The Issuer published its 4Q 2018 results on 31.01.2019. The published results for the reporting period were correct and have not been adjusted. There was a mistake in the comparable periods used in the Income Statement, Balance Sheets and Cash Flow Statement, due to which the published interim report did not meet the Regulation standards. With the following correction the Issuer has changed the comparable periods used in the financial statements from 3Q 2018 to 4Q 2017.
UPP & CO Kauno 53 OÜ
Interim Report
October – December 2018
Main Events of 4Q 2018
Regular technical maintenance of the premises
Promalita UAB team has created a list of the findings from technical audit which was conducted by Cityservice in the 3rd quarter of 2018. The list includes the maintenance works and regulates the Lessor's and Tenants' obligations in commencing the maintenance works. The list has been sent to the tenants in December, 2018. A discussion between the tenants and Promalita UAB team will be held in February, 2019 where the parties will discuss further the procedure and timeline regarding commencing the maintenance works. Majority of the deficiencies discovered are caused by a small impact with a truck or a forklift and are easily repairable. In general the premises are in good technical condition and we are continuing regular maintenance works to preserve the premises in good condition.
Vacancy, payment behaviour and indexation
As of 31th of December 2018, there is no vacancy in the building and all rental and utilities payments are received in time from all tenants. In January, rent indexation will be implemented on all tenants.
Quarterly interest payment
Interest for UPP & CO Kauno 53 OÜ bonds was paid on January 17th, 2019. Interest was paid to the investors who held the notes as of January 14th, 2019.
“Investor Desk” service
Silver Kalmus is a new person responsible for the “Investor Desk” service in the Group company United Partners Advisory OÜ. “Investor Desk” was established in 2017 with the aim to further improve investor relations. Silver can be contacted on all matters regarding UPP & CO Kauno 53 OÜ, including if the investor wishes to buy or sell their Notes. Following are his contacts:
Silver Kalmus
Investorsuhted
+372 56206 450
silver.kalmus@unitedpartners.ee
Financial Performance (consolidated)
4Q 2018 – Net profit EUR 124 228
Net Sales and Net Profit
- Net Sales amounted to EUR 314 561 in 4th quarter
- Net Operating Income amounted to EUR 307 891 in 4th quarter
Expenses
- Operating expenses amounted to EUR 6 670 in 4th quarter
- Interest expense on loans and bonds issued amounted to EUR 143 019
Interest-bearing liabilities
- Bank loan repaid in 4th quarter EUR 115 000, loan outstanding EUR 8 433 333
- Issued bonds outstanding EUR 4 700 000
DSCR
- Issuer consolidated 1.2
Statement of the Management Board
The financial and other additional information published in the Interim Report October – December 2018 is true and complete. Consolidated financial statements give a true and fair view of the actual financial position, results of operations and cash flows of the Company. According to the Terms and Conditions of the Note Issue, the Company confirms that during the interim report period there has been non-occurrence of an Extraordinary Early Redemption Event and according to Clause 3.4.12 of the Terms the Collateral is properly insured at all times.
Consolidated financial statements in the report for the period October – December 2018 are not audited.
Marko Tali
Member of the Management Board
Tallinn, 01.02.2019
Income Statement
(the Company, “Promalita” UAB and consolidated)
| PROFIT/LOSS STATEMENT | K53 | Promalita | Cons. | Cons. | Cons. |
| in euros | 100% | 4Q2018 | YTD | 4Q2017 | |
| Sales revenues | 0 | 309 130 | 309 130 | 1 236 734 | 320 566 |
| Other operating income | 0 | 5 431 | 5 431 | 12 147 | 0 |
| Total revenues from operating activities | 0 | 314 561 | 314 561 | 1 248 881 | 320 566 |
| Cost of goods sold | 0 | 0 | 0 | 0 | -28 477 |
| Administrative expenses | -2 014 | -695 | -2 709 | -19 119 | -8 339 |
| Personnel expenses | 0 | -79 | -79 | -1 036 | -308 |
| Depreciation of fixed assets | 0 | -3 882 | -3 882 | -16 198 | -3 875 |
| Total operating expenses | -2 014 | -4 656 | -6 670 | -36 353 | -40 999 |
| Profit (loss) from operating activities | -2 014 | 309 905 | 307 891 | 1 212 528 | 279 567 |
| Financial revenues (costs) | 5 378 | -148 397 | -143 019 | -573 728 | -144 390 |
| Net profit (loss) before taxation | 3 364 | 161 508 | 164 872 | 638 800 | 135 177 |
| Corporate income tax | 0 | -40 644 | -40 644 | -160 584 | -4 321 |
| Net profit (loss) of the period | 3 364 | 120 864 | 124 228 | 478 216 | 130 856 |
Balance Sheets
(the Company, “Promalita” UAB and consolidated)
| BALANCE SHEET | K53 | Promalita | Cons. | Cons. |
| in euros | 100% | 31.12.2018 | 31.12.2017 | |
| ASSETS | ||||
| Current assets | ||||
| Cash and bank | 81 271 | 78 413 | 159 684 | 37 245 |
| Accounts receivable and prepayments | 36 905 | 49 740 | 49 746 | 9 544 |
| Stock | 0 | 0 | 0 | 0 |
| Total current assets | 118 176 | 128 153 | 209 430 | 46 789 |
| Non-current assets | ||||
| Long-term financial investments | 3 200 | 0 | 0 | 0 |
| Log-term loans | 5 396 350 | 0 | 0 | 0 |
| Real Estate investments | 0 | 15 350 000 | 15 350 000 | 15 350 000 |
| Fixed assets | 0 | 22 113 | 22 113 | 39 931 |
| Goodwill | 0 | 1 280 818 | 1 280 818 | 1 280 629 |
| Total non-current assets | 5 399 550 | 16 652 931 | 16 652 931 | 16 670 560 |
| TOTAL ASSETS | 5 517 726 | 16 781 084 | 16 862 361 | 16 717 349 |
| LIABILITIES AND EQUITY | ||||
| Current liabilities | ||||
| Short-term loans | 0 | 460 000 | 460 000 | 460 000 |
| Accounts payables and other settlements | 80 644 | 84 643 | 128 143 | 134 245 |
| Total current liabilties | 80 644 | 544 643 | 588 143 | 594 245 |
| Non-current liabilities | ||||
| Long-term bank loan | 0 | 7 973 333 | 7 973 333 | 8 433 335 |
| Long-term bonds | 4 700 000 | 0 | 4 700 000 | 4 700 000 |
| Long-term shareholder's loan | 711 850 | 5 396 350 | 711 850 | 721 750 |
| Long-term provisions | 0 | 2 172 332 | 2 172 332 | 1 994 866 |
| Total non-current liabilities | 5 411 850 | 15 542 015 | 15 557 515 | 15 849 951 |
| TOTAL LIABILITIES | 5 492 494 | 16 086 658 | 16 145 658 | 16 444 196 |
| EQUITY | ||||
| Share capital | 2 500 | 2 500 | 2 500 | 2 500 |
| Retained earning | 22 732 | 691 926 | 714 203 | 270 653 |
| Retained earning from previous periods | 9 527 | 224 660 | 235 987 | -2 |
| Retained earnings from current period | 13 205 | 467 266 | 4 798 216 | 270 655 |
| TOTAL EQUITY | 25 232 | 694 426 | 716 703 | 273 153 |
| TOTAL LIABILITIES AND EQUITY | 5 517 726 | 16 781 084 | 16 862 361 | 16 717 349 |
Cash Flow Statement
(the Company, “Promalita” UAB and consolidated)
| CASH FLOW STATEMENT | K53 | Promalita | Cons. | Cons. |
| in euros | 100% | 4Q2018 | 4Q2017 | |
| Profit from operating activities | -2 014 | 309 905 | 307 891 | 279 567 |
| Amortization | 0 | 3 882 | 3 882 | 3 875 |
| Change in operating receivables and prepayments | 300 | 67 731 | 68 031 | 16 812 |
| Change in reserves | 0 | 0 | 0 | 10 233 |
| Change in operating liabilities and advances | 0 | 4 871 | 4 871 | 896 |
| Cash flows from operations | -1 714 | 386 389 | 384 675 | 311 383 |
| Acquisition of fixed assets | 0 | 0 | 0 | -29 115 |
| Repayment of loans issued | 64 500 | 0 | 0 | 0 |
| Received interest | 108 319 | 0 | 2 | 0 |
| Cash flows from investments | 172 819 | 0 | 2 | -29 115 |
| Loans received and bonds issued | 60 000 | 0 | 60 000 | 50 050 |
| Repayments of loans and redeemed bonds | -84 500 | -179 500 | -199 500 | -207 000 |
| Paid interest | -103 344 | -147 207 | -142 234 | -133 684 |
| Cash flows from financing | -127 844 | -326 707 | -281 734 | -290 634 |
| Total cash flows | 43 261 | 59 682 | 102 943 | -8 366 |
| Cash at the beginning of period | 38 010 | 18 731 | 56 741 | 45 611 |
| Changes in cash | 43 261 | 59 682 | 102 943 | -8 366 |
| Cash at the end of period | 81 271 | 78 413 | 159 684 | 37 245 |
UPP & CO Kauno 53 OÜ
Pärnu mnt. 141
11314 Tallinn, Estonia
Phone +372 6616 450
E-mail: property@unitedpartners.ee
United Partners, Director
Siim Sild
Phone: +372 5626 0107
e-mail: siim.sild@unitedpartners.ee
