for manufacturing of pharmaceutical substances and a special permission (license) for the actions with precursors of 1 category. The main types of operations of the company is the manufacturing of medicinal products, food supplies and medical goods. The finished products mainly were distributed in Latvia. At the moment the company manufacturers 149 products, from which 54 are medicinal products, 35 food supplies, 6 herbal teas. Within the report period the company enlarged the assortment with new products. The new aerosol production was successfully started. The work out of the new products syrups and compositions of herbal teas was continued. The registration of the products in Estonia was continued, the registration of the medicinal products in Georgia was started. The contract manufacturing of various products was performed for Latvian, Estonian and Lithuanian companies. The neto turnover of the company in 3 mounth 212 was 716 352 EUR ( 53 455 LVL ), that is more than in 211. The profit of the company in 3 mounth 212 was 38 756 EUR ( 27 238 LVL ) that is less than in 211. The management of joint stock company Rīgas farmaceitiskā fabrika is liable for the preparation of financial report and it is liable, that financial reports are prepared according to requirements of valid legislative acts and provides the true and clear conception about the assets, liabilities, financial situation and profit or losses, as well as for the fact that the management report includes true information. JSC Rīgas farmaceitiskā fabrika interm financial reports are not audited. The management of the company is liable about corresponding provision of bookkeeping system, the maintenance of the Company s assets, as well as for the prevention and detection of the fraud and other irregularities in the Company. The management is also responsible for the accomplishment of Latvian legislation. 212 year 31 may 4

STATMENT OF COMPREHENSIVE INCOME for the period ended 31.3.212 I quart. I quart. I quart. I quart. Net turnover 2 53 455 716 352 48 431 683 592 Cost of sales (prime cost) 3-38 63-439 13-3 975-428 249 Gross profit or loss Sales distribution costs Administration costs Other operating income 4 5 6-14 627-52 938-76 -148 871-75 324-1 81-55 895-73 94 4 789-79 531-14 3 6 814 Other operating expenses 7-8 694-12 37-5 274-7 54 Profit or loss before extraordinary items and tax 194 852 277 249 179 456 255 343 27 833 39 63 49 982 71 118 Corporate income tax (postpone) Other taxes 8-595 -847-595 -847 Profit or loss for the financial period 27 238 38 756 49 387 7 271 EPS k-t,411,585,745,16 Annex from 1. to 19. is an integral part of these financial statements 212 year 31 may 5

BALANCE SHEET for the period ended 31.3.212 ASSETS I quart. I quart. I quart. I quart. Long - term investments Intangible investments Concessions, patents, licenses, trade-marks and similar rights 9 25 868 36 87 37 79 52 759 Advance payments of intangible investments 9 14 199 TOTALLY 25 868 36 87 37 219 52 958 Fixed assets Lands, buildings, constructions and prenial plantations 1 354 624 54 584 4 333 569 623 Technological equipment and machines 1 75 644 17 632 129 518 184 288 Other fixed assets and inventory 1 26 411 37 579 38 94 55 47 Advance payments for fixed assets TOTALLY 456 679 649 796 568 791 89 317 Long - term investments TOTALLY 482 547 686 63 66 1 862 275 Current assets Stocks Row materials, direct materials and auxiliary materials 11 246 119 35 196 269 338 383 233 Unfinished products Complete products and goods for sale 12 13 32 881 37 456 46 785 53 295 3 852 85 871 5 481 122 183 Advance payments for goods 614 874 7 787 11 8 Work animals and productive animals 14 15 213 15 213 TOTALLY 317 22 451 363 366 998 522 191 Debtors Customers and client debts Other debts Accured income 15 16 17 81 149 46 44 12 514 115 465 65 515 17 86 6 582 69 196 12 622 9 365 98 457 17 959 TOTALLY 139 77 198 785 88 4 125 782 Cash assets 18 1 543 2 195 2 372 3 375 Current assets TOTALLY 458 47 652 344 457 77 651 348 BALANCE 6 941 17 1 338 947 1 63 78 1 513 623

BALANCE SHEET for the period ended 31.3.212 LIABILITIES I quart. I quart. I quart. I quart. Equity capital Stock or share capital (equity capital) 19 663 943 364 663 943 364 Retained profit: a) Retained profit of previous years -58 41-83 97-67 3-95 375 TOTALLY b) Retained profit of the year of accountant 2 Stockpiles Other stockpiles 21 2 938 29 792 2 657 29 392 TOTALLY Creditors Long - term debts Tax on profit (pustpone) or loss for the financial period 25 TOTALLY 27 238 38 756 49 387 7 271 631 837 899 23 645 357 918 26 2 938 29 792 2 657 29 392 13 355 19 2 28 331 4 311 13 355 19 2 28 331 4 311 Short - term debts Debts to suppliers and contractors Tax and social security payments Other creditors 22 23 24 228 415 31 147 12 485 325 5 44 318 17 765 151 993 18 214 12 679 216 267 25 916 18 41 Accrued liabilities 26 2 84 4 41 186 549 265 435 TOTALLY 274 887 391 129 369 435 525 659 Creditors BALANCE TOTALLY 288 242 41 131 397 766 565 97 941 17 1 338 947 1 63 78 1 513 623 Annex from 1. to 19. is an integral part of these financial statements 212 year 31 may 7

STATEMENT OF CASH FLOW for the period ended 31.3.212 (indirect method) CASH FLOW from operating activities Profit or loss before extraordinary items and tax I quart. I quart. I quart. I quart. 27 833 39 63 49 982 71 118 Corrections : depreciation of fixed assets and intangible investments (+) accumulation for unused vacation (+) 3 8 43 824 35 15 49 822 Profit or loss before working capital and working capital correction influence 58 633 83 427 84 997 12 94 Corrections : debts of customers and subscribers provisions others debtors 42 539 6 528 15 1 149 544 15 95 21 478 2 212 28 759-18 571-154 483-27 837-295 725 Net cash provided by operating activities 7 696 1 95 2 472 3 517 the taxes deducted from net profit (property tax) -595-847 -595-847 Cash flow from operating activities 7 11 1 14 1 877 2 671 Investing activities fixed assets purchase costs income from sale of fixed assets -6 444-9 169-2 982-4 243 Cash provided by investing activities -6 444-9 169-2 982-4 243 Net increase (decrease) in cash 657 935-1 15-1 572 Cash at the beginning of the year 886 1 261 3 477 4 947 Cash at the end of the year 1 543 2 195 2 372 3 375 Annex from 1. to 19. is an integral part of these financial statements 8 212 year 31 may

OVERWIEW of EQUITY CAPITAL CHANGES for the period ended 31.3.212 Share capital Reserves Retained profit of Retained profit of the Equity capital (total) previous years year of accountant LVL EUR 31.12.21 663 943 364-216 484-38 29 149 454 212 654 595 97 847 989 21 year profit transferred to 149 454 212 654-149 454-212 654 - - retained earnings Retained profit of the year of accountant Relief for losses from reserves 8 628 12 277 8 628-12 277-31.12.211 663 943 364 - - -67 3-95 375 8 628 12 277 64 598 86 265 211 year profit transferred to 8 628 12 277-8 628-12 277 - - retained earnings Retained profit of the year of accountant 31.3.212 663 943 364 - - -58 41-83 97 27 238 27 238 38 756 38 756 27 238 631 837 38 756 899 23 Annex from 1. līdz 1. to 19. is an integral part of these financial statements 212 year 31 may 9

AS "Rīgas Farmaceitiskā Fabrika" year 212 FINANCIAL REPORT (1) STATEMENT OF ACCOUNTING POLICIES - GENERAL PRINCIPLES Basis of preparation The Annual Report is prepared in accordance with Latvian law "On Accounting" and "Annual reports". The income statement is prepared in accordance with the turnover method. The cash flow statement prepared using the indirect method. Net sales Net sales represent the revenues of the company's core business, the sale of products and services, net of trade discount and other discounts granted, as well as value added tax and other taxes directly related to the sale. Proceeds from the sale of goods is recognized when the buyer s accepted the goods, according to delivery terms. During the reporting period The reporting period is 3 months of 1.1.212 to 31.3.212. Currency and foreign currency translation These financial statements are expressed in the Latvian national currency - Lats (LVL) and euro (EUR). All monetary assets and liabilities are translated into Latvian lats at the exchange rate at the period end. 31.3.212 31.12.211 USD - - EUR,7,7 Foreign exchange rate fluctuations on profit or loss is reflected in the profit and loss account. Long-term and short-term items Long-term items of an amount reported by the receipt, payment, or write-off shall be the later of one year after the year end. The amounts received, paid or written off during the reported short-term positions. Non-current assets and depreciation recognition Balance sheet of all fixed assets and intangible assets are stated at cost less depreciation rates. Depreciation is calculated on straight-line methods, choosing on the basis of the following rates: Intangible assets: license 2 % other intangible assets 2 % Fixed Assets: Buildings and structures 5-1 % Iekārtas un mašīnas % Язык оригинала: английский Введите текст или адрес веб-сайта либо переведите документ. Отмена латышскийанглийскийрусскийalpha Equipment and machinery 2 Other fixed assets 2-35 % Measurement of inventories Reserves are estimated using FIFO method. Inventory balances checked on the inventory. 1

AS "Rīgas Farmaceitiskā Fabrika" year 212 FINANCIAL REPORT Receivables Trade receivables are shown net of. Savings Provisions are intended to cover certain types of obligations, relating to the reporting year or previous years and Annual Reports of the anticipated or known, but the amount or specific commitment to the creation or the date of recovery is uncertain. Provision for vacation pay Amount of the provision is determined by multiplying the average employee salary of one day to the year-end accrued but unused vacation days. Accrued liabilities Clearly aware of the settlement amount payable for the current year goods or services received if the balance sheet date has not yet received the corresponding payment document in accordance with the supply, sale or contract business conditions or other reasons, recognized as accruals for the period. Corporate income tax Corporate income tax costs are included in the financial statements in accordance with Latvian tax legislation of. For the reporting period the estimated tax is calculated under the Law "On Corporate Income Tax " 'claims in determining taxable income, and applying the statutory tax rate of 15%. 11

(2) Net Sales Type of activity Manufacture of drugs Raw materials and distribution Provision of services 489 174 696 32 466 465 663 72 7 53 1 36 6 346 9 3 7 228 1 285 7 62 1 842 53 455 716 352 48 431 683 592 Net sales by geographical markets State Latvia Lithuania Estonia 479 21 8 625 15 62 681 854 12 272 22 225 471 828 8 63 671 351 12 241 Other 53 455 716 352 48 431 683 592 (3) Cost of sales Cost of materials Staff costs State social security contributions Depreciation of fixed assets and intangible assets depreciation Depreciation of current assets 179 227 28 85 6 772 3 8 255 17 4 986 9 636 43 824 184 21 28 636 6 897 35 15 2 262 94 4 745 9 814 49 822 28 Maintenance costs Transport costs Other 2 42 2 96 36 96 51 36 41 36 58 389 6 741 9 592 1 748 2 487 18 12 25 782 3 422 4 869 38 63 439 13 3 975 428 249 (4) Sales expenses Staff costs State social security contributions Advertising expenses Transport costs Other 12 46 95 65 587 33 841 48 151 1 76 15 233 8 184 11 645 43 22 61 497 7 958 11 323 1 591 2 264 2 84 4 41 3 15 4 29 3 72 4 371 14 627 148 871 55 895 79 531

(5) Administration costs Staff costs State social security contributions Legal and accounting services 11 947 2 879 6 644 16 999 4 96 9 454 11 123 2 611 495 15 827 3 715 74 Other 31 468 44 775 58 865 83 757 (6) Other operating income 52 938 75 324 73 94 14 3 The difference of exchange rate changes and currency sales -76-1 81 544 774 Received a penalty 3 87 4 392 Proceeds from sale of fixed assets Other 1 158 1 648-76 (7) Other operating expenses -1 81 4 789 6 814 Expenses not related to economic activity The difference of exchange rate changes and currency sales 8 67 12 247 3 91 1 223 5 551 1 74 Penalties Gifts and benefits 15 213 Other 87 124 8 694 12 37 5 274 7 54 (8) Other taxes 13 212. 212. 211. 211 Real estates tax 595 847 595 847 595 847 595 847

(9) Intangible assets Licenses and patents Advance payment for intangible assets intangible assets LVL EUR Historical cost as of 31.12.211 99 245 141 213 99 245 141 213 Additions 13 18 13 18 Disposals 31.3.212 99 258 141 231 99 258 141 231 Accumulated depreciation before 31.12.211 7 541 1 371 7 541 1 371 Accumulated depreciation 2 849 4 54 2 849 4 54 31.3.212 73 39 14 425 73 39 14 425 Net book value 31.12.211 28 74 4 842 28 74 4 842 Net book value 31.3.212 25 868 36 87 25 868 36 87 14

(1) Fixed assets Land and buildings Equipment Other fixed assets Advance payment for Fixed assets total fixed assets LVL EUR Historical cost as of 31.12.211 649 72 923 546 519 276 738 863 239 774 341 168 - - 1 48 122 2 3 577 Additions 6 432 9 152 6 432 9 152 Disposals 31.3.212 649 72 923 546 519 276 738 863 246 26 35 32 1 414 554 2 12 729 Accumulated depreciation before 31.12.211 283 16 42 9 431 15 613 47 215 657 36 852 - - 929 922 1 323 16 Accumulated depreciation 11 288 16 61 12 527 17 824 4 138 5 888 27 953 39 774 Excluded on disposal 31.3.212 294 448 418 962 443 632 631 231 219 795 312 74 957 875 1 362 933 Net book value 31.12.211 365 912 52 646 88 171 125 456 24 117 34 315 478 2 68 417 Net book value 31.3.212 354 624 54 584 75 644 17 632 26 411 37 579 456 679 649 796 15

(11) Row materials, direct materials and auxiliary materials Materials Consumables - glass containers Consumables - plastic and metal packages Printed materials Other 86 142 11 754 19 689 29 534 122 569 157 589 28 15 42 23 94 268 121 22 21 547 32 321 134 131 172 455 3 659 45 989 (12) Unfinished products 246 119 35 196 269 338 383 233 The packing station neizfasēta products (quarantine area) 27 825 39 591 3 274 4 658 Production units of semi-finished products segment 5 56 7 194 578 822 (13) Complete products and goods for sale The company's stock of finished goods in stock (14) Work animals and productive animals 32 881 46 785 3 852 5 481 37 456 53 295 85 871 122 183 37 456 53 295 85 871 122 183 Guard dogs 15 213 15 213 15 213 15 213 (15) Customers and client debts Trade receivables have a carrying amount Book value 16 By currencies : 212. 211. currency LVL EUR currency LVL EUR LVL 81 149 81 149 115 465 6 582 6 582 9 365 EUR Other 81 149 115 465 6 582 9 365 81 149 115 465 6 582 9 365 81 149 115 465 6 582 9 365

(16) Other debts Tax receivables together Operatīvā līzinga neamortizētās daļas 44 971 1 73 63 988 1 527 68 584 612 97 586 871 of settlement balances 46 44 65 515 69 196 98 457 (17) Accured income Property Insurance Vehicle Insurance Employee Health Insurance 3 64 5 179 3 274 4 658 2 13 2 992 2 492 3 546 6 198 8 819 6 32 8 993 Magazine subscription 274 39 284 44 Other 299 425 252 359 12 514 17 86 12 622 17 959 (18) Cash Assets and EUR currency according to the 31.12. By currencies : 212. 211. currency LVL EUR currency LVL EUR LVL 1 543 1 543 2 195 2 372 2 372 3 375 EUR Other 1 543 2 195 2 372 3 375 17

(19) Share capital 663 LVL, 943 364 EUR consisting of 66 ordinary shares with voting rights and 3 common shares without voting rights Each share is LVL 1,EUR 1,4229 (2) Retained earnings For 211. the reporting year, the profits up Other provisions (21) Provision for unused vacations LVL EUR 27 238 38 756 2 938 29 792 2 657 29 392 2 938 29 792 2 657 29 392 (25) Tax on profit (pustpone) or loss for the financial period 13 355 19 2 28 331 4 311 13 355 19 2 28 331 4 311 (22) Trade and other payables Current portion of Trade and other payables the carrying amount of 228 415 325 5 151 993 216 267 228 415 325 5 151 993 216 267 Current portion of 212. 211. By currencies : currency LVL EUR currency LVL EUR LVL 173 186 173 186 246 421 11 14 11 14 156 664 EUR 55 229 55 229 78 584 41 889 41 889 59 63 Other 228 415 325 5 151 993 216 267 18

(23) Current portion of Corporate income tax Value-added tax 11 952 17 6 1 29 14 27 9 723 13 835 State social security contributions Personal income tax 5 974 8 5 5 574 7 931 Business risk charge 16 23 15 21 Natural resource tax Nekustamā īpašuma nodoklis 3 176 4 519 2 92 4 129 31 147 44 318 18 214 25 916 (24) Current portion of Wage debt 12 485 17 765 12 679 18 41 12 485 17 765 12 679 18 41 (26) Accrued liabilities Accrued discounts will be 186 549 265 435 Other 2 84 4 41 2 84 4 41 186 549 265 435 (27) Number of employees 212. 211. The average number of persons employed by the company 64 62 (28) News about events after the balance sheet date In the period since the last days before the reporting date is no significant events that could materially affect the results of the annual report. 19