ANNUAL REPORT 2020 by AS_UPB

2020

FOTO: dmitry.photo

VALLE VIEW, OFFICE BUILDINGS OSLO, NORWAY

2020

ANNUAL REPORT

CONTENTS INFORMATION ON THE GROUP

MANAGEMENT’S REPORT

UPB IN 2020

PROJECTS, PRODUCTS AND SERVICES

| 12

SUMMARY CONSOLIDATED FINANCIAL STATEMENTS PROFIT AND LOSS STATEMENT BALANCE SHEET STATEMENT OF CASH FLOWS STATEMENT OF CHANGES TO THE SHAREHOLDERS’ EQUITY NOTE TO THE FINANCIAL STATEMENTS INDEPENDENT AUDITORS’ REPORT

| 24 | 25 | 27 | 28 | 29 | 30

4 | INFORMATION ON THE GROUP

UPB ANNUAL REPORT 2020

INFORMATION ON THE GROUP NAME OF THE PARENT COMPANY

UPB

LEGAL STATUS OF THE PARENT COMPANY

Joint Stock Company

NUMBER, PLACE AND DATE OF REGISTRATION OF THE PARENT COMPANY

42103000187, Liepaja, 26 April 1991

PLACE OF OPERATION OF THE EXECUTIVE BODY OF THE GROUP PARENT COMPANY

Dzintaru Street 17, Liepaja, LV-3401, Latvia

MEMBERS OF THE BOARD OF THE GROUP PARENT COMPANY AND THEIR POSITIONS

Dainis Berzins, Chairman of the Board Ugis Grinbergs, Member of the Board Nora Kalna, Member of the Board

MEMBERS OF THE COUNCIL OF THE GROUP PARENT COMPANY AND THEIR POSITIONS

Uldis Pilens, Chairman of the Council Madara More, Deputy Chairman of the Council from 20 March 2020 Normunds Horsts, Member of the Council Oskars Mors, Deputy Chairman of the Council until 20 March 2020

REPORTING YEAR

01.01.2020 - 31.12.2020

AUDITORS

KPMG Baltics JSC Vesetas Street 7, Riga, LV-1013 Licence No.55

INFORMATION ON GROUP COMPANIES

AILE grupa, LTD Reg. No. 42103034060 Legal address: Pulvera Street 28, Liepaja, LV-3405, Latvia UPB group: 100.00% ALTO 4.0, LTD Reg. No. 42103083225 Legal address: Maskavas Street 250, Riga, LV-1063, Latvia UPB group: 100.00% Betona Pētījumu Centrs, LTD Reg. No. 50003479061 Legal address: Maskavas Street 246, Riga, LV-1063, Latvia Indirect UPB group through MB Betons, JSC: 93.50% Būvmehanizācija, LTD Reg. No. 42103005199 Legal address: Martina Street 18, Liepaja, LV-3401, Latvia UPB group: 100.00% Daugavpils Dzelzsbetons, LTD Reg. No. 41503019513 Legal address: Rupniecibas Street 1a, Daugavpils, LV-5420, Latvia Indirect UPB group through MB Betons, JSC: 93.50% Dzelzsbetons MB, LTD Reg. No. 42103029801 Legal address: Cukura Street 34, Liepaja, LV-3414, Latvia Indirect UPB group through MB Betons, JSC: 93.50% ENNA, LTD Reg. No. 52103030501 Legal address: Rietumkrasta Street 3-18, Liepaja, LV-3401, Latvia UPB group: 100.00%

INFORMATION ON THE GROUP | 5

UPB ANNUAL REPORT 2020

RK Metāls, LTD Reg. No. 42103009504 Legal address: Lauktehnikas Street 12, Grobina, LV-3430, Latvia UPB group: 100.00% Stiklu Centrs, LTD Reg. No. 40003491838 Legal address: Pulvera Street 20, Liepaja, LV-3405, Latvia Indirect UPB group through AILE grupa, LTD: 100.00% Transportbetons MB, LTD Reg. No. 48503013571 Legal address: Graudu Street 4, Jelgava, LV-3001, Latvia Indirect UPB group through MB Betons, JSC: 93.50% UPB Energy, LTD Reg. No. 42103028844 Legal address: Dzintaru Street 19, Liepaja, LV-3401 UPB group: 100.00% UPB Nams, LTD Reg. No. 42103041363 Legal address: Dzintaru Street 19, Liepaja, LV-3400, Latvia UPB group: 100% UPB Projekti, LTD Reg. No. 41203030418 Legal address: Dzintaru Street 17, Liepaja, LV-3401, Latvia UPB group: 100.00%

Grotta, LTD Reg. No. 44103043339 Legal address: Maskavas Street 246, Riga, LV-1063, Latvia UPB group: 100.00% - as of 15 April 2020 H&L STUDIJA, LTD Reg. No. 42103025231 Legal address: Pulvera Street 28, Liepaja, LV-3405, Latvia UPB group: 100.00% HF Technology, LTD Reg. No. 52103028831 Legal address: Pulvera Street 28, Liepaja, LV-3405, Latvia UPB group: 100.00% from 30 April 2019 Inerto Materiālu Serviss, LTD Reg. No. 42103025829 Legal address: Dzintaru Street 19, Liepaja, LV-3401, Latvia Indirect UPB group through MB Betons, JSC: 93.50% Inženieru birojs “Būve un Forma”, LTD Reg. No. 40003511937 Legal address: Maskavas Street 246, Riga, LV-1004, Latvia UPB group: 100.00% Jelgavas MB, LTD Reg. No. 43603014065 Legal address: Graudu Street 4, Jelgava, LV-3001, Latvia Indirect UPB group through MB Betons, JSC: 93.50% MB Betons, JSC Reg. No. 42103019343 Legal address: Dzintaru Street 17, Liepaja, LV-3401, Latvia UPB group: 93.50% MBD, JSC Reg. No. 4000344690 Legal address: Rupniecibas Street 1a, Daugavpils, LV-5420, Latvia Indirect UPB group through MB Betons, JSC: 93.50%

UPB Engineers, LTD Reg. No. 304828700 Legal address: Savanoriu a. 2A, Panevežys, LT 35201, Lithuania UPB group: 100.00% UPB Sweden, LTD Reg. No. 556757-7688 Legal address: c/o Advokatfirman Delphi, Master Samuelsgatan 17 Box 1432, 111 84, Stockholm, Sweden UPB group: 100.00% UPB AS GmbH Reg. No. CH-092.4.017.548-3 Legal address: Schlossgasse 4, Münchenstein, CH-4142, Switzerland UPB group: 100.00% UPB AS, LTD Reg. No. 9086239 Legal address: 4th floor Imperial House 8 Kean Street, London, WC2B 4AS, Great Britain UPB group: 100% UPB Engineering, LTD Reg. No. 191829367 Legal address: ул. Гинтовта 1, кабинеm 603 (БЦ А-100), Минск, 220125, Belarus

UPB group: 100.00%

6 | MANAGEMENT’S REPORT

UPB ANNUAL REPORT 2020

MANAGEMENT’S REPORT

The joint-stock company UPB and its subsidiaries together form an industrial group whose business is based on the design and construction of complex buildings and technological facilities, including consultations during the early stages of the project, design, manufacturing and assembly of building structures and facades. The UPB group consists of glass facade, steel and reinforced concrete structure production units, a cogeneration module production unit, a mechanical engineering production unit, ready-mix concrete production units throughout Latvia, engineering and construction companies in Latvia, as well as an IT solution company. UPB group ensures its operations with companies and their representative offices in nine countries – Latvia, Sweden, Norway, Denmark, Lithuania, Belarus, Great Britain, Switzerland and Azerbaijan – employing nearly 2000 people in total. The consolidated turnover of UPB Group reached 237 million euros in 2020, which is the highest turnover historically. The reporting year has been successful – with an increase in both the production volume and complexity of construction materials, as well as the number and scope of construction projects in local and foreign markets. The proportion of volumes sold in Latvia and export markets is 35 % vs. 65 %. Main export countries: Sweden, Norway, United Kingdom, Denmark and Germany. Last year, UPB group companies paid more than 26 million euros in taxes in total. During the reporting year, UPB continued to develop its portfolio in the construction of high-rise buildings, and began to build the frame for the tallest building in the history of the company: CityGate in Göteborg, which will reach a height of 36 storeys. Production and assembly of the frame for the residential complex Strato Södermalm has also been finished; one of the buildings is 19 storeys high. This project also stands out due to its white concrete façade, which has required thorough work during all stages from designing to logistics and assembly. UPB group export department has further developed the company’s “3C concept”, which provides a package of combined glass, steel and concrete structures. One of the most important projects of combined glass, steel and concrete structures was the New Ångström, the largest

construction project in the history of the Swedish Uppsala University, where UPB has designed, manufactured and assembled the frame and façade for one of the future buildings for studies. While one of the most significant façade objects was the Platinan office building in Göteborg – the largest façade implemented by UPB, covering an area of approximately 25,000 m2. UPB also further explored the British market, continuing construction works for the Bloom Clerkenwell facade and promoting the Group’s services to potential future clients. In the reporting year, growth can be seen for design and construction services in the local market, too. In 2020, the largest constructed object in the Latvian market was completed: the shopping centre SĀGA with an area of 57,000 m2. SĀGA is a UPB Design&Build project, and more than 10 companies of the Group took part in its implementation, demonstrating that UPB can effectively implement complicated projects within the framework of the Group. Construction company Grotta started construction for Riga Stradiņš University’s new building for pharmacy studies and science. By the end of 2020, construction of the largest heat accumulation system in the Baltics was completed at the TEC-2 plant of the company AS Latvenergo. It is one of the largest and most effective solutions for improving energy efficiency in the country. A significant increase in turnover has also been reached by UPB group company RK Metāls mechanical engineering product line. The results were achieved by increasing the complexity of implemented projects and continuous work in new markets, such as United Kingdom, France, Turkey, the Czech Republic, etc. In total, more than 8 million euros have been invested in the development of UPB and its subsidiaries during the reporting year. Construction of a new plant for prefabricated concrete structures was begun in Liepaja. It is planned to build 4900 m2 of production premises and 2900 m2 of warehouse premises for finished products, and to modernise the existing concrete production facility. The new facility will offer 50 new jobs, and the start of operations has been set for the autumn of 2021.

MANAGEMENT’S REPORT | 7

UPB ANNUAL REPORT 2020

Another company of UPB Group to expand its production possibilities is Transportbetons MB. A new ready-mixed concrete facility has started operations in Liepaja, and a new mobile ready-mix concrete facility has been purchased for efficient installation directly in the territory of a construction site. More than 500 thousand euros has been invested in it. A significant investment was also made into the equipment of Stiklu centrs, including the new glass unit production line that allows the expansion of manufacturing possibilities. The Laboratory of Concrete Research Centre in Riga began its operations as well, working on the research of innovative materials such as ultra-high performance concrete, too.

No events that could significantly affect the results of the reporting year have occurred during the time period from the end of the reporting year to the date of signing of this report. The consolidated turnover is estimated to remain constant in 2021, however, the rapid increase in raw material prices in 2020 and 2021 is expected to have an effect on the results. The shareholders shall make a decision on the use of profit of 2020.

Both, during the reporting year, as well as in the future, UPB will dedicate significant resources to the raising of construction and manufacturing process efficiency to ensure that the maximum number of complicated processes are transferred from construction sites to the manufacturing plants. The company also invests in the digitalisation of different processes, development of green technology and new products. To ensure safe work conditions of our personnel under the influence of the pandemic, significant safety and precautionary measures were introduced at the production plants, construction sites and offices of UPB group, as well as special attention is paid to the safe rotation of personnel leaving and returning from work abroad.

Dainis Berzins

Chairman of the UPB Management Board

17 August 2021

Nora Kalna

Member of the Board

Ugis Grinbergs

Member of the Board

8 | UPB IN 2020

UPB ANNUAL REPORT 2020

UPB IN 2020 FINANCES

2016

SWEDEN

NORWAY

USA

CANADA

IRELAND

CZECH REPUBLIC

TURKEY

2017

2018

2019

2020

DENMARK

GERMANY

FRANCE

FINLAND

ICELAND

SLOVENIA

ESTONIA

LITHUANIA

UPB ANNUAL REPORT 2020

PRODUCTS AND MAIN SERVICES

UPB IN 2020 | 9

WE INVEST IN THE GROWTH OF THE COMPANY

MB BETONS READY-MIX CONCRETE AND PREFABRICATED CONCRETE PLANTS at Liepaja, Cukura street

2020

ANNUAL REPORT

PROJECTS, PRODUCTS AND SERVICES

| 12

25000m2 THE LARGEST FACADE PROJECT IN OUR HISTORY PLATINAN, OFFICE BUILDING GOTHENBURG, SWEDEN

PROJECTS, PRODUCTS AND SERVICES | 13

UPB ANNUAL REPORT 2020

MAIN PROJECTS OF 2020 COMPLEX SOLUTIONS

Office building CITYGATE Gothenburg, Sweden STEEL

Office building PLATINAN Gothenburg, Sweden GLASS

CONCRETE

Office building with retail spaces BLOOM CLERKENWELL London, United Kingdom

GLASS

Office building POOLEN Solna, Sweden STEEL

GLASS

Public building NEW ANGSTROM Uppsala, Sweden

GLASS

Office building GARDA VESTA Gothenburg, Sweden

STEEL

Residential building STRATO SÖDERMALM Stockholm, Sweden CONCRETE

Recreation and shopping center SAGA Riga, Latvia CONCRETE

D&B

DESIGN & BUILD

GENERAL CONSTRUCTION

CONCRETE

Pharmaceutical studies and science complex RĪGA STRADIŅŠ UNIVERSITY Riga, Latvia GENERAL CONSTRUCTION

14 | PROJECTS, PRODUCTS AND SERVICES

UPB ANNUAL REPORT 2020

SUSTAINABLE CONSTRUCTION

PREFABRICATED CONCRETE

UPB has high competence in the field of sustainable and energy efficient construction. We represent one of the largest construction companies in the Baltic states, and we care about the impact we leave both on the environment and the parties involved in the process.

HYLLIE TERRASS, OFFICE BUILDING SKANSKA, MALMO, SWEDEN

STEEL STRUCTURES

UPB ENVIRONMENTAL RESPONSIBILITY ENERGY EFFICIENCY and CO2 REDUCTION

RECYCLING AND REUSE OF MATERIALS

• Environmental declarations of products • Energy-efficient solutions during the engineering stage • Electrical power from renewable energy sources • Cogeneration station that provides heating and electricity for the production unit • Biofuel additive for transport vehicles • Implementation of the energy efficiency programme in accordance with the results of the energy audit (EN 16247)

• Sorting and recycling of waste • Reuse of packaging • Products from recycled raw materials – use of recycled steel in production • More environmentally friendly solutions for existing prefabricated concrete production plant - coming soon! • New prefabricated concrete production plant with zero–waste technology – in construction!

EFFICIENT USE OF RESOURCES AND REDUCTION OF ENVIRONMENTAL FOOTPRINT

• Process digitalisation and automation • Systematic maintenance of equipment and vehicle fleet • Use of modernised, environment-friendly ferries for transport • Trucks: Euro V and higher

• Product lifecycle analysis using One Click LCA software • Material optimisation already in the engineering stage • New, more environmentally friendly equipment at production plants

RESPONSIBLE OPERATION PRINCIPLES IN FULL ECONOMIC CYCLE

EFFORTS TO REDUCE THE CONSUMPTION OF RESOURCES AND IMPLEMENT ENVIRONMENTALLY FRIENDLY SOLUTIONS

*Provisional results are obtained using a pre-verified tool for embodied CO2 calculations. These are compared with UPB’s environmental product declarations from 2015 (calculations for modules A1-A3 regarding the manufacturing process).

WE BUILD TO SUIT YOU SUSTAINABLE CONCRETE OFFSITE CONSTRUCTION WIDE VARIETY OF DESIGN AND COLOR OPTIONS

HYLLIE TERRASS, OFFICE BUILDING SKANSKA, MALMO, SWEDEN

UPB ANNUAL REPORT 2020

16 | PROJECTS, PRODUCTS AND SERVICES

FOTO: ©felixgerlach_fotograf

3 CONSTRUCTION CONCEPT

MORE THAN

WINNER

PROJECTS

THE MOST BEAUTIFUL GLASS BUILDING IN SWEDEN

REGIONENS HUS, OFFICE BUILDING GOTHENBURG, SWEDEN

SORKEDALSVEIEN, RESIDENTIAL AND OFFICE BUILDING, OSLO, NORWAY

BLENDA, OFFICE BUILDING GOTHENBURG, SWEDEN

CAMPUS ALBANO, STUDENT CAMPUS STOCKHOLM, SWEDEN

POOLEN, OFFICE BUILDING SOLNA, SWEDEN

ST. ERIK EYE HOSPITAL, MEDICAL INSTITUTION SOLNA, SWEDEN

FARGSKRAPPAN, PUBLIC BUILDING, SOLLENTUNA, SWEDEN

NEW ANGSTROM, PUBLIC BUILDING UPPSALA, SWEDEN

KRONAN, OFFICE BUILDING STOCKHOLM, SWEDEN

NATRIUM, UNIVERSITY BUILDING GOTHENBURG, SWEDEN

DRAKEN, HOTEL GOTHENBURG, SWEDEN

KARLBERG, OFFICE BUILDING STOCKHOLM, SWEDEN

FORUM MEDICUM, HEALTH SCIENCE CENTER LUND, SWEDEN

UPB ANNUAL REPORT 2020

PROJECTS, PRODUCTS AND SERVICES | 17

DESIGN&BUILD

DESIGN AND CONSTRUCTION UNDER A SINGLE CONTRACT SĀGA, RECREATION AND SHOPPING CENTRE RIGA, LATVIA / DEVELOPER VPH

IMPROVED SITE SAFETY

LIEPAJA OLYMPIC CENTRE TENNIS HALL LIEPAJA, LATVIA

HAMPTON BY HILTON, HOTEL RIGA AIRPORT, LATVIA

18 | PROJECTS, PRODUCTS AND SERVICES

FOTO: White Arkitekter

GARDA VESTA, OFFICE BUILDING GOTHENBURG, SWEDEN

UPB ANNUAL REPORT 2020

SPECIALISATION IN HIGH-RISE BUILDINGS SPECIALIZATION MORE IN HIGH-RISE PROJECTS THAN BUILDINGS

GRADIENTEN, HOTEL LINKÖPING, SWEDEN

MORE THAN

PROJECTS

PROJECTS, PRODUCTS AND SERVICES | 19

UPB ANNUAL REPORT 2020

3C SOLUTION

2016

STOREYS

FACADE SOLUTION

STOREYS

STRUCTURAL FRAME SOLUTION

STOREYS

CITYGATE, OFFICE BUILDING GOTHENBURG, SWEDEN

STOREYS

DRAKEN, HOTEL, GOTHENBURG, SWEDEN

CITYGATE, OFFICE BUILDING GOTHENBURG, SWEDEN

33 STOCKHOLM NEW, OFFICE BUILDING STOCKHOLM, SWEDEN

STOREYS

STOCKHOLM NEW, OFFICE BUILDING STOCKHOLM, SWEDEN

GARDA VESTA, OFFICE BUILDING GOTHENBURG, SWEDEN

MUNKSJÖSTADEN, OFFICE BUILDING JÖNKÖPING, SWEDEN

DRAKEN, OFFICE BUILDING GOTHENBURG, SWEDEN

3C SOLUTION

STRUCTURAL FRAME SOLUTION

2021

20 | PROJECTS, PRODUCTS AND SERVICES

FIRST FACADE PROJECT IN

CENTRAL LONDON

BLOOM CLERKENWELL, OFFICE BUILDING WITH RETAIL SPACES LONDON, UNITED KINGDOM

UPB ANNUAL REPORT 2020

GLASS

EXPANDING PRODUCTION CAPABILITIES

ALUMINIUM & WOOD STRUCTURES ALUMINIUM GLAZED STRUCTURES

NEW GLASS UNIT PRODUCTION LINE

UNITISED FACADES FACADES WINDOWS DOORS GLASS ROOFS BESPOKE GLASS SOLUTIONS

CARLSBERG, HEAD OFFICE COPENHAGEN, DENMARK

STEEL STEEL BUILDING STRUCTURES CITYGATE, OFFICE BUILDING, GOTHENBURG, SWEDEN

NON-STANDARD HANGARS CONSTRUCTION COMPONENTS EXPLOSION-RESISTANT CONTAINERS AND TANKS

GREEN HAUS, OFFICE BUILDING HELSINGBORG, SWEDEN

ADVANCED PREFABRICATED CONCRETE PRODUCTION FACILITY

CONCRETE REINFORCED CONCRETE FOR BUILDINGS HOLLOW CORE SLABS WALLS BEAMS, COLUMNS AND STAIRS BUILDING FOUNDATION ELEMENTS

NEW READY MIXED CONCRETE PLANT

READY MIXED CONCRETE IN LATVIA AND SWEDEN WIDE RANGE OF RAL COLORS

ZUZEUM ART CENTER RIGA, LATVIA

AGGREGATES FOR CONCRETE CONCRETE LABORATORY CONCRETE RESEARCH AND DEVELOPMENT

BIOMASS BOILER HOUSE VANGAZI, LATVIA

ENERGY TURNKEY ENERGY PROJECTS COGENERATION MODULES FOR NATURAL GAS BIOGAS SYNTHETIC GAS OIL GAS

THE LARGEST HEAT STORAGE UNIT IN THE BALTICS TANK VOLUME 178000 m3 HEIGHT 47.8 m HEAT STORAGE DESIGN CAPACITY 550 MWth

BIOMASS BOILER HOUSE VANGAZI, LATVIA

TRIGENERATION SOLUTIONS

COGENERATION MODULE FOR A HOSPITAL BASEL, SWITZERLAND

BEACH CLEANER LATVIA

DESIGN AND CONSTRUCTION OF HEAT STORAGE SYSTEM, LATVENERGO TEC-2, ACONE, LATVIA

MACHINERY DESIGN AND ENGINEERING FULL CYCLE PRODUCTION

GLASS FIBER BLOWING WOOL FORMING SECTION, CZECH REPUBLIC

TURNTABLE FOR CONCRETE ELEMENTS FRANCE

EQUIPMENT AND SPECIAL MACHINES CONVEYOR SYSTEMS SERIAL PRODUCTION

FRAME HANDLING UNIT FOR WOOD NURSERY ESTONIA

A full-cycle enterprise process management system designed for the construction industry

INDUSTRY 4.0

4.0

un i

op e

T d b y AL

Production machinery integration with other systems

CUSTOM DEVELOPMENT

PRODUCTION MACHINERY INTEGRATION

e applicati qu

s on

ALTO ERP PLUGINS FOR TEKLA STRUCTURES

Research and development of state-of-the-art software solutions for the construction industry

• Plugins • Macros • Applications • Integration with other software

2020

ANNUAL REPORT

SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

| 24

24 | CONSOLIDATED STATEMENT OF PROFIT AND LOSS

UPB ANNUAL REPORT 2020

CONSOLIDATED STATEMENT OF PROFIT AND LOSS for the year ended 31 December 2020 2020 (EUR)

2019 (EUR)

237 550 782

213 068 518

(210 945 265)

(187 042 271)

Gross proﬁt

26 605 517

26 026 247

Selling expenses

(2 802 928)

(2 604 542)

Administrative expenses

(9 514 792)

(8 560 956)

708 022

466 237

(520 342)

(690 998)

18 148

(512 499)

179 066

76 072

(230 223)

(275 396)

14 442 468

13 924 165

(940 647)

(384 015)

13 501 821

13 540 150

(197 607)

(129 642)

13 304 214

13 410 508

Net sales Cost of goods sold, cost of services

Other operating income Other operating expenses Income/ (Expenses) from disposal of long-term financial investments Interest and similar income Interest and similar expenses Profit before corporate income tax Corporate income tax Profit for the reporting year Minority interest Profit after minority interest

CONSOLIDATED STATEMENT OF BALANCE SHEET | 25

UPB ANNUAL REPORT 2020

CONSOLIDATED STATEMENT OF BALANCE SHEET as at 31 December 2020 ASSETS

2020 (EUR)

2019 (EUR)

1 416 156

1 410 100

68 872 -

42 577 282 828

1 485 028

1 735 505

16 040 538

16 103 242

Long-term investments Intangible assets Concessions, patents, licenses, trademarks and similar rights Intangible assets in development Goodwill Total intangible assets

Fixed assets Land, buildings and engineering structures Leasehold improvements

1 665 833

602 778

10 166 705

7 915 823

Other ﬁxed assets

6 098 893

5 236 398

Construction in progress

1 851 891

2 764 593

31 568

948 070

35 855 428

33 570 904

400 5 995 75 400

400 128 165 78 031

Total long-term ﬁnancial investments

81 795

206 596

Total long-term investments

37 422 251

35 513 005

Raw materials

8 896 382

13 881 379

Work in progress and unﬁnished orders

4 951 873

3 365 810

Finished goods and goods for sale

1 555 382

1 967 291

989 256

2 349 055

16 392 893

21 563 535

Equipment and devices

Prepayments for ﬁxed assets Total ﬁxed assets

Long-term ﬁnancial investments Other securities and investments Other loans and other long-term receivables Prepaid expenses

Current assets Stock

Prepayments for goods Total stock

Receivables Trade receivables

6 278 956

4 592 369

Other receivables

11 838 060

10 030 939

Prepaid expenses Accrued income Total receivables

Cash Total current assets Total assets

1 271 700

1 059 719

14 921 144

15 105 861

34 309 860

30 788 888

29 825 243

23 565 792

80 527 996 117 950 247

75 918 215 111 431 220

26 | CONSOLIDATED STATEMENT OF BALANCE SHEET

UPB ANNUAL REPORT 2020

EQUITY AND LIABILITIES

2020 (EUR)

2019 (EUR)

15 720 305

(55 687)

(20 515)

Shareholders’ equity Share capital Foreign exchange revaluation reserve Other reserves

379

287

Retained earnings brought forward from previous years

30 419 940

20 409 524

Proﬁt for the reporting year

13 304 214

13 410 508

1 096 864

961 379

60 486 015

50 481 488

6 557 857

4 187 216

6 557 857

4 187 216

987 131

1 889 612

2 089 288

426 850

815 405

87 472

144 346

2 403 934

4 036 170

4 447

Minority interest Total equity Provisions Other provisions Total provisions Liabilities Long-term liabilities Loans from credit institutions Other loans Other liabilities Deferred income Total long-term liabilities

Short-term liabilities Loans from credit institutions

1 291 099

1 246 801

Customer advances

17 852 926

17 366 684

Accounts payable to suppliers and contractors

Other loans

10 776 993

12 547 219

Taxes and compulsory state social security contributions

3 857 423

2 067 091

Other liabilities

1 215 437

1 015 989

245 324

168 014

Deferred income Dividends payable

1 662 122

6 010 203

Accrued liabilities

11 596 670

12 304 345

Total short-term liabilities

48 502 441

52 726 346

Total liabilities

50 906 375

56 762 516

117 950 247

111 431 220

Total equity, provisions and liabilities

CONSOLIDATED STATEMENT OF CASH FLOW | 27

UPB ANNUAL REPORT 2020

CONSOLIDATED STATEMENT OF CASH FLOW for the year ended 31 December 2020 2020 (EUR)

2019 (EUR)

14 442 468

13 924 165

4 761 937 1 128 507 2 370 641 (35 172) (18 148) ( 18 042) 127 803

4 182 676 726 299 (1 312 439) (10 913) 512 499 (58 829) 94 594

22 759 994

18 058 052

(3 956 647) 5 170 642

(3 513 814) (3 062 661)

(621 078) 23 352 911 (127 803) (470 811) 32 838

14 608 594 26 090 171 (94 594) (413 949) 24 991

22 787 135

25 606 619

(102 845)

(165 344)

178 646 116 800 (6 813 414) 205 939 (117 830) 252 259 18 042 -

929 316 700 (6 339 561) 142 190 (2 324) 232 58 829 (447 591)

(6 262 403)

(6 435 940)

4 447 (987 131) (1 472 394) (7 810 203)

12 610 26 018 (8 868) (1 401 247) (7 033 610)

(10 265 281)

(8 405 097)

6 259 451

10 765 582

Cash and cash equivalents at the beginning of the year

23 565 792

12 800 210

Cash and cash equivalents at the end of the year

29 825 243

23 565 792

Cash ﬂows from operating activities 1. Proﬁt before corporate income tax Adjustments for:

Depreciation and adjustments to impairment of fixed assets Amortization and adjustments of impairment of intangible assets Change in provisions (except allowances for doubtful debt) Profit or loss from foreign exchange rate fluctuations Net loss/(profit) from transactions with subsidiary shares Other interest and similar income Interest and similar expenses 2. Profit or loss before adjustments for the effect of changes to current assets and short-term liabilities Adjustments for:

(Increase)/decrease of receivables (Increase)/decrease of stock Increase or (decrease) of accounts payable to suppliers, contractors and other creditors 3. Gross cash ﬂows from operating activities 4. Interest paid 5. Corporate income tax paid 6. Received overpaid corporate income tax Net cash ﬂows from operating activities

Cash flows from investing activities Investments in related or associated companies Cash and cash equivalents obtained through acquisition of related companies Income from disposal of investments in related companies Purchase of fixed and intangible assets Income from disposal of fixed and intangible assets Loans issued Income from the repayment of loans issued Interest received Expenses from disposal of investments in related companies Net cash flows from investing activities

Cash flows from financing activities Loans received Subsidies, grants, donations or gifts received Repayment of loans Finance lease payments Dividends paid Net cash flows from financing activities

Net cash ﬂows for the reporting year

28 | CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

UPB ANNUAL REPORT 2020

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2020

Share capital (EUR)

At 31.12.2018

Retained earnings brought forward from Other reserves previous years (EUR) (EUR)

Proﬁt of the reporting year (EUR)

Foreign exchange revaluation reserve (EUR)

Minority interest (EUR)

Total shareholders’ equity (EUR)

15 720 305

275 018

16 779 178

11 514 520

(9 602)

1 283 168

45 562 587

Proﬁt for 2018 transferred to retained earnings

11 514 520

(11 514 520)

Changes due to acquisition of a subsidiary

269

137 231

Changes in relation to disposal of a subsidiary

(275 000)

275 000

Distribution of dividends

(8 296 405)

Foreign exchange revaluation result

(10 913)

13 410 508

15 720 305

287

20 409 524

13 410 508

Proﬁt of the reporting year

At 31.12.2019

(20 515)

(300 000) -

(151 431)

(162 500) -

(8 447 836)

(10 913)

129 642

13 540 150

961 379

50 481 488

Proﬁt for 2019 transferred to retained earnings

13 410 416

(13 410 416)

Proﬁt of 2019 transferred to reserves

(92)

Distribution of dividends

(3 400 000)

(62 122)

(3 462 122)

Foreign exchange revaluation result

(35 172)

Proﬁt of the reporting year

13 304 214

197 607

13 501 821

30 419 940

13 304 214

1 096 864

60 486 015

At 31.12.2020

15 720 305

379

(35 172) (55 687)

UPB ANNUAL REPORT 2020

NOTE TO THE FINANCIAL STATEMENTS The summary consolidated financial statements comprise the consolidated balance sheet as at 31 December 2020 and the consolidated statements of profit and loss, cash flow and changes in equity for the year then ended derived from the audited consolidated financial statements of AS UPB and its subsidiaries in accordance with the “Annual Reports and Consolidated Annual Report Law” of the Republic of Latvia. The full audited consolidated financial statements of AS UPB its subsidiaries and companies under Group agreement and the Auditors’ Report thereon are available at Dzintaru 17, Liepaja, Latvia. Management believes that the content of the summary consolidated financial statements is consistent with the objective of the summary consolidated financial statements.

NOTE TO THE FINANCIAL STATEMENTS | 29

30 | INDEPENDENT AUDITORS’ REPORT

UPB ANNUAL REPORT 2020

INDEPENDENT AUDITORS’ REPORT To the shareholders of AS UPB report on the summary consolidated financial statements

Opinion The accompanying summary consolidated financial statements on pages 24 to 29, which comprise the summary consolidated balance sheet as at 31 December 2020 and the summary consolidated statements of profit and loss, cash flow and changes in equity for the year then ended, and related note to the summary consolidated financial statements, are derived from the audited consolidated financial statements of AS UPB and its subsidiaries for the year ended 31 December 2020. In our opinion, the summary consolidated financial statements derived from the audited consolidated financial statements of AS UPB and its subsidiaries for the year ended 31 December 2020 are consistent, in all material respects, with the audited consolidated financial statements on the basis described in the Note to the summary consolidated financial statements. Summary Consolidated Financial Statements The summary consolidated financial statements do not contain all the disclosures required by the ‘Law on the Annual Reports and Consolidated Annual Reports’ of the Republic of Latvia. Reading the summary consolidated financial statements, therefore, is not a substitute for reading the audited consolidated financial statements of AS UPB and its subsidiaries, and our report thereon. The Audited Consolidated Financial Statements and our Report Thereon We expressed an unmodified audit opinion on AS UPB and its subsidiaries consolidated financial statements in our report dated 17 August 2021. Management’s Responsibility for the Summary Consolidated Financial Statements Management is responsible for the preparation of the summary consolidated financial statements based on audited consolidated financial statements on the basis described in the Note to the summary consolidated financial statements. Auditors’ Responsibility Our responsibility is to express an opinion on the summary consolidated financial statements whether based on our procedures, which were conducted in accordance with International Standard on Auditing 810, “Engagements to Report on Summary Financial Statements” summary consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements.

Riga, Latvia August 17, 2021 KPMG Baltics AS License No. 55

Valda Uzane

Member of the Board Riga, Latvia

www.facebook.com/UPBgrupa www.linkedin.com/company/upb-as

2021-1/1-EN

UPB, JSC Address: Dzintaru street 17, Liepaja, LV-3401, Latvia Phone: (+371) 67358933, e-mail: info@upb.eu.com www.upb.eu.com