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 31 th 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 17 th , 2019. Interest was paid to the investors who held the notes as of January 14 th , 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 4 th quarter
  • Net Operating Income amounted to EUR 307 891 in 4 th quarter

Expenses

  • Operating expenses amounted to EUR 6 670 in 4 th quarter
  • Interest expense on loans and bonds issued amounted to EUR 143 019

Interest-bearing liabilities

  • Bank loan repaid in 4 th 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

www.unitedpartners.ee

         United Partners, Director          Siim Sild          Phone: +372 5626 0107          e-mail: siim.sild@unitedpartners.ee