Modus Group 2019 Business Overview

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Business Overview 2019


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MODUS GROUP


Business Overview 2019

Content 4 6 8 12 14 20 28 30 40 44 48 52 56

A word from the CEO Map of operations Our strategic guidelines and culture Our team Corporate governance Financial results Business highlights - Renewable energy - Mobility - Automotive Trusting green Our story so far Our brands

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MODUS GROUP

A word from the CEO While focusing on our strategic guidelines – investing into the future, trusting green and thinking smart – our passionate team continued to write an international success story in 2019. KĘSTUTIS BAGDONAVIČIUS, PHD CHAIRMAN OF THE MANAGEMENT BOARD AND CEO OF MODUS GROUP

Last year, the group moved forward on its path to growth and proceeded with its investments into renewable energy, shared mobility and the automotive areas. With a focus on international expansion, today we already operate in 12 European markets. Development of new projects across Europe led to robust growth of revenue by almost 50 percent compared to 2018. For the first time in Modus Group’s history, revenue exceeded 0.5 billion euros. EBITDA amounted to more than

55 million euros, meanwhile, operating profit reached 43.6 million euros and was reinvested into further business development and new projects. The strongest growth was observed in renewable energy and mobility business lines. The revenue of renewable energy company Green Genius grew by 129 percent reaching 63 million euros. This growth was primarily fueled by the implementation of biogas and solar energy projects in Poland, Ukraine and Belarus.


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Business Overview 2019

Meanwhile, shared mobility services revenue grew by 89 percent and reached 38 million euros. Shared mobility company CityBee successfully expanded its operations in the Baltics and started offering new services for its clients. 2019 was also a very successful year for our automotive business: revenue grew by 39 percent and reached 400 million euros.

DEVELOPMENT OF NEW PROJECTS ACROSS EUROPE LED TO ROBUST GROWTH OF REVENUE BY ALMOST

50

%

COMPARED TO 2018.

In 2019 Modus Group continued to invest into its key strategic business lines: green energy and innovative mobility solutions. Total investments increased by 145 percent and reached almost 159 million euros. The biggest share – 136 million euros – was allocated to green energy projects, 21 million – to mobility services.

These business lines will remain at the core of Modus Group future strategy. As many other companies across the globe, due to changing global situation and new economic challenges related to pandemic in 2020, we will have to realign our plans. Top priorities for the company are our employees’ safety and health, as well as ensuring sustainable business continuity. However, in the long term, we will stay committed to international growth plans. Changing situation brings opportunities as well – to enter new business areas or start offering new services. The example is already shown by CityBee that expanded its scope of operations and started offering delivery services. With our highly experienced and dedicated team we are determined to seize new opportunities. I invite you to have a look at Modus Group 2019 Business Overview that reflects our key results and milestones from the last year.


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MODUS GROUP

Map of operations

Modus Group mainly focuses on three areas of activity: renewable energy (Green Genius), mobility services (CityBee) and automotive business. Today we unify 14 automobile brands, including Porsche, Bentley, BMW, Fiat, Maserati and other world-renowned names of the car industry. We also operate in other areas, including smart parking solutions and real estate. The group is currently operating in 12 European markets.


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Spain Mobility

Automotive

Solar energy

Biogas

Holding company

Romania

Ukraine

Latvia Estonia Lithuania Belarus

Poland Hungary

Global office of main business units and country operations

Italy

Czech Republic

The Netherlands

Business Overview 2019


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MODUS GROUP

Our strategy and culture

From the beginning of Modus Group operations, we have had a clear goal to operate creating value for our stakeholders. Throughout the years we have crystalized our identity and set the aim to grow in a sustainable manner. All along our journey, three fundamental strategic guidelines have been allowing us to create shared value, meet the expectations of our stakeholders and accomplish our vision.


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Business Overview 2019

Investing into future. Investing into profitable ideas that address future needs.

Trusting green. Ecology and sustainability.

Working smart. Less use of labor and more of capital and high-tech.


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MODUS GROUP

Our strategic guidelines and culture

We driv evo WE

We is more than me.

We trust and respect each other. We share our knowledge and strengths. We work together, therefore, we succeed.


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Business Overview 2019

ve olution EVOLUTION

Progress is in our blood.

Comfort is not comfortable. We take and make it better. We experiment and learn from mistakes. We create a better future.

DRIVE

Going with a flow is not enough, we are driven to win. We are ambitious. We go forward. We dare and we get it done.


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MODUS GROUP

Our team Strong business growth and implementation of ambitious plans are only possible because of a dedicated Modus Group team. The aim of the group is to create organisational culture where cooperation while achieving goals, knowledge sharing and responsibility are a part of everyday life.

On 30 April 2020, more than 700 people worked in our group of companies. Compared to 2019, the overall number of employees grew by 1.7 percent. While the majority of the team is located in our home market Lithuania, the number of colleagues in other markets is continuing to grow. Compared to 2019, the number of employees working in other

markets grew by 5 percent up to 44 percent. The number of employees grew in renewable energy and mobility business areas (by 6 percent and 2 percent accordingly), meanwhile in automotive as well as holding and other activities the number of employees decreased (by 4 percent in each area).

Other market

44%


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Business Overview 2019

>

700 PROFESSIONALS IN OUR TEAM

Energy

28% 2020 22% 2019

Mobility

16% 2020 14% 2019

ts

%

Lithuania

Automotive

56%

50% 2019

Other markets

46% 2020

Lithuania

39% 61%

2020

2019

Holding and other activities

10% 2020 14% 2019


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MODUS GROUP

Corporate governance Effective and transparent corporate governance is one of the key elements for successful operations and strong growth of the company. Therefore, Modus Group has established a two tier corporate governance structure that meets the needs of business, its stakeholders and complies with relevant laws and regulations.


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Business Overview 2019

CORPORATE GOVERNANCE

Management Board The Management Board is a collegial management body consisting of 5 members responsible for the main business areas in which the company operates, including renewable energy, mobility and automotive business. The Management Board is responsible for the group’s business development, growth and expansion. It steers strategic vision of the group, manages investments, approves business plans and holds the group’s companies accountable for the execution of agreed goals. On 1 of April 2020 (announced officially on 6 of March 2020), Kęstutis Bagdonavičius was appointed as the new CEO and member of the Management Board of Modus Group. He was also elected as the new Chairman of the Management Board. Kęstutis Bagdonavičius replaced Liudas Liutkevičius

who had been holding CEO and Chairman of the Management Board positions for 3 years. He continues serving on the Management Board. Effective 1 of April, the composition of the Modus Group Management Board has also changed. Shareholder’s family members Ainė MartinkėnaitėMartyniuk and Oleg Martyniuk are no longer serving as members of the Management Board. They are focusing on the Modus Group long-term vision and strategy. Erika Zakarauskienė, who joined Modus Group as the CFO in September 2019, was appointed to the Management Board.


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MODUS GROUP

CORPORATE GOVERNANCE

Management Board

ON 30 APRIL 2020, THE MANAGEMENT BOARD WAS COMPRISED OF THE FOLLOWING MEMBERS:

Kęstutis Bagdonavičius, Erika Zakarauskienė PhD Chairman of the Management Board and CEO

Member of the Management Board, Chief Financial Officer

EDUCATION

EDUCATION

- Economics PhD, Vilnius University

- Economics, Master’s degree, Kaunas University of Technology

- Economics, Master’s degree, Vilnius University -Economics, Postgraduate degree, University of Hamburg -Executive and management programs at Boston Business School, IMD, Singularity University and Wharton School of the University of Pennsylvania -Finance and controlling course, University of St. Gallen PREVIOUS EXPERIENCE

Had been working at ERGO group companies for more than 25 years where he took diverse management positions

- Business/ Managerial Economics, Bachelor’s Degree, Vytautas Magnus University -Board Member Education Certificate, Baltic Institute of Corporate Governance - Executive School (MBA), ISM Management and Economics University PREVIOUS EXPERIENCE

Had been holding different financerelated positions at Achema Group companies for 5 years, had been a CFO of KG Group for 10 years


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Business Overview 2019

Ruslan Sklepovič

Giedrius Audickas

Liudas Liutkevičius

Member of the Management Board responsible for renewable energy

Member of the Management Board responsible for mobility

Member of the Management Board responsible for automotive

EDUCATION

EDUCATION

EDUCATION

- Energy Management, Master’s degree, Vilnius Gediminas Technical University

- Financial Economics, Master’s degree, ISM Management and Economics University

- International Finance, Master’s degree, Vilnius University Business School

-Energy Management, Bachelor’s degree, Vilnius Gediminas Technical University

- Economics, Bachelor’s degree, ISM Management and Economics University

- International Business, Bachelor’s Degree, Vilnius University Business School

- Board Member Education Certificate, Baltic Institute of Corporate Governance

- Board Member Education Certificate, Baltic Institute of Corporate Governance

- Board Member Education Certificate, Baltic Institute of Corporate Governance

PREVIOUS EXPERIENCE

PREVIOUS EXPERIENCE

PREVIOUS EXPERIENCE

Has been working at different Modus Group companies for more than 14 years where he took diverse management positions

Has been working at different Modus Group companies for more than 8 years where he took diverse management positions

Had been holding top management positions in different organizations (Eesti Energia Group, Ignitis Group, Litgrid, Pristis) for more than 15 years


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MODUS GROUP

CORPORATE GOVERNANCE

Supervisory Board The Supervisory Board of the company is a collegial supervisory body which currently consists of 5 members, 3 of them are independent. The Supervisory Board is composed of experts with diverse experience in fields like risk management, strategy development, finance and financial markets, digital marketing, AI, high-tech, project management. The main function of the Supervisory Board is supervising and advising the Management Board on the strategic direction of the group and overseeing performance of the company

for the benefit of its stakeholders. The Supervisory Board is also responsible for appointing Modus Group Management Board. The Supervisory Board and the Management Board of the company meet 3 times a year. On 6 March 2020 Simon Rozas, an independent member of the Supervisory Board, was appointed as the Chairman of the Supervisory Board after KÄ™stutis BagdonaviÄ?ius resignation from the supervisory body.


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Business Overview 2019

Simon Rozas

Kęstutis Martinkėnas

Chairman of the Supervisory Board, Independent member

Member of the Supervisory Board, founder of the company and the sole shareholder

ON 30 APRIL 2020, THE SUPERVISORY BOARD WAS COMPRISED OF THE FOLLOWING MEMBERS:

EXPERIENCE

Investment Director at Cube Infrastructure Managers; Investor

EXPERIENCE

Jolanta Martinkėnienė

Vytautas Paukštys

Saulius Umbrasas

Member of the Supervisory Board and family member of the shareholder

Independent member of the Supervisory Board

Independent member of the Supervisory Board

EXPERIENCE

EXPERIENCE

EXPERIENCE

CEO at Eskimi

Co-founder of E-Band Communications

Diverse management positions at Modus Group companies

Modus Group founder


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Financial results


Business Overview 2019

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MODUS GROUP

2019 FINANCIAL RESULTS

Revenue In 2019, Modus Group’s audited consolidated revenue (hereinafter, the revenue) rose by 49 percent and reached EUR 504.69 million. The fastest revenue growth was observed in the energy business line. Revenue of energy companies owned by Modus Group increased

129%

by 129 percent up to EUR 63.64 million. Revenue of mobilityrelated businesses increased by 89 percent reaching EUR 37.99 million. Automotive business grew by 39 percent with its revenue reaching EUR 400.78 million.

89%

Growth of revenue in renewable energy area

Growth of revenue in mobility area

39% Growth of revenue in automotive area

Energy

Mobility

Automotive

63.34

37.99

400.78

2019

Energy

Mobility

27.63 20.15

Automotive

287.52

2018 The Company’s management resolved to present the Group’s financial statements for 2019 in accordance with International Financial Reporting Standards as adopted by the European Union (hereinafter – IFRS). In order to implement the decision, adjustments were made to the Group’s accounting policy which as of 1 January 2018 is consistent with the requirements of IFRS. When preparing their initial statement of financial position in accordance with IFRS, the Group adjusted the amounts presented in the financial statements prepared under Business Accounting Standards of the Republic of Lithuania.


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Business Overview 2019

49% Growth of revenue on the Group level Total revenue (mEUR):

338.03

504.69

2018 2019

Transactions and other

2.58 Transactions and other

2.73

Robust revenue growth of Modus Group in 2019 was driven by renewable energy company Green Genius’ active expansion and growth in Poland, Ukraine and Belarus where the company has successfully implemented new solar and biogas projects. The mobility segment also grew significantly as shared mobility company CityBee expanded operations in the Baltics and introduced new micro mobility services for its clients.


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MODUS GROUP

2019 FINANCIAL RESULTS

EBITDA Last year Modus Group earned EUR 55.35 million before interest, taxes, depreciation and amortization (EBITDA). EUR 16.31 million was earned by renewable energy companies, EUR 9.99 million – by automotive business line, EUR 2.34 million – by mobility companies. EUR 26.71 million EBITDA was earned from other business activities that include holding company operations

such as sales (including revenue from the sale of BMW and Mini automotive business in Lithuania in 2019), mergers & acquisitions of entities and assets. Results of these operations are included in the Other subgroup. Audited consolidated operating profit before tax reached EUR 43.6 million and was reinvested in the further growth of business and new projects.

Total EBITDA (mEUR):

2019

2018

19.61


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Business Overview 2019

Energy

16.31 2019 7.94 2018 Mobility

2.34 2019 2.132018

105% Growth of EBITDA in renewable energy area

10% Growth of EBITDA in mobility area

Automotive

9.99 2019 8.22 2018

22% Growth of EBITDA in automotive area

Other

26.71 2019 1.32 2018

55.35 182% Growth of EBITDA on the Group level


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MODUS GROUP

2019 FINANCIAL RESULTS

Othe

0.1

Investments In 2019, Modus Group companies’ investments in various fields of activity in Lithuania and markets abroad increased by 145 percent and amounted to EUR 158.9 million. The biggest share of the investments – EUR 135.7 million – was directed to energy projects, while EUR 21.3 million were assigned to the development of businesses related to mobility services. A large part of the investment were directed at business development in markets abroad including renewable energy projects in Poland, Ukraine and Belarus.

145% Growth of investments on the Group level

Total investments (mEUR): 2018 2019

64.73

158.9


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Business Overview 2019

er Automotive

1.8

Energy

135.7 2019 50.34 2018

Mobility

21.3

Mobility

Energy

21.3 2019 10.1 2018

170% Growth of investments to the renewable energy projects

111% Growth of investments to the shared mobility services

135.7 Automotive

1.8 2019 0.66 2018 Other

0.1 2019 3.63 2018

173% Growth of investments to the automotive business

-97% Decrease of investments into other projects


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MODUS GROUP

Business highlights


Business Overview 2019

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MODUS GROUP

Renewable energy

RUSLAN SKLEPOVIČ, MEMBER OF THE MANAGEMENT BOARD RESPONSIBLE FOR RENEWABLE ENERGY BUSINESS

2019 was an exceptional record growth year for Green Genius – we grew in terms of team, operations, investments and results. Having set ambitious goals – to be among the biggest renewable energy developers in Europe, last year we’ve expanded our solar and biogas operations into new markets and today are already present in 8 European countries. Also, in order to prepare for further international growth, we have made a strategic decision that all Modus Group’s renewable energy activities will operate under one Green Genius brand starting 2020.


Business Overview 2019

Energy brand

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Our successful growth was partly based on building long term international partnerships with investors and clients. Among them – leading global asset manager Aberdeen Standard Investments, France-based investment company Eiffel Investment Group, green infrastructure financing platform RGreen Invest, European Bank for Reconstruction and Development (EBRD) and one of the biggest Polish banks mBank. These partnerships are evidence of trust in our expertise. We also grew our B2B partnerships: back in 2019, we signed a solar-as-a-service contract with leading European telco company ORANGE Technical Site in Poland, giving the company a helping hand to generate green and clean energy themselves. It

was also a good year for our company Axton Commodities. Established just a few years ago, in 2018, to extend our operations in the fields of power trading, guarantees of origins (GO), European emission allowances (EUA) and Power Purchase Agreement (PPA) market, in 2019 it started electricity trade in Germany. Due to current uncertainties in the markets, many businesses will have to readjust their strategies. At Green Genius we will also have to adapt our ambitious growth plans. The path might be rocky for renewable energy projects development in the short term, but in the long term the demand for green energy in Europe will grow. And Green Genius is ready to be one of the the frontrunners while creating a cleaner environment for future generations.


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MODUS GROUP

Solar energy Robust growth in Poland. In July 2019, Green Genius’ solar parks with a total capacity of 45.4 MW were acquired by Aberdeen Standard Investments. At that moment it was the biggest transaction for solar power parks in Poland. Recently Green Genius has finished construction of the second portfolio with a total capacity of 41 MW in the country and is about to start implementing the third one with a total capacity of 42 MW. Poland remains one of the most attractive markets to develop solar power projects because of its size and the potential for development in the area of renewable energy.

Trust from international investors. In 2019, Green Genius and mBank, one of the biggest Polish banks, signed a EUR 10 million loan to finance solar power projects in Poland. To that date it was the largest ticket for similar projects in the country. This year Green Genius signed a EUR 30 million loan with Eiffel Energy Transition fund. The company plans to use these funds to develop and build green energy projects across Europe.


Business Overview 2019

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150 45.4 MW >

THE TOTAL CAPACITY OF PROJECTS IMPLEMENTED AND BEING CONSTRUCTED

MW

THE TOTAL CAPACITY OF SOLAR POWER PARKS IN POLAND ACQUIRED BY THE LEADING GLOBAL ASSET MANAGER


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MODUS GROUP


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Business Overview 2019

Gaining foothold in Ukraine. Last year, Green Genius implemented their first solar energy project in Ukraine. Over EUR 11 million was invested in the 13.5 MW project. The company recently has also launched another solar park in the country, so far the biggest solar power project implemented by Green Genius. More than EUR 30 million was invested in the project with a capacity of 33.4 MW. The latter project was financed by European Bank for Reconstruction and Development (EBRD). Currently, the solar park portfolio managed by Green Genius in Ukraine amounts to almost 47 MW. Supplying business and households with green energy. In 2019, Green Genius signed B2B solar-as-a-service contract with top telco operator ORANGE Technical Site in Poland. Starting from 2020, Green Genius is also providing green energy opportunities for residents of Lithuania by offering them to rent or buy remote solar power plants. All households including those in apartment buildings will be able to generate green and clean energy and benefit from it.

International recognition. ​ The Embassy of the Republic of Poland to Lithuania awarded Modus Group for its investments in solar energy development in Poland. Moreover, Green Genius received a prize in Italy for sustainable development in 2019.

IN 2019:

>

50 43 OF GREEN ENERGY GENERATED

>

THOUSAND TONNES OF CO2 SAVED

GWH


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MODUS GROUP

Biogas Advanced technology. New biodegradable materials processing line was integrated into the biogas plant in Lithuania. The investment exceeded EUR 4.5 million. It is the first and one of the most advanced biogas power plants with an integrated biodegradable materials processing line in the Baltic states. The operation of the power plant fully meets the principles of circular economy – as a result of the technological process, both economic and industrial waste are converted into materials used to generate biogas, which can then be used to generate energy and produce fertilisers for the agriculture sector. The power plant processes about 20 thousand tonnes of different biodegradable materials a year.

IN 2019:

120 THOUSAND TONNES OF CO2 SAVED APPROXIMATELY

110 20

>

GWH

GREEN ENERGY GENERATED

MW

>

IN ALL MARKETS


Business Overview 2019

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MODUS GROUP


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Business Overview 2019

A PARTNERSHIP WITH

EBRD DEVELOPING PROJECTS IN BELARUS

STARTED BIOGAS ACTIVITIES IN

Poland

Expansion in Belarus. 3 new biogas power plants in Belarus started operating last year. Recently, another biogas project was finished. Currently, Green Genius operates 8 biogas power plants in Belarus with a total capacity of 10 MW. Each year they will supply more than 80 GWh of green energy to the country. The company works closely together with the European Bank for Reconstruction and Development (EBRD) while developing green energy projects in Belarus. Entering new markets. Last year Green Genius announced that the company will enter Polish biogas market. Poland is already a well-known market for Green Genius as the company has accumulated extensive experience in the solar energy projects there. Polish biogas sector is very attractive as there are not many strong players operating in this sector, whereas the growth potential is high. Therefore, Green Genius has decided to use the experience gained in other countries for the development of biogas projects in Poland. The plan for this year is to implement the first biogas project with a total capacity of 1 MW and lay a foundation for further expansion in the country.


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MODUS GROUP

Mobility 2019 was an important year for CityBee when it successfully continued its transformation from a Lithuanian startup to one of the biggest mobility services providers in the CEE region. GIEDRIUS AUDICKAS, MEMBER OF THE MANAGEMENT BOARD RESPONSIBLE FOR MOBILITY BUSINESS

We are constantly looking for modern solutions that would allow us to offer the most convenient urban mobility services to our clients. For this reason, during the year we introduced new transportation means to our fleet – it was expanded with e-kick scooters and bikes, also, the number of cargo and passenger cars grew. Following the increasing need for hassle-free mobility alternatives, CityBee also expanded to the new locations. Today we operate in 16 cities in 4 countries: Lithuania, Latvia, Estonia, and Poland. Now our clients have an opportunity to use a CityBee car for intercity drives to travel within the Baltic States. As a result of these milestones, our client-base last year tripled compared to 2018. The long-term strategy of CityBee is to not only provide convenient transportation

for our customers, but to also establish ourselves further into the transportation market by introducing new services. With a strong focus on the development of new services, CityBee has started providing door to door the same day goods’ delivery B2B service in the Baltics in 2020. During the few weeks we have been active, we already made more than 600 deliveries in Lithuania alone. Moreover, we have also started offering grocery delivery services to private customers in Vilnius. The fast pace and flexibility have always been our main advantage. Therefore, the changing global situation not only brings challenges but also allows us to seize new business opportunities. CityBee has already accumulated the knowhow and is ready to start offering even more convenient urban transportation to its clients.


Business Overview 2019

Mobility brand

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MODUS GROUP

Mobility The company is already operating in all Baltic states while offering clients convenient international journeys.

The total number of CityBee customers tripled compared to 2018.


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Business Overview 2019

Entering new markets. CityBee passenger cars rolled out to the streets of Latvia and Estonia. Currently, there are 2.3 thousand CityBee cars in all markets, more than 500 of them are hybrid ones. During 2019, more than 800 new CityBee automobiles were introduced to the fleet. Today, the full package of CityBee services is offered to our customers in the Baltics. Interconnected Baltics. Since CityBee is present in all Baltic states, last year the company started offering its clients an opportunity for international journeys. CityBee customers now can start their journey either in Vilnius, Riga or Talin and finish in any capital of the Baltics. Offering convenient micro mobility services. CityBee launched e-kick scooters in Lithuania, Latvia, Estonia and Poland. By the end of the 2019 season, there were 3 thousand e-kick scooters in all markets.

Tallinn municipality awarded CityBee for micro-mobility services in the city.

Growing community. As the e-kick scooters were launched in all Baltic states, the total number of CityBee clients tripled compared to 2018. By the end of 2019, CityBee had more than 600 thousand customers in all markets. Expanding the network of cargo cars. Last year they were launched in Latvia and Estonia. In total today there are more than 350 cargo cars in the streets of the Baltic states and Poland. New services introduced. Last CityBee had a strong focus on developing new convenient transportation services. Starting from April 2020, the company has expanded its scope of operations. It started providing same day goods’ delivery service for businesses in the Baltics. Also, CityBee now offers grocery delivery service to private customers in Vilnius.

CityBee’s name was included in the Startup Museum in Lithuania among other successful international startups from Lithuania.


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MODUS GROUP

Automotive

LIUDAS LIUTKEVIÄŒIUS, MEMBER OF THE MANAGEMENT BOARD RESPONSIBLE FOR AUTOMOTIVE BUSINESS

The automotive business has always been at the core of the Modus Group strategy, since it started from a single dealership in Lithuania. In 2019, the automotive team continued its successful performance as the results of the business line grew significantly. In recent years, the automotive area has changed considerably. Our top priority is to meet our clients growing expectations, therefore, last year we opened two modern Fiat Chrysler Automobiles (FCA) representative offices and also introduced new more environmentally-friendly models. 2019 was a record year as the number of sold cars almost doubled. Such numbers prove that we have earned our clients’ trust and we are working every day to maintain it.


Business Overview 2019

Automotive brands

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46

MODUS GROUP

Automotive Transaction for new opportunities. Krasta Auto companies, which were representing BMW, BMW Motorrad, MINI, and Rolls Royce in Lithuania, were sold. Due to the completed transaction, new business investment opportunities opened up. Opening new showrooms. Autobrava Motors opened two new Fiat Chrysler Automobiles (FCA) showrooms in Lithuania. New showrooms already opened their doors in Kaunas and KlaipÄ—da, while the one in Vilnius will be opened this year. Furthermore, we recently opened a new Bentley showroom in Vilnius. Maserati showroom is at the last stage of construction and will open its door later this year.

Acknowledged quality. As the vehicles of the year were chosen, automobiles of Modus Group represented brands in Latvia won in two categories: the title of eco-car of the year went to Hyundai Kona Hybrid and the award for the best 4x4 SUV – to Suzuki Jimny. In Lithuania, Jeep Wrangler was announced as the winner in the SUV category.

Due to the Krasta Auto transaction, new investment opportunities opened.


Business Overview 2019

Two new FCA representative offices opened in Lithuania.

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THE SALES OF AUTOMOBILES ALMOST DOUBLED AND REACHED A RECORD OF

25 THOUSAND UNITS

Earning clients’ trust. In 2019, our sales of automobiles almost doubled and reached a record of more than 25 thousand units. Sponsoring sports. JEEP became an official sponsor of the MTB bicycle marathon cup for 2020 and 2021. For the next two years the cup will be called JEEP MTB bicycle marathon. Also, JEEP became a sponsor of BC Rytas Vilnius for the 2019-2020 season.


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MODUS GROUP

Trusting green IN 2019:

IT IS EQUIVALENT TO THE CO2 THAT APPROXIMATELY

THOUSAND TONNES OF CO2 SAVED BECAUSE OF OUR MOBILITY AND RENEWABLE ENERGY BUSINESSES

MILLION 10-YEAR-OLD TREES COULD ABSORB IN A YEAR

165 2.7


Business Overview 2019

Growing business and creating value for our stakeholders in a sustainable manner is at the core of the Modus Group strategy. By joining the United Nations (UN) Global Compact in 2020, we have committed to bring our responsibility to the next level. As a member of the largest voluntary corporate sustainability initiative in the world, we support and implement the Ten Principles of the UN Global Compact on human rights, labor, environment and anti-corruption and advance the broader development of the UN goals.

49


50

MODUS GROUP

Our footprint on earth By investing in future businesses like renewable energy or next-generation mobility services we are not only ensuring healthy business growth but also contributing to the cleaner environment and well-being of society.

go, but it is also important to appreciate the results reached so far.

Therefore, creating shared value is an integral part of both – our daily operations as well as strategic long-term decisions. Acting in a responsible and sustainable way is a part of our culture and identity on every level of organization. We understand that there’s still a long way to

But there’s more: in biogas plants, using state-of-the-art technology, we process animal and other organic waste that is converted to odourless liquid fertilizer. Last year, we opened a new state-ofthe-art biodegradable materials processing line near Vievis, Lithuania. It is one of the most

Positive impact of renewable energy Last year, our biogas power plants generated more than 110 GWh of green energy, meanwhile solar power plants — more than 50 GWh. Such an amount of green energy could power an entire town of more than 210 thousand inhabitants for a year and equals to more than 160 thousand tonnes of CO2 saved. That’s approximately the amount that 2.6 million 10-year-old trees could absorb in a year.


51

Business Overview 2019

advanced biogas power plants in the Baltic states. By generating green and clean energy in this and other biogas plants, we contribute to the implementation of circular economy principles and the ambitious goals set by the European Union. Moreover, we create positive impact for local communities as we help to reduce odour emitted by landfills and animal farms. THANKS TO OUR MOBILITY SOLUTIONS, DURING 2019 THERE WERE

15

THOUSAND FEWER CARS IN THE STREETS AND PARKING LOTS

LAST YEAR, OUR BIOGAS POWER PLANTS GENERATED MORE THAN

110

GWH

OF GREEN ENERGY

OUR SOLAR POWER PLANTS GENERATED MORE THAN

50 OF GREEN ENERGY

GWH

We also contribute to the well-being of communities by making renewable energy more affordable for them. In 2019, by supplying and producing heat from renewable energy sources, we reduced the price of heat for the inhabitants of Vievis by 10-20 percent. Mobility solutions for cleaner environment in the cities Thanks to our mobility solutions, during 2019 there were 15 thousand fewer cars in the streets and parking lots due to the fact that one shared car replaced 12 privately owned ones. While reducing urban congestion, these mobility solutions also contributed to greenhouse gas savings. We give priority to CO2 efficient hybrid or electric cars in the CityBee fleet. Last year, CityBee also introduced a new transportation means to its fleet in Baltic countries — e-kick scooters. Hence, due to micromobility services, decreased fleet emissions and replaced cars, the environment was protected from 5.5 thousand tonnes of CO2 — equivalent to the CO2 that approximately 90 thousand of 10-year-old trees could absorb in a year. These numbers are a promising start, and we are committed to climb higher.


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MODUS GROUP

Our story so far

Modus Group story began in 1993 in Lithuania. During more than 27 years, the company has grown to a successful international business.


53

Business Overview 2019

L I T H UA N I A

1993 L I T H UA N I A

2003 L I T H UA N I A

2004 B EL A RUS

2008 TH E BA LT I C S

2010 L I T H UA N I A

2011

First solar power plant

L I T H UA N I A

2012 LIT H UANIA

2013

LIT H UANIA

L I T H UA N I A L AT VI A

Implementation of first biogas power plant project in Lithuania

2015

Successfully listed bonds on the Nasdaq Baltic First North Alternative market

2016

Started partnership with EBRD

P OLAND SPAIN

2017

Solar power plants projects in Poland and Spain

LIT H UANIA


54

MODUS GROUP

Our story so far


55

Business Overview 2019

2018 Successfully listed bonds on the Nasdaq Baltic First North alternative market for the second time

Merger of the parking operator UniPark and City Parking Group B ELARUS

Power trading company operating in Nordic and Baltic region P OLAND

Building biogas power plants in Belarus

B2B solar-as-a-service in Europe

POLAND

Solar projects in Poland

T H E BALT IC S

Autobrava becomes an official JEEP importer in the Baltics P OLAND

2019

Solar PV parks transaction with Aberdeen in Poland LIT H UANIA

P OLAND

Biogas activities started in Poland T H E BALT IC S P OLAND

UK R A I N E

The first implemented solar project in Ukraine L AT VI A ESTO N I A

Sale of

in Lithuania

E-kick scooters in Vilnius, Riga, Tallinn, Warsaw and other cities

Passenger cars in Latvia and Estonia H UN G A RY RO M A N I A

2020 Renewable energy businesses started operating under single name

Secured financing from Eiffel Energy Transition fund for renewable energy projects

Parkdema secured financing from Edmond de Rothschild Asset Management

Launched goods‘ and groceries‘ delivery services

New markets for renewable energy: Romania and Hungary


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MODUS GROUP

Our brands Holding and investment companies

Energy

Mobility and smart parking solutions


Business Overview 2019

Automotive

Real estate

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