UPB Annual Report 2016

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ERI

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TURNKEY SOLUTIONS

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XP

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GLASS STEEL CONCRETE ENERGY MACHINERY

ENGINEERING I PRODUCTION I DELIVERY I ASSEMBLY I SERVICE


2016

ANNUAL REPORT

CONT ENTS INFORMATION ON THE GROUP INFORMATION ON GROUP COMPANIES THE MARKET STRUCTURE

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MANAGEMENT’S REPORT

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SUMMARY CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF PROFIT OR LOSS CONSOLIDATED STATEMENT OF CASH FLOW CONSOLIDATED STATEMENT OF CHANGES IN EQUITY NOTE TO THE FINANCIAL STATEMENTS INDEPENDENT AUDITOR’S REPORT

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MAJOR PROJECTS IN 2016

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This document is in all respects a translation of the Latvian original Annual Report. In the event of any differences between this translation and the Latvian original, the latter shall prevail.

8 10 12 13 14 15 16


4 | INFORMATION ON THE GROUP

UPB ANNUAL REPORT 2016

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 Registered with the Commercial Register on 30 December 2004

PLACE OF OPERATION OF THE PARENT COMPANY’S EXECUTIVE BODY

Dzintaru Street 17, Liepaja, LV-3401, Latvia

BOARD MEMBERS OF THE PARENT COMPANY AND THEIR POSITIONS

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

SUPERVISORY BOARD MEMBERS OF THE PARENT COMPANY AND THEIR POSITIONS

Uldis Pilens, Chairman of the Supervisory Board Oskars Mors, Deputy Chairman of the Supervisory Board Normunds Horsts, Member of the Supervisory Board

REPORTING YEAR

01.01.2016 - 31.12.2016

AUDITORS

KPMG Baltics, LTD 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% Betona pētījumu centrs, LTD Reg. No. 50003479061 Legal address: Brivibas Avenue 221, Riga, LV-1039, Latvia Indirect UPB group through MB Betons, JSC: 93.50% Betons PR, LTD Reg. No. 44103036958 Legal address: Brivibas Street 87 c, Gulbene, LV-4401, 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%


INFORMATION ON THE GROUP | 5

UPB ANNUAL REPORT 2016 UPB enterprises UPB agencies UPB export markets

MB Betons, JSC Reg. No. 42103019343 Legal address: Dzintaru Street 17, Liepaja, LV-3401, Latvia UPB group: 93.50% MBD Reg. No. 4000344690 Legal address: Rupniecibas Street 1a, Daugavpils, LV-5420, Latvia Indirect UPB group through MB Betons, JSC: 93.50% RK Metāls, LTD Reg. No. 42103009504 Lauktehnikas Street 12, Grobina, LV-3430, Latvia UPB group: 100.00%

THE MARKET STRUCTURE

Stiklu Centrs, LTD Reg. No. 40003491838 Legal address: Pulvera Street 20, Liepaja, LV-3405, Latvia Indirect UPB group through AILE grupa, LTD: 100.00%

60% Export markets

Transportbetons MB, LTD Reg. No. 48503013571 Legal address: Robezu Street 34, Saldus, LV-3801, Latvia Indirect UPB group through MB Betons, JSC: 93.50% UPB Nams, LTD Reg. No. 42103041363 Legal address: Dzintaru Street 19, Liepaja, LV-3401, Latvia UPB group: 100%

40% Latvian market

Export markets (2016) Latvian market (2016)

UPB Projekti, LTD Reg. No. 41203030418 Legal address: Dzintaru Street 19, Liepaja, LV-3401, Latvia UPB group: 100.00% Vīna Studija, LTD Reg. No. 40003980114 Legal address: Maskavas Street 250, Riga, LV-1063, Latvia UPB group: 100.00% - until 23 December 2016 UPB, LTD Reg. No. 31049199 Legal address: Harbour House, Sundkrogsgade 21, DK-2100, Copenhagen, Denmark 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%

UPB Sweden, LTD Reg. No. 556757-7688 Legal address: c/o Advokatfirman Delphi, Box 1432, 1184, Stockholm, Sweden UPB group: 100.00%

Dzelzsbetons MB, LTD Reg. No. 42103029801 Legal address: Cukura Street 34, Liepaja, LV-3402, Latvia Indirect UPB group through MB Betons, JSC: 93.50%

UPB AS, LTD Reg. No. CH-092.4.017.548-3 Legal address: Grammetstrasse 14, Liestal, CH-4410, Switzerland UPB group: 100.00%

ENNA, LTD Reg. No. 52103030501 Legal address: Dzintaru Street 19, Liepaja, LV-3401, Latvia UPB group: 100.00%

UPB, LTD Reg. No. 611207-0340 Legal address: Borgartuni 27, 105 Reykjavik, Iceland UPB group: 100.00%

H&L STUDIJA, LTD Reg. No. 42103025231 Legal address: Pulvera Street 28, Liepaja, LV-3405, Latvia UPB group: 100.00%

UPB AS, LTD Reg. No. 9086239 Legal address: 4th floor Imperial House 15 Kingsway, London, WC2B 6UN, United Kingdom UPB group: 100%

IMS Latgale, LTD Reg. No. 41503039473 Legal address: Rupniecibas Street 1a, Daugavpils, LV-5404, Latvia Indirect UPB group through MB Betons, JSC: 93.50% 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% Jelgavas MB, LTD Reg. No. 43603014065 Legal address: Graudu Street 4, Jelgava, LV-3001, Latvia Indirect UPB group through MB Betons, JSC: 93.50%

UPB, LTD Reg. No. HRB 4293 Legal address: Plauener Strasse 163-165, Berlin, 13053, Germany AS UPB decisive influence on the basis of Group agreement 100% UPB Energy, LTD Reg. No. 42103028844 Legal address: Dzintaru Street 19, Liepaja, LV-3401 AS UPB decisive influence through UPB, Ltd in Germany 100.00% on the basis of Group agreement


6 | MANAGEMENT’S REPORT

UPB ANNUAL REPORT 2016

MANAGEMENT’S REPORT

UPB and its subsidiaries constitute an industrial group, the core business of which is the construction of complex buildings, including designing and engineering, manufacturing and assembling frame and facade structures. The group includes glass, steel and concrete building structures production units, a cogeneration modules and a mechanical engineering production units, as well as eleven ready-mix concrete production units throughout Latvia. UPB group has legal units in nine countries: Latvia, Sweden, United Kingdom, Germany, Switzerland, Iceland, Denmark, Norway and Azerbaijan. In 2016, UPB group reached a consolidated net turnover of 147 million euros. The significant increase from the previous reporting period was due to the solid growth in both: the export and Latvian markets, the implementation of technically more complex projects, the development of new products, and the synergy between the group’s many business groups. In 2016, UPB was recognised as the biggest taxpayer among Latvian construction companies. The ratio between export projects and local projects in 2016 was 66:34. The biggest export market increase was in Scandinavia where the demand for UPB’s combined frame and facade solutions is consistently growing: last year we implemented several projects of this kind, the biggest of which were Sorkedalsveien (an office and apartment building complex in Oslo, Norway) and Blenda (an office building in Gothenburg, Sweden). UPB’s competence in the implementation of green and sustainable projects was also recognised with BREEAM and LEED certification among others: nearly half of all projects implemented in 2016 comply with one of the environmentally friendly or sustainable systems. Diversification work last year included the strategic acquisition of new export markets. We also began working on our first glass facade projects in Ireland and entered into our first energetics contracts for projects in United Kingdom, meanwhile the products developed in our mechanical engineering business line have been exported to USA, Italy, Egypt, China, Peru, Chile, Serbia, Vietnam and Bulgaria. In October 2016, we opened a branch in Azerbaijan and started designing an aeroplane hangar for the Baku Airport. The strict seismic, wind load and fire safety requirements make the construction of this 8,046 square metre hangar one of the most complex steel structures construction objects to date. UPB will also be building the aeroplane hangar, starting in 2017. In December 2016, Vīna Studija Ltd, which was founded by UPB in 2008, changed owners. The decision to sell the

company was made in light of Vīna Studija’s development potential, which could be utilised further under industrysavvy management. Meanwhile, UPB group will be focusing on the construction and energetics industries. In 2016, we carried out several large-scale industrial projects in the Latvian market. In the Broceni Municipality, we have built the largest biomass cogeneration plant in Kurzeme with an electrical power of 3.98 MW and a thermal power of 16.6 MW. This project was implemented as a turnkey project, meaning that UPB ensured the full project cycle, including buildings, an engineering network, and the design and installation of energy technologies. The implementation of this project has proved the ability of UPB group to work with industrial projects on an advanced technological level. UPB will also be ensuring full technical maintenance of the cogeneration plant, including daily production process management, which, alongside the cogeneration module service, will expand UPB’s range of services. Other notable construction projects in Latvia during 2016 were the pellet factory in Broceni Municipality, the veneer impregnation workshop in Riga, the tree nursery and plant warehouse in Stende, the largest army ammunition warehouse complex in Latvia in Vainode, and other objects for the National Armed Forces. In 2016, we designed the track and field arena of the Liepaja Olympic Centre, the construction of which began in early 2017. Making use of the synergy opportunities between the UPB group’s companies, we implement increasingly more projects that combine all three main UPB products: glass, steel and concrete structures. In 2016 our biggest projects of this kind were the Blenda office building in Gothenburg, Sweden, the Suttung hotel in Uppsala, Sweden, the Sorkedalsveien office and apartment building in Oslo, Norway, and the previously mentioned Veckroģeļi cogeneration plant in Latvia. In 2016, UPB group restructured the sales team of its company Aile Grupa Ltd, which led to increased sales of glass structures. As a result, in 2017 we are looking at the largest glass structures sales portfolio to date. To increase the production capacity of the Aile Grupa, at the beginning of 2017 we expanded the production unit and built a new product warehouse at the industrial park on Pulvera Street in Liepaja. The biggest glass structures projects of 2016 were the Umestan Business Park in Umeo, Sweden, and the Media City Bergen press centre in Bergen, Norway. The steel structures and mechanical engineering company RK Metāls Ltd is still undergoing the modernisation of technologies and the expansion of its production premises. 2016 marked the end of the project for the expansion and modernisation of production units, which lasted several


MANAGEMENT’S REPORT | 7

UPB ANNUAL REPORT 2016

years. As a result, the mechanical engineering plant’s production area has doubled, the painting capacity has improved, and the structural steel warehouse has been optimised. In the field of mechanical engineering, the latest RK Metāls’ line of business, we have developed new fully automated products of a high level of complexity. One of the most notable local projects was designing and engineering, manufacturing and installing a cargo lift at the Latvian National Opera and Ballet. Its lifting capacity is 30 tonnes. In 2016, the mechanical engineering line of business saw a 31% increase in the number of employees. In 2016, RK Metāls also obtained the ISO 9001 quality management certificate. In the MB Betons group, which is the largest group in the UPB group, the number of precast concrete structures in 2016 increased from the previous year. After the modernisation of equipment at Daugavpils Dzelzsbetons Ltd production unit, its capacity has considerably increased and it participates in the implementation of export projects. The MB Betons group has developed new products including brick imitation, precast concrete facades and precast concrete facade elements with integrated aluminium windows.

unprecedented in the world. This kind of design process optimisation, the integration thereof with the supporting information system of UPB’s business processes, and the continuous modernisation of the manufacturing infrastructure is moving UPB group towards the Industry 4.0 concept. Development of the information system and investments in information technologies are important parts of UPB’s business, which have already encouraged significant improvements in capacity and efficiency. UPB group continues supporting educational, sports and cultural programmes. Last year, we continued our close cooperation with the Engineering High School of Riga Technical University. The majority of 2016’s profits will go into developing UPB’s export fields, researching and acquiring new markets, and strengthening our positions both in local and foreign markets. In 2017, we plan on focusing our attention to the implementation of Design-Build projects with the aim of improving the overall performance, starting with the designing phase. We will also continue working on developing Eastern markets and expanding mechanical engineering markets.

UPB group’s company UPB Energy Ltd considerably increased its sales in 2016, both in the field of energy projects and production of cogeneration modules. The largest object was the previously mentioned Veckroģeļi energy complex where the cooperation will continue due to the contract for the complex’s maintenance. The UPB Energy’s innovative project with geothermal gas cogeneration stations in Croatia is also ongoing. Meanwhile in Germany, UPB GmbH demonstrated solid sales and service results of the cogeneration plants made in Latvia. In 2016, UPB group carried on with investment projects in innovative technological solutions. By using an application programming interface (public API), the UPB’s team of engineers developed plug-ins for the TEKLA designing software. These solutions allow the combining of designing steel, concrete and glass structures with Building Information Modelling (BIM) principles, which is

Dainis Berzins

Chairman of the UPB Management Board 16 June 2017

Nora Kalna

Member of the Board

Ugis Grinbergs

Member of the Board



2016

ANNUAL REPORT

SUMMARY CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF PROFIT OR LOSS CONSOLIDATED STATEMENT OF CASH FLOW CONSOLIDATED STATEMENT OF CHANGES IN EQUITY NOTE TO THE FINANCIAL STATEMENTS INDEPENDENT AUDITOR’S REPORT

| | | | | |

10 12 13 14 15 16


10 | CONSOLIDATED STATEMENT OF FINANCIAL POSITION

UPB ANNUAL REPORT 2016

CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 December 2016 ASSETS

2016 (EUR)

2015 (EUR)

35 353

35 353

Non-current investments Intangible assets Goodwill Concessions, patents, licenses, trademarks and similar rights Prepayments for intangible assets Total intangible assets

1 728 196

770 249

9 976

288 861

1 773 525

1 094 463

16 849 207

17 647 213

711 116

780 911

Non-current assets Land, buildings and engineering structures Leasehold improvements Equipment and machinery

6 976 981

7 121 685

Other non-current assets

4 382 706

4 487 176

Construction in progress

368 682

834 356

-

87 999

29 288 692

30 959 340

514 824

133 686

Prepayments for non-current assets Total non-current assets

Non-current financial assets Other loans and other non-current receivables Prepaid expenses

12 873

3 392

302 054

283 011

829 751

420 089

31 891 968

32 473 892

Raw materials

8 016 548

6 851 643

Unfinished products and orders

3 902 286

3 106 422

Finished goods and goods for sale

2 750 568

3 509 942

Deferred tax assets Total non-current financial assets

Total non-current investments Current assets Inventories

Prepayments for goods

397 842

502 786

15 067 244

13 970 793

Trade receivables

8 164 740

7 738 611

Other receivables

6 463 383

5 823 823

Prepaid expenses

1 188 150

915 154

Accrued income

3 755 670

5 119 286

Total receivables

19 571 943

19 596 874

13 728 232

10 019 401

Total current assets

48 367 419

43 587 068

80 259 387

76 060 960

Total inventories

Receivables

Cash Total assets


CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 11

UPB ANNUAL REPORT 2016

EQUITY, PROVISIONS AND LIABILITIES

2016 (EUR)

2015 (EUR)

Equity Issued capital Other capital reserve Retained earnings brought forward from previous years Retained profit of the reporting year Foreign currencies revaluation reserve Minority interest Total equity

720 385

720 385

2 874 333

2 874 333

30 076 179

30 031 046

7 229 814

3 414 022

(151 201)

(19 018)

1 269 223

1 256 201

42 018 733

38 276 969

4 196 779

3 682 762

4 196 779

3 682 762

1 018 010

2 578 598

709 798

711 648

1 152 353

818 205

Provisions Other provisions Total provisions Liabilities Non-current liabilities Interest - bearing loans and borrowings Other non-current financial liabilities Deferred tax liabilities Other liabilities

250 254

216 758

Deferred revenue

346 498

217 070

3 476 913

4 542 279

Total non-current liabilities

Current liabilities Interest bearing loans and borrowings Other current financial liabilities Customer prepayments Trade and other payables

60 600

90 000

760 664

781 628

8 310 388

11 911 955

10 024 948

7 091 201

Taxes and social contributions

1 394 590

1 314 877

Other liabilities

1 297 225

451 321

76 224

66 411

Deferred revenue Dividends payable

2 572 640

1 999 827

Accrued liabilities

6 069 683

5 851 730

Total current liabilities

30 566 962

29 558 950

Total liabilities

34 043 875

34 101 229

80 259 387

76 060 960

Total equity, provisions and liabilities


12 | CONSOLIDATED STATEMENT OF PROFIT OR LOSS

UPB ANNUAL REPORT 2016

CONSOLIDATED STATEMENT OF PROFIT OR LOSS for the year ended 31 December 2016 2016 (EUR)

2015 (EUR)

147 458 606

108 381 851

(132 380 851)

(96 007 060)

Gross profit

15 077 755

12 374 791

Selling expenses

(1 624 771)

(1 396 744)

Administrative expenses

(6 444 017)

(6 676 968)

417 468

514 344

(228 540)

(350 380)

200 669

126 590

Income /expenses from disposal of long-term financial investments

1 057 203

-

Interest and similar expenses

(100 081)

(159 574)

Profit before corporate income tax

8 355 686

4 432 059

Corporate income tax

(756 015)

(993 234)

Profit after corporate income tax

7 599 671

3 438 825

Income or charge from changes in balances of deferred tax assets or liabilities

(315 105)

105 447

Profit before minority interest

7 284 566

3 544 272

(54 752)

(130 250)

7 229 814

3 414 022

Net sales Cost of goods sold

Other operating income Other operating expenses Interest and similar income

Profit / loss of minority share Profit of the reporting year


CONSOLIDATED STATEMENT OF CASH FLOW | 13

UPB ANNUAL REPORT 2016

CONSOLIDATED STATEMENT OF CASH FLOW for the year ended 31 December 2016 2016 (EUR)

2015 (EUR)

8 355 686

4 432 059

3 762 902 374 017 514 017 (132 183) (1 035 977) (21 263) 77 613 73 415 11 968 227 1 495 293 (1 641 508) 519 476 12 341 488 (73 415) (1 105 413) 72 671

4 336 464 134 202 275 555 (47 977) (75 621) 141 276 9 195 958 (4 467 188) 44 191 7 804 742 12 577 703 (141 276) (1 499 743) 167 402

11 235 331

11 104 086

(2 405 032) 199 620 (204 485) (423 022) 369 223 21 263

(3 570 010) 232 540 (2) (545 457) 196 511 75 621

(2 442 433)

(3 610 797)

218 680 (1 589 988) (1 104 826) (2 607 933)

(442) 446 051 37 125 (133 211) (1 041 920) (6 763 043)

(5 084 067)

(7 455 440)

3 708 831

37 849

Cash and cash equivalents at 1 January

10 019 401

9 981 552

Cash and cash equivalents at 31 December

13 728 232

10 019 401

Cash flows from operating activities 1. Profit before corporate income tax Adjustments to reconcile profit before tax to net cash flows for:

Depreciation and adjustments to impairment of fixed assets Amortization and adjustments to impairment of intangible assets Movement in provisions (except for doubtful debt allowance) Foreign exchange reserve Income from investments in related, associated or other companies Finance income Adjustments to impairment of current and non-current financial investments Finance cost 2. Working capital adjustments: (Increase)/decrease of trade and other receivables (Increase)/decrease of inventories Increase /(decrease) of trade and other payables 3. Gross cash flows from operating activities 4. Interest paid 5. Corporate income tax 6. Received overpaid corporate income tax Net cash flows from operating activities

Cash flows from investing activities Purchase of non-current assets Proceeds from disposal of non-current assets Income /(expenses) from disposal of investments in related companies Loans issued Loans repayment received Interest received Net cash flows from investing activities

Cash flows from financing activities Decrease of share capital Loans received Subsidies, grants, donations or gifts received Repayment of loans Payment of finance lease liabilities Dividends paid Net cash flows from financing activities

Net increase in cash and cash equivalents


14 | CONSOLIDATED STATEMENT OF IN EQUITY

UPB ANNUAL REPORT 2016

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2016 Total shareholders’ equity (EUR)

Issued capital (EUR)

Reserves set in the Company’s Statutes (EUR)

Other capital reserves (EUR)

Retained earnings of previous years (EUR)

Profit for the reporting year (EUR)

Foreign exchange revaluation reserve (EUR)

720 827

150 842

5 243 166

27 957 766

5 146 469

28 959

-

-

-

5 146 469

(5 146 469)

-

-

-

(442)

-

-

-

-

-

-

(442)

Transfer of reserves in accordance with shareholders’ decision

-

(150 842)

(2 368 833)

2 519 675

-

-

-

-

Distribution of dividends

-

-

-

(5 592 864)

-

-

(41 717)

(5 634 581)

Change in the investment in a subsidiary

-

-

-

-

-

-

(2)

(2)

Foreign exchange revaluation result

-

-

-

-

-

(47 977)

-

(47 977)

Profit for the reporting period

-

-

-

-

3 414 022

-

130 250

3 544 272

720 385

-

2 874 333

30 031 046

3 414 022

(19 018)

1 256 201

38 276 969

Profit for 2015 transferred to retained earnings

-

-

-

3 414 022

(3 414 022)

-

-

-

Distribution of dividends

-

-

-

(3 368 889)

-

-

(41 730)

(3 410 619)

Foreign exchange revaluation result

-

-

-

-

-

(132 183)

-

(132 183)

Profit for the reporting period

-

-

-

-

7 229 814

-

54 752

7 284 566

720 385

-

2 874 333

30 076 179

7 229 814

(151 201)

At 31.12.2014 Profit for 2014 transferred to retained earnings Denomination of share capital

At 31.12.2015

At 31.12.2016

Minority interest (EUR)

1 167 670 40 415 699

1 269 223

42 018 733


UPB ANNUAL REPORT 2016

NOTE TO THE FINANCIAL STATEMENTS The summary consolidated financial statements comprise the consolidated statement of financial position as at 31 December 2016 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, its subsidiaries and companies under Group agreement in accordance with the Annual Reports and Consolidated Annual Report Law of the Republic of Latvia. The 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 | 15


16 | INDEPENDENT AUDITOR’S REPORT

UPB ANNUAL REPORT 2016

INDEPENDENT AUDITOR’S REPORT on the summary consolidated financial statements To the shareholders of AS UPB

Opinion The accompanying summary consolidated financial statements on pages 10 to 15, which comprise the summary consolidated statement of financial position as at 31 December 2016 and the summary consolidated statements of profit and loss, cash flow and changes in equity for the year then ended, and related notes to the summary consolidated financial statements, are derived from the audited consolidated financial statements of AS UPB, its subsidiaries and companies under Group agreement for the year ended 31 December 2016. In our opinion, the summary consolidated financial statements derived from the audited consolidated financial statements of AS UPB, its subsidiaries and companies under Group agreement for the year ended 31 December 2016 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, its subsidiaries and companies under Group agreement.

The Audited Consolidated Financial Statements and our Report Thereon We expressed an unmodified audit opinion on AS UPB, its subsidiaries and companies under Group agreement consolidated financial statements in our report dated 16 June 2017.

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 June 16, 2017 KPMG Baltics SIA License No. 55

Valda Uzane

Member of the Board Riga, Latvia

Irena Sarma

Sworn Auditor Certificate No. 151


2016

ANNUAL REPORT

MAJOR PROJECTS IN 2016


18 | MAJOR PROJECTS IN 2016

UPB ANNUAL REPORT 2016

MAJOR PROJECTS IN 2016 COMPLEX SOLUTIONS

GLASS

STEEL

CONCRETE

MACHINERY

Administrative building TRONDHEIMSPORTEN Trondheim, Norway GLASS

MACHINERY

STEEL

MACHINERY

CONCRETE

STEEL

STEEL

CONCRETE

CONCRETE

STEEL

CONCRETE

CONCRETE

GLASS

STEEL

GLASS

STEEL

CONCRETE

MACHINERY

Office building UMESTAN BUSINESS PARK Umea, Sweden MACHINERY

Media centre MEDIA CITY BERGEN Bergen, Norway GLASS

Production unit LATVIJAS FINIERIS Riga, Latvia ENERGY

MACHINERY

GLASS

Multifunctional building STUDIO Malmo, Sweden

Industrial energo-complex VECKROGELI Broceni, Latvia GLASS

GLASS

Administrative building SEGERSTEDTHUSET Uppsala, Sweden

Office building HORNAN Solna, Sweden STEEL

Hotel KV. SUTTUNG Uppsala, Sweden

Office building BLENDA Gothenburg, Sweden

Office and apartment buildings SORKEDALSVEIEN Oslo, Norway

MACHINERY

Lifting platform LATVIAN NATIONAL OPERA AND BALLET Riga, Latvia CONCRETE

STEEL

MACHINERY



UPB, JSC Adress: Dzintaru street 17, Liepaja, LV-3401, Latvia Phone: (+371) 67358933, e-mail: info@upb.eu.com www.upb.eu.com www.facebook.com/UPBholding www.linkedin.com/company/upb-as


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