UNDER RESTRUCTURING

SNAIGĖ AB

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS AND ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

PRESENTED TOGETHER WITH INDEPENDENT AUDITOR’S REPORT

Confirmation of responsible persons

19-04-2023

Alytus

Following the Article 22 of the Law on Securities of the Republic of Lithuania and the Bank of Lithuania

Information Disclosure Rules, we, Mindaugas Sologubas, Managing Director, and Vytautas Adomaitis,

Chief of the Accounting and Finance Department, confirm that, to our knowledge, the added SNAIGĖ

AB, audited consolidated and company‘s financial statements of year 2022, prepared in accordance

with International Financial Reporting Standards as adopted by the European Union are fair and present

fairly the assets, liabilities, financial position, profit or loss and cash flows of the company and group,

and the consolidated annual report fairly presents an overview of the business development and

operations, the state of the company and the group of companies together with a description of the

main risks and uncertainties we face.

CONTENTS

Independent Auditor’s Report 4

Consolidated and separate statement of comprehensive income 9

Consolidated and separate statement of financial position 11

Consolidated statement of changes in equity 13

Separate statement of changes in equity 14

Consolidated and separate statement of cash flows 15

Notes to the financial statements 17

Under restructuring Snaigė AB and group Consolidated Annual Report, Corporate

Governance Report and Corporate Remuneration Report 57

Under restructuring Snaigė AB and group Consolidated Social Resposnsibility Report 106

Sustainability Report 123

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Consolidated and separate statement of comprehensive income

	Notes		Group		Company
		2022	2021	2022	2021
Sales	3	21,220	33,538	20,359	32,852
Cost of sales	4	(21,829)	(30,289)	(21,196)	(29,780)
Gross profit		(609)	3,249	(837)	3,072
Selling and distribution expenses	5	(1,352)	(2,636)	(1,353)	(2,655)
General and administrative expenses	6	(3,365)	(2,104)	(3,233)	(1,990)
Other income	7	252	464	378	565
Other expenses	8	(162)	(442)	(245)	(505)
Operating profit (loss)		(5,236)	(1,469)	(5,290)	(1,513)
Finance income	9	8	64	8	64
Finance costs	10	(508)	(543)	(508)	(543)
Profit (loss) before income tax		(5,736)	(1,948)	(5,790)	(1,992)
Income tax	11	566	(26)	578	(26)
Net profit (loss)		(5,170)	(1,974)	(5,212)	(2,018)
Other comprehensive income
Items that will never be reclassified to profit or loss		-	-	-	-
Revaluation of property, plant and equipment		-	-	-	-
Related tax		-	-	-	-
Items that are or may be reclassified to profit or loss		(2)	2	-	-
Exchange differences on translation of foreign operations		(2)	2	-	-
Total other comprehensive income, net		(2)	2	-	-
of tax
Total comprehensive income, net of tax		(5,172)	(1,972)	(5,212)	(2,018)

(continued on the next page)

The notes on pages 17–56 are an integral part of these financial statements.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Consolidated and separate statement of comprehensive income (continued)

	Notes		Group		Company
		2022	2021	2022	2021
Net profit (loss) attributable to:
The shareholders of the Company		(5,170)	(1,974)	(5,212)	(2,018)
Non-controlling interest		-	-	-	-
Total comprehensive income, net of tax, attributable to:		(5,170)	(1,974)	(5,212)	(2,018)
The shareholders of the Company		(5,172)	(1,972)	-	-
Non-controlling interest		-	-	-	-
Profit (loss) per share		(5,172)	(1,972)	(5,212)	(2,018)
Basic and diluted profit (loss) per share	28	(0.13)	(0.05)	(0.13)	(0.05)

The value of comprehensive income of EUR 890 thousand (as at 2021 EUR 846 thousand) was transferred directly to retained

earnings, transferring depreciation of revalued assets less deferred income tax, and is disclosed in Note 20 and in the

statement of changes in equity of the Company and the Group.

The notes on pages 17–56 are an integral part of these financial statements.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Consolidated and separate statement of financial position

(continued on the next page)

The notes on pages 17-56 are an integral part of these financial statements.

			Group	Company
		As at 31	As at 31	As at 31	As at 31
		December	December	December	December
	Notes	2022	2021	2022	2021
ASSETS
Non-current assets
Intangible assets	12	1,345	1,567	1,344	1,567
Property, plant and equipment	13	12,080	13,366	12,026	13,295
Assets managed under lease right	25	84	109	84	109
Investments into subsidiaries	1	-	-	424	424
Total non-current assets		13,509	15,042	13,878	15,395
Current assets
Inventories	15	3,793	6,142	3,790	6,127
Trade receivables	16, 29	2,025	4,247	1,965	4,181
Prepayments		580	493	579	493
Other amounts receivable	14, 17	151	250	151	248
Cash and cash equivalents	18	179	129	17	53
Total current assets		6,728	11,261	6,502	11,102
Total assets		20,237	26,303	20,380	26,497

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Consolidated and separate statement of financial position (continued)

The notes on pages 17-56 are an integral part of these financial statements.

		Group		Company
		As at 31	As at 31	As at 31	As at 31
		December	December	December	December
	Notes	2022	2021	2022	2021
EQUITY AND LIABILITIES
Equity
Share capital	19	6,736	6,736	6,736	6,736
Legal reserve	20	718	718	674	674
Revaluation reserve of property, plant and equipment	20	6,785	7,675	6,785	7,675
Foreign currency translation reserve		(54)	(52)	-	-
Retained earnings (loss)		(15,787)	(11,507)	(15,576)	(11,254)
Equity attributable to equity holders of the Company		(1,602)	3,570	(1,381)	3,831
Non-controlling interest		-	-	-	-
Total equity		(1,602)	3,570	(1,381)	3,831
Liabilities
Non-current liabilities
Grants	21	234	289	234	289
Provisions	22	94	118	94	117
Deferred income tax liability	11	1,063	1,628	1,061	1,639
Non-current borrowings	23	10,053	8,005	10,053	8,005
Non-current employee benefits	24	209	326	187	300
Other non-current liabilities	24	8,298	-	8,464	-
Total non-current liabilities		19,951	10,366	20,093	10,350
Current liabilities
Current portion of non-current borrowings	23	9	2,502	9	2,502
Trade payables		835	8,204	677	8,229
Current rent liabilities	25	86	111	86	111
Prepayments received		121	93	120	85
Provisions	22	147	182	146	180
Employees related liabilities	26	597	893	546	846
Other current liabilities	27	93	382	84	363
Total current liabilities		1,888	12,367	1,668	12,316
Total liabilities		21,839	22,733	21,761	22,666
Total equity and liabilities		20,237	26,303	20,380	26,497

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Consolidated statement of changes in equity

					Foreign
					currency			Non-
				Revalua-	transla-	Retained		control-
		Share	Legal	tion	tion	earnings		ling	Total
	Notes	capital	reserve	reserve	reserve	(loss)	Total	interest	equity
Balance as at 1 January 2021		6,736	991	8,521	(54)	(10,652)	5,542	-	5,542
Profit (loss), not recognized in comprehensive income	20	-	-	(846)	-	846	-	-	-
Other changes		-	(273)	-	-	273	-	-	-
Net profit (loss) for the year		-	-	-	-	(1,974)	(1,974)	-	(1,974)
Other comprehensive income		-	-	-	2	-	2	-	2
Total comprehensive income		-	-	-	2	(1,974)	(1,972)	-	(1,972)
Share capital decrease		-	-	-	-	-	-	-	-
Balance as at 31 December 2021		6,736	718	7,675	(52)	(11,507)	3,570	-	3,570
Profit (loss), not recognized in comprehensive income	20	-	-	(890)	-	890	-	-	-
Other changes		-	-	-	-	-	-	-	-
Net profit (loss) for the year		-	-	-	-	(5,170)	(5,170)	-	(5,170)
Other comprehensive income		-	-	-	(2)	-	(2)	-	(2)
Total comprehensive income		-	-	-	(2)	(5,170)	(5,172)	-	(5,172)
Share capital decrease		-	-	-	-	-	-	-	-
Balance as at 31 December 2022		6,736	718	6,785	(54)	(15,787)	(1,602)	-	(1,602)

The notes on pages 17-56 are an integral part of these financial statements.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Separate statement of changes in equity

Notes

capital

Legal

reserve

Revaluation

reserve

Retained

earnings

(loss)

Total

Balance as at 1 January 2021

6,736

946

8,521

(10,354)

5,849

Profit (loss), not recognized in

comprehensive income

(846)

846

Other changes

Net profit (loss) for the year

(2,018)

Other comprehensive income (expenses)

(272)

272

Total comprehensive income

(272)

(1,746)

(2,018)

Share capital decrease

Balance as at 31 December 2021

6,736

674

7,675

(11,254)

3,831

Profit (loss), not recognized in

comprehensive income

(890)

890

Net profit (loss) for the year

(5,212)

Other comprehensive income

Total comprehensive income

(5,212)

Share capital decrease

Balance as at 31 December 2022

6,736

674

6,785

(15,576)

(1,381)

The notes on pages 17-56 are an integral part of these financial statements.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Consolidated and separate statement of cash flows

			Group		Company
	Notes	2022	2021	2022	2021
Cash flows from (to) operating activities
Net result for the year		(5,170)	(1,974)	(5,212)	(2,018)
Adjustments for non-cash items:
Depreciation and amortisation		1,909	1,980	1,893	1,950
Grants (related to assets)		(55)	(105)	(55)	(105)
Grants (related to income)		-	(118)	-	(91)
Income tax expense (income)		(566)	7	(578)	7
Write-off of non-current assets		240	54	239	4
Impairment allowance for trade receivables and inventories		562	(68)	565	(32)
Change in provisions		(59)	(19)	(57)	(13)
Dividends income		(2)	(1)	(2)	(1)
Interest expenses		502	478	502	502
Elimination of other non-cash items		-	(119)	-	45
Changes in working capital:		(2,639)	115	(2,705)	248
(Increase) decrease in inventories		2,287	(1,939)	2,275	(2,013)
(Increase) decrease in trade and other receivables		1,734	(77)	1,724	(273)
Increase (decrease) in trade and other payables		(41)	2,290	(15)	2,414
Advance income tax returned (paid)		-	(31)	-	(31)
Net cash flows from operating activities		1,341	358	1,279	345
Cash flows from (to) investing activities
(Acquisition) of property, plant and equipment		(54)	(1,240)	(81)	(1,240)
(Acquisition) of intangible assets		(265)	(402)	(264)	(402)
Interest received		-	27	-	27
Loan recovery		-	192	-	192
Others		-	-	-	-
Lending/ Provision of loans		-	(103)	-	(103)
Net cash flows from investing activities		(319)	(1,526)	(345)	(1,526)

(continued on the next page)

The notes on pages 17-56 are an integral part of these financial statements.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Consolidated and separate statement of cash flows (continued)

			Group		Company
	Notes	2022	2021	2022	2021
Cash flows from (to) financing activities
Proceeds from non-current borrowings and other financial sources		-	2,105	-	2,105
Interest (paid)		(83)	(478)	(83)	(478)
(Repayment) of borrowings		(864)	(757)	(864)	(733)
Grants received		-	118	-	91
Rent payments		(25)	-	(25)	-
Net cash flows from (to) financing activities		(972)	988	(972)	985
Net increase (decrease) in cash and cash		50	(180)	(38)	(196)
equivalents
Effect of currency exchange rate on the balance of cash		-	-	2	-
Cash and cash equivalents at the beginning		129	309	53	249
of the year
Cash and cash equivalents at the end of the year	18	179	129	17	53
The notes on pages 17-56 are an integral part of these financial statements.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Notes to the financial statements

1. General information

Snaigė AB (hereinafter “the Company”) is a public company registered in the Republic of Lithuania. Legal status of the

Company at the reporting date – under restructuring (Note 33). The address of its registered office is as follows:

Pramonės str. 6,

Alytus,

Lithuania.

The Company is engaged in production of refrigerators, freezers and metal products. The Company was registered on 1

April 1963. The Company’s shares are traded on the Baltic Secondary List of the NASDAQ OMX Vilnius stock exchange.

As at 31 December 2022 and 2021 the shareholders of the Company were:

	2022		2021
	Number of	Ownership	Number of	Ownership
	shares held (in		shares held (in
	thousand units)	share	thousand units)	share
SEKENORA HOLDINGS LIMITED	36,096	91.10%	36,096	91.10%
Other shareholders	3,526	8.90%	3,526	8.90%
Total	39,622	100%	39,622	100%

All the shares of the Company are ordinary shares with the par value of EUR 0.17 (EUR 0.17 in 2021) each and were fully

paid as at 31 December 2022 and 2021 (Note 19). As at 31 December 2022 and 2021, the Company did not hold its own

shares.

As at 31 December 2022, the Group had 397 employees, and Company had 372 employees (as at 31 December 2021,

536 and 513 correspondingly).

As at 31 December 2022, the Board of the Company consisted of 3 members (in 2021 it consisted of 4 members). The

board does not have representatives of Snaigė AB. Members of the Board are disclosed in Group‘s annual report.

The Group consisted of Snaigė AB and the following subsidiaries as at 31 December 2022 (hereinafter “the Group”):

					Shareholder
		Cost of	Percentage of	Profit (loss) for	s’ equity
		investment (EUR		the shares held the reporting year	(EUR
Company	Country	thousand)	by the Group	(EUR thousand)	thousand)
Snaige Ukraina TOB	Ukraine	26	99%		13
Almecha UAB	Lithuania	398	100%	43	217
Total		424

The Group consisted of SNAIGĖ AB and the following subsidiaries as at 31 December 2021 (hereinafter “the Group”):

					Shareholder
		Cost of	Percentage of	Profit (loss) for	s’ equity
		investment (EUR		the shares held the reporting year	(EUR
Company	Country	thousand)	by the Group	(EUR thousand)	thousand)
Snaige Ukraina TOB	Ukraine	26	99%	1	4
Almecha UAB	Lithuania	398	100%	55	174
Total		424

Snaige Ukraina TOB (Kiev, Ukraine) was established in 2002. Since the acquisition in 2002, the Company holds 99%

shares of this subsidiary. The subsidiary provides sales and marketing services in the Ukrainian market.

Almecha UAB (Alytus, Lithuania) was established on 9 November 2006. The main activities of the company are production

of refrigerating components and equipment.

The Group’s and the Company’s management approved these financial statements on 19 April 2023 The shareholders of

the Company have a statutory right to either approve these financial statements or not approve them and require the

management to prepare a new set of financial statements.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

2. Accounting principles

The principal accounting policies adopted in preparing the Group’s and the Company’s financial statements for 2022 are

as follows:

2.1. Basis of preparation of the financial statements

The financial statements of the Company and the are prepared in accordance with International Financial Reporting

Standards (IFRS) that have been adopted for use in the European Union.

Due to the rounding of individual amounts to thousands of euros in the tables, the figures may not coincide; such rounding

errors are insignificant in these financial statements.

These financial statements are prepared under the historical cost convention, except for property, plant and equipment,

which are carried at revalued amounts.

Adoption of new and/or changed IFRS and International Financial Reporting Interpretations Committee (IFRIC)

interpretations

Application of the Conceptual Framework to International Financial Reporting Standards (IFRS)

In the current year, the Company and the Group has adopted all of the new and revised Standards and Interpretations that

are relevant to its operations and effective for accounting periods beginning on 1 January 2021

(a) Standards, amendments and interpretations effective on or after 1 January 2022.

Amendments to IFRS 3 Business Combinations, IAS 16 Property, Plant and Equipment, IAS 37 Provisions,

Contingent Liabilities and Assets, and the 2018-2020 Annual Improvements to IFRSs (all published on 14 May 2020,

effective from 1 January 2022)

The IASB has issued the following amendments to narrow-scope IFRS standards:

• The amendments to IFRS 3 Business Combinations update the reference in IFRS 3 to the Conceptual

Framework for Financial Reporting without changing the accounting requirements for business combinations.

• The amendments to IAS 16 Property, Plant and Equipment prohibit an entity from deducting from the cost of

property, plant and equipment the proceeds from the sale of an item of property, plant and equipment while the

entity is preparing the asset for its intended use. Instead, the company will recognise such sales proceeds and

related costs in profit or loss in the statement of profit or loss and other comprehensive income.

• The amendments to IAS 37 Provisions, Contingent Liabilities and Assets specify the costs that an entity should

include in determining the cost of performing a contract to assess whether the contract is loss-making.

• The 2018-2020 annual improvements to IFRSs make minor changes to the illustrative examples in IFRS 1 First-

time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture

and IFRS 16 Leases.

These amendments are to be applied in the EU for annual periods beginning on or after 1 January 2022. Management has

assessed that these amendments do not have a material impact on these financial statements.

(b) Standards and amendments to standards that have been endorsed but have not yet entered into force and

have not been applied in advance

New standards, amendments and interpretations that are not effective for the period beginning 1 January 2022 and that

have not been previously adopted in the preparation of these financial statements are set out below:

Amendments to IFRS 17 and IFRS 4: Deferral of the effective date of IFRS 17 and IFRS 9 for insurers (published on

25 June 2020, effective from 1 January 2023, but not before EU endorsement)

The amendments to IFRS 17 shall be applied retrospectively for financial years beginning on or after 1 January 2023,

although earlier application is permitted. The amendments are intended to assist entities in applying this standard. In

particular, the amendments are designed to reduce costs by simplifying the application of some of the requirements of the

standard, simplifying the interpretation of financial results and the transition to the application of the standard by delaying

the effective date to 2023 and by providing an additional exemption that can be used for the first-time application of IFRS

17.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

The amendments to IFRS 4 change the expiry date of the temporary exemption from IFRS 9 Financial Instruments in IFRS

4 Insurance Contracts, after which entities would be required to apply IFRS 9 in financial years beginning on or after 1

January 2023.

Management has assessed that the application of these amendments will have no impact on the financial statements of

the Group and the Company.

IFRS 17 "Insurance Contracts" (published on 18 May 2017, effective from 1 January 2023 but not before EU

endorsement).

The Standard shall be applied for annual periods beginning on or after 1 January 2021, although earlier application is

permitted if IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments are also applied. At its

meeting in March 2020, the Board decided to postpone the effective date to 2023. IFRS 17 establishes principles for the

recognition, measurement, presentation and disclosure of insurance contracts entered into. It also requires similar

principles to apply to existing reinsurance contracts and investment contracts with elements of discretionary participation.

The aim is to ensure that entities report relevant information in a way that gives a fair presentation of those transactions.

On the basis of such information, users of financial statements can assess the impact of such transactions on the entity's

financial position, financial performance and cash flows when IFRS 17 is applied. This standard will not have an impact on

the financial position or performance of the Group and the Company because the Group and the Company do not provide

insurance services.

Amendments to IAS 12 Income Taxes - Deferred Tax on Assets and Liabilities Arising from a Single Transaction

(published on 7 May 2021, effective from 1 January 2023)

The amendments require entities to recognise deferred tax on transactions that create equal amounts of taxable and

deductible temporary differences at the time of initial recognition. The amendments are effective for financial years

beginning on or after 1 January 2023. Earlier application is permitted. The EU has not yet approved these amendments.

Management has not yet assessed the impact of applying these amendments.

Amendments to IAS 1 Presentation of Financial Statements and IFRS 2 Statement of Practice Disclosure of

Accounting Policies (Amendments) (published on 12 February 2021, effective from 1 January 2023)

The amendments are effective for annual periods beginning on or after 1 January 2023. Earlier application is permitted.

The amendments provide guidance for making significant accounting policy disclosure decisions. It should be noted that

the amendments to IAS 1 replace the requirement to disclose 'significant' accounting policies with a requirement to disclose

'material' accounting policies. In addition, the statement of practice provides guidance and an example to support the

application of the concept of materiality in deciding whether to disclose an accounting policy. Management has not yet

assessed the impact of applying these amendments.

Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and mistakes - Definition of

Accounting Estimates (published on 12 February 2021, effective from 1 January 2023)

The Amendments introduce a new definition of accounting estimates, which are defined as monetary amounts reported in

the financial statements that are subject to measurement uncertainty. The Amendments also clarify which and how changes

in accounting estimates differ from changes in accounting policies and corrections of mistakes. The amendments, which

are effective for financial years beginning on or after 1 January 2023 (earlier application is permitted), apply to changes in

accounting policies and accounting estimates that occur in that period or thereafter. The EU has not yet endorsed these

amendments. Management has not yet assessed the impact of applying these amendments.

Amendments to IAS 1 - Classification of liabilities as current or non-current' (published on 23 January 2020, effective

from 1 January 2023 but not before EU endorsement).

The amendments aim to promote consistent application of the requirements by helping companies to decide whether debts

and other liabilities with uncertain settlement dates should be classified as current or non-current in the statement of

financial position. The amendments affect the presentation of liabilities in the statement of financial position and do not

change the existing requirements relating to the measurement or recognition of assets, liabilities, income or expenses and

the disclosures that entities make about those items. The amendments also clarify the requirement to classify debts when

an entity can settle such debts using its own equity instruments. These amendments have not yet been approved by the

EU. Management has not yet assessed the impact of applying these amendments.

Amendments to IAS 1 Presentation of Financial Statements and IFRS 2 Statement of Practice Disclosure of

Accounting Policies (Amendments) (published on 12 February 2021, effective from 1 January 2023 but not before EU

endorsement) .

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

The amendments are effective for annual periods beginning on or after 1 January 2023. Earlier application is permitted.

The amendments provide guidance for making significant accounting policy disclosure decisions. It should be noted that

the amendments to IAS 1 replace the requirement to disclose 'significant' accounting policies with a requirement to disclose

'material' accounting policies. In addition, the Statement of Practice provides guidance and an example to support the

application of the concept of materiality in deciding whether to disclose an accounting policy. The EU has not yet endorsed

these amendments. Management has not yet assessed the impact of applying these amendments.

Amendments to IFRS 16 'Lease Liability on Sale and Leaseback', as amended, which clarifies how a seller-lessee

subsequently measures sale and leaseback transactions that meet the requirements of IFRS 15 to be accounted

for as a sale (published on 22 September 2022, effective from 1 January 2024, but not before EU endorsement).

The amendment to IFRS 6 on the sale and leaseback of a lease liability, which requires the seller-lessee to subsequently

measure the lease liability arising from the leaseback so that it does not recognise any amount of gain or loss in respect

of its right-of-use remains. The new requirements do not prohibit a vendor-lessee from recognising in profit or loss any gain

or loss arising on the partial or complete termination of a lease. The amendments are effective for financial years beginning

on or after 1 January 2024. Earlier application is also permitted. For sale and leaseback transactions entered into after the

date of initial application, a vendor-lessee shall apply the amendments retrospectively in accordance with IAS 8 Accounting

policies, changes in accounting estimates and mistakes. The EU has not yet endorsed these amendments. Management

has not yet assessed the impact of applying these amendments.

2.2. Going concern

These financial statements for the year 2022 have been prepared on the assumption that the Group and the Company will

be able to continue as a going concern for a period of not less than one year, evaluating the following assumptions and

risks:

- To finance working capital, the Company plans successful sales of finished products and to continue cooperation only

with reliable partners. Debts to suppliers are planned to be reduced from free circulating funds.

- In the opinion of the Company's and the Group's management, the impact of the military conflict in Ukraine which began

at the end of February 2022 (Note 32) is significant but not critical. Although, due to this conflict, the sale of the Company's

products in one of the largest markets (Ukraine) was temporarily stopped and is now limited, new product groups and the

Company's active actions will offset the negative impact of the war in other markets. War-related sanctions do not apply to

the company or its managers or shareholders.

- The Company's negative operating results and the related liquidity challenges caused by the increase in prices of raw

materials and energy resources and the decline in consumption expectations due to the war in Ukraine are temporary, and

the management of the Company and the Group expects to overcome them with the available resources. Not wishing to

risk the future of a viable and potential Company, and in order to secure the jobs and social security of its employees, the

management of the Company decided to initiate a process of restructuring of the Company (Note 33).

Management agrees that the above assumptions are affected by significant uncertainties that could cast significant doubt

upon the Company's ability to continue as a going concern, which would prevent the Company from realizing its assets

and meeting its obligations in the ordinary course of business. Nevertheless, and given the significant uncertainties,

management expects the Company to have sufficient resources to continue as a going concern in the foreseeable future.

Therefore, the Company has continued to apply the going concern principle in preparing these financial statements

2.3. Presentation currency

The Group’s financial statements are presented in the currency of the European Union, the euro (EUR), which is the

Company’s functional and the Group’s and the Company’s presentation currency. Transactions in foreign currencies are

initially recorded at the foreign currency exchange rate ruling at the date of the transaction. Monetary assets and liabilities

denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the statement of

financial position date. All differences are included in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange

rates as of the date of the initial transactions. Non-monetary items measured at fair value in a foreign currency are

translated using the exchange rates at the date when the fair value was determined. Any goodwill arising on the acquisition

of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the

acquisition are treated as assets and liabilities of the foreign entity and translated at the rate of exchange ruling at the

statement of financial position date.

The functional currency of a foreign entity Snaige Ukraina, TOB, is Ukrainian hryvnia (UAH). As at the reporting date, the

assets and liabilities of this subsidiary are translated into the presentation currency of Snaigė AB (EUR) at the rate of

exchange at the statement of financial position date and their items of the statement of profit or loss and other

comprehensive income are translated at the average monthly exchange rates for the reporting period. The exchange

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

differences arising on the translation are stated in other comprehensive income. On disposal of a foreign entity, the deferred

cumulative amount recognised in the shareholders’ equity caption relating to that particular foreign operation is transferred

to profit or loss. The performance results of the subsidiaries the control of which is lost are presented in the consolidated

financial statements only for the period when control belonged to the Group.

The applicable exchange rates in relation to euro as at the 31 December 2022 and 2021 were as follows:

	31 December 2022	31 December 2021
UAH	39.34128	30.99338
USD	1.0666	1.1334

All amounts in these financial statements are in EUR thousand unless otherwise stated.

2.4. Use of estimates in the preparation of financial statements

The preparation of the financial statements in accordance with IFRS, as adopted by the European Union, requires the

management to make judgements, estimates and assumptions that affect the application of policies and reported amounts

of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical

experience and various other factors that are believed to be reasonable under the circumstances. The results of the

estimates and assumptions form the basis of making judgements about carrying values of assets and liabilities that are

not readily apparent from other sources. Actual results may differ from the estimates. Estimates and underlying

assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which

the estimates are reviewed if they affect only this period, or in the period in which the estimates are reviewed and any

future periods if they affect both the review and future periods.

The significant areas of estimation used in the preparation of these financial statements relate to the fair value of property,

plant and equipment, estimated useful life time of the property, plant and equipment, recoverability of loans provided to the

shareholder and provisions related to guarantees and warrantees.

Fair value of the property, plant and equipment

Fair value of property, plant and equipment was determined by independent valuators, and management used this

valuation as sufficient basis for asset revaluation. The significant unobservable inputs used in the fair value determination

are disclosed in Note 13.

Useful life of property, plant and equipment

The main assumptions when evaluating useful life of property, plant and equipment are: the intensity of use and tear of

property, plant and equipment. Technical staff evaluated property, plant and equipment and indicated expected time of

further usage, and new, longer depreciation terms were applied together with assets revaluation.

Provisions

Recognition of provisions requires estimate of the probable outflow of economic benefits and defining the best estimate of

the expenditure required to settle the present obligation at the end of reporting period. The Group and the Company

estimate at the end of the reporting period if they have the present obligation from the past event, that should be registered

as a liability as at the end of reporting period.

Warrantees

The warranty provision relates primarily to production sold in 2022 and 2021, with a 2-year warranty from 2017 and a 5-

year warranty for promotional products. The provision is estimated on the basis of historical data related to the products.

Future events may occur which may cause the assumptions used in arriving at the estimates to change. The effect of any

changes in estimates will be recorded in the financial statements, when determinable.

2.5. Consolidation and Business Combinations

Business combinations are accounted for using the acquisition method. Acquisition cost is determined by adding the fair

value of the consideration at the date of acquisition and the amount of the non-controlling interest in the acquiree if any.

For each business acquisition, the acquirer shall measure the non-controlling interest in the acquiree either at fair value or

in proportion to the identifiable net assets of the acquiree. Acquisition costs incurred are written off to administrative costs.

If the business combination is carried out in stages, the acquirer's previously held interest in the acquiree is measured at

fair value at the acquisition date through the statement of comprehensive income. The contingent consideration that the

acquirer will have to pay is recognized at fair value at the acquisition date. Subsequent valuations of the contingent

consideration that is treated as an asset or liability will be recognized at fair value in accordance with IFRS 9: either through

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

profit/loss or as a change in other comprehensive income. If the contingent consideration is classified as equity, it is not

reassessed and its subsequent payment is accounted for in equity.

Goodwill is recognized at cost and is equal to the amount by which the total consideration, including the amount of the

non-controlling interest recognized, exceeds the net amount of the assets and liabilities acquired. If this consideration is

less than the fair value of the net assets of the subsidiary acquired, the difference is recognized in the statement of

comprehensive income.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses, and the date of the financial

statements is then assessed for impairment.

2.6. Investments in subsidiaries

Investments in subsidiaries are stated in the separate statement of financial position of the Compny at cost less impairment.

The acquisition cost is equal to the fair value of the consideration paid. An assessment of the carrying amount of an

investment for impairment is made when events or changes in circumstances indicate that the carrying amount of the

investment may exceed its recoverable amount. In such circumstances, the Company assesses the return on investment.

If the carrying amount of an investment exceeds its recoverable amount, the investment is written down to its recoverable

amount (the higher of fair value less costs to sell and value in use). Impairment is recognized in profit or loss under finance

costs.

Profit (loss) from disposal of investments is accounted for in profit or loss under financing activities.

2.7. Intangible assets, except for goodwill

Intangible assets are measured initially at cost. Intangible assets are recognised if it is probable that future economic

benefits that are attributable to the asset will flow to the Group and the Company and the cost of asset can be measured

reliably. After initial recognition, intangible assets are measured at cost less accumulated amortisation and any

accumulated impairment losses. Intangible assets are amortised on a straight-line basis over their estimated useful lives

(1–8 years).

The useful lives and amortisation method are reviewed annually to ensure that they are consistent with the expected

pattern of economic benefits from items in intangible assets other than goodwill.

Research and development

Research costs are expensed as incurred. Development expenditure on individual projects is recognised as an intangible

asset when the Group and the Company can demonstrate the technical feasibility of completing the intangible asset so

that it will be available for use or sale, their intention to complete and their ability to use or sell the asset so that the asset

will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably

the expenditure during development.

Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to

be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins

when development is complete and the asset is available for use. It is amortised over the period of expected future benefit.

Amortization periods from 1 to 8 years are applied. During the period of development, the asset is tested for impairment

annually.

Licenses

Amounts paid for licences are capitalised and amortised over their validity period.

Software

The costs of acquisition of new software are capitalised and treated as an intangible asset if these costs are not an integral

part of the related hardware. Software is amortised over a period not exceeding 3 years.

Costs incurred in order to restore or maintain the future economic benefits that the Group and the Company expect from

the originally assessed standard of performance of existing software systems are recognised as an expense when the

restoration or maintenance work is carried out.

The Company and the Group have no intangible assets with indefinite useful lifetime.

2.8. Property, plant and equipment, investment property

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Property, plant and equipment are shown at revalued amount, being the fair value at the date of the revaluation less any

subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are made with

sufficient regularity such that the carrying amount does not differ materially from that which is determined using fair value

at the date of statement of financial position. The fair value of the property, plant and equipment is determined by appraisals

undertaken by certified independent valuators. Any accumulated depreciation and impairment losses at the date of

revaluation were eliminated against the gross carrying amount of the asset, instead the historical acquisition cost was

increased by the surplus of the revaluation.

Increases in the carrying amount arising on revaluation of property, plant and equipment are credited to other

comprehensive income and shown as revaluation reserve in shareholders’ equity. The revaluation reserve for property,

plant and equipment is being reduced each period by the difference between depreciation based on the revalued carrying

amount of the asset and that based on its original cost, which is transferred directly to retained earnings.

The carrying amounts of property, plant and equipment are reviewed for impairment when events or changes in

circumstances indicate that the carrying amount may not be recoverable. Decreases that offset previous increases of the

same asset are charged to other comprehensive income and debited against revaluation reserve in equity; all other

decreases are charged to the profit or loss. Revaluation increases that offset previous decreases charged to the profit or

loss are recognised in the profit or loss.

Each year the difference between depreciation based on the revaluated carrying amount of the asset charged to the profit

or loss, and depreciation based on the asset’s original cost is transferred from revaluation reserve to retained earnings net

of deferred income tax.

Subsequent costs are included in the asset’s carrying amount only when it is probable that future economic benefits

associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount

of the replaced part is derecognised. All other repairs and maintenance are charged to the profit or loss during the financial

period in which they are incurred.

Depreciation is computed on a straight-line basis over the following estimated useful lives from 1 October 2016:

Buildings and structures (incl. investment property) 15–73 years,

Machinery and equipment 5–63 years,

Vehicles 4–20 years,

Other property, plant and equipment 3–30 years.

Weighted average useful lives from 1 October 2016 are as follows:

Buildings and structures (incl. investment property) 55 years,

Machinery and equipment 21 years,

Vehicles 16 years,

Other property, plant and equipment 12 years.

The asset's carrying amounts, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each

financial year end.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount of property, plant and

equipment and are recognised within other income or other expenses in the statement of comprehensive income. When

revalued assets are sold, the amounts included in revaluation reserve are transferred to retained earnings.

Borrowing costs that are directly attributable to the acquisition, construction or production of non-current assets are

capitalised, otherwise – expensed as incurred. No borrowing costs were capitalised in 2022 and 2021.

2.9. Inventories

Inventories are valued at the lower of cost or net realisable value, after write-down of obsolete and slow moving items. Net

realisable value is the selling price in the ordinary course of business, less the costs of completion, marketing and

distribution. Cost is determined by the first-in, first-out (FIFO) method. The cost of finished goods and work in progress

includes the applicable allocation of fixed and variable overhead costs based on a normal operating capacity. Unrealisable

inventory is fully written-off.

2.10. Cash and cash equivalents

Cash and cash equivalents are carried at par value.

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand and in a bank, demand

deposits with banks and other highly liquid short-term investments with original maturities of up to 3 months.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

2.11. Financial assets and financial liabilities

IFRS 9 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset to one entity and a financial liability or equity

instrument to another.

a) Financial assets

Initial recognition and evaluation:

Financial assets are initially allocated at amortized cost, at fair value through other comprehensive income, or at fair value

through profit or loss.

Assigning financial assets at initial recognition depends on the contractual cash flow characteristics of the financial asset

and the Group/Company's business model that defines the management of the financial asset. Except for trade receivables

and contract assets that do not have a significant funding component, the Group/Company recognizes financial assets at

fair value through initial recognition plus, when financial assets are not measured at fair value through profit or loss,

transaction costs. Trade receivables and contract assets that do not include a significant funding component are measured

at the transaction price determined in IFRS 15.

For a financial asset to be designated and measured at amortized cost or fair value through other comprehensive income,

the cash flows arising from the financial asset should be only principal and interest payments (SPPI) on the principal

uncovered amount. This assessment is called the SPPI test and is performed for each financial instrument.

The Group/Company's financial asset management model specifies how the Group/Company manages its financial assets

to generate cash flows. The business model determines whether cash flows will be generated by collecting contractual

cash flows, by selling this financial asset or by using both options.

Ordinary purchases or sales of financial assets are recognized on the trade date, i.e. the date the Group/Company

undertakes to purchase or sell the financial asset.

Subsequent evaluation

After initial recognition, the Company/Group assesses financial assets:

a) Amortized cost (debt financial instruments);

b) At fair value through other comprehensive income when the cumulative gain or loss after the derecognition is

transferred to profit or (loss) (debt financial instruments). As of 31 December 2022 and 2021, the Group/Company

did not have such instruments;

c) Fair value through other comprehensive income when the cumulative gain or loss on discontinuance is not transferred

to profit or (loss) (equity). As of 31 December 2022 and 2021, the Group/Company did not have such instruments;

d) At fair value through profit or loss.

Financial assets at amortized cost (debt financial instruments)

The Group/Company assesses financial assets at amortized cost if both of the following conditions are met:

i) Financial assets are considered to be a business model designed to hold financial assets to collect contractual cash

flows; and

ii) Due to contractual terms of financial assets, cash flows that occur only on the principal amount and on the principal

outstanding amount may arise on specified dates.

Financial assets at amortized cost are subsequently measured using the effective interest rate method (EIR) less

impairment losses. Gains and losses are recognized in the statement of comprehensive income when the asset is

derecognised, the asset is replaced or impaired.

The Group/Company's financial assets at amortized cost include trade receivables, other current and non-current

receivables, loans issued, and assets arising from customer contracts (if any).

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading, financial assets classified as at

fair value through profit or loss, or financial assets at fair value through initial recognition. Financial assets are classified

as held for trading if they are acquired for the purpose of selling or repurchasing in the near future. Derivatives, including

segregated embedded derivatives, are also classified as held for trading unless they are classified as effective hedging

instruments (in accordance with IFRS 9). Financial assets related to cash flows that are not only principal and interest

payments are classified and measured at fair value through profit or loss, irrespective of the business model.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Notwithstanding the criteria described above, under which debt instruments are classified as amortized cost or fair value

through other comprehensive income, debt instruments may be classified as at fair value through profit or loss at initial

recognition if it eliminates or significantly reduces accounting inconsistencies. Financial assets are carried at fair value

through profit or loss in the statement of financial position at fair value through profit or loss in the statement of

comprehensive income.

Impairment of financial assets

In accordance with IFRS 9, the Group/Company generally recognizes expected credit loss (ECL) for all debt instruments

that are not measured at fair value through profit or loss. The ECL is based on the difference between the contractual

receivables and cash flows expected to be received by the Group/Company, discounted at an approximate initial effective

interest rate. ECL is recognized in two stages. For credit exposures whose credit risk on initial recognition is not materially

increased, ECL is calculated for credit losses arising from default events occurring within the next 12 months (12-month

ECL). For those credit exposures that have significantly increased their credit risk from initial recognition, the impairment

loss is formed for the amount of credit losses expected during the remaining life of the credit exposure, irrespective of the

maturity (ECL).

(a) Evaluation of impairment of trade receivables

The Group/Company uses the simplified method for calculating ECL for trade receivables and assets arising from contracts

with customers. Therefore, the Group/Company does not observe changes in credit risk but recognizes impairment for

each financial statement date on the basis of the validity of the ECL. The Group/Company has created a matrix of expected

loss rates based on historical credit loss analysis and adjusted to reflect future factors specific to debtors and the economic

environment. The Group/Company considers that the debtor has failed to fulfil its obligations relating to financial assets if

the contractual payments are overdue, or when there are indications that the debtor or group of debtors are experiencing

severe financial difficulties, default (principal or interest), that they will initiate bankruptcy or reorganization procedures,

and in cases where the observed data suggest a reduction in future cash flows, such as changes in the past due to arrears

or changes in economic conditions that correlate with default. Financial assets are derecognised when there is no

reasonable expectation of recovering contractual cash flows.

The Company/Group also calculates impairment individually by assessing the debt position separately by the debtor. The

Company has determined that the average level of historically unpaid bad debts is less than 0% of its outstanding debt.

For this reason, and having assessed future estimates, the Company has not changed the principles for calculating the

current loss matrix.

b) Evaluation of impairment of loans granted

The Company grants loans to Group companies with a maturity term as disclosed in Note 14. In the case of a loan, in

general, the expected credit loss for 12 months is assessed and accounted for. In subsequent reporting periods, in the

absence of a significant increase in the credit risk associated with the debtor, the Company adjusts the balance of 12-

month expected credit loss on the outstanding loan amount outstanding at the valuation date. Having determined that the

debtor’s financial situation has significantly deteriorated compared to the situation at the time of the loan, the Company

accounts for all expected credit losses during the loan term .

b) Financial liabilities

Initial recognition and evaluation:

Financial liabilities at initial recognition are classified as financial liabilities at fair value through profit or loss, loan

receivables and payables. All financial liabilities at initial recognition are recognized at fair value and, for loans and

receivables, less directly attributable transaction costs. The Group/Company's financial liabilities include trade and other

payables, loans received, including bank overdrafts and financial leasing liabilities, and financial derivatives.

Subsequent evaluation

The measurement of financial liabilities depends on their classification as described below.

Financial liabilities are carried at fair value through profit or loss

Financial liabilities carried at fair value through profit or loss include financial liabilities held for trading and financial liabilities

designated at fair value through profit or loss at initial recognition valuating through profit or loss. Financial liabilities are

classified as held for trading if they are held for repurchase purposes in the near future. This category also contains

derivatives of Group/Company, not classified as hedge derivatives under IFRS 9. Individual embedded derivatives are also

classified as held for trading unless they are classified as effective hedging instruments. Gains or losses arising from

financial liabilities held for trading are recognized in the statement of comprehensive income.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Loans received and other amounts due

After initial recognition, loans and other payables are carried at amortized cost using the effective interest rate method

(EIR). Gains and losses are recognized in the statement of comprehensive income when the liabilities are derecognised

or amortized. Amortized cost is calculated by reference to the discount or premium on the acquisition, as well as taxes or

costs that are an integral part of the EIR. EIR amortization is included in financial expenses in the statement of

comprehensive income.

Coverage of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if

there is an enforceable right to settle the amounts recognized and is intended to be settled net, i.e. to realize the assets

and fulfil their obligations at the same time.

Derecognition of financial assets and financial liabilities

Financial asset

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is

derecognised (i.e. it is derecognised from the financial statements of the Group/Company) when:

i) the contractual rights to the cash flows of the financial asset expire; or

ii) the Group/Company transfers the contractual rights to receive cash flows from financial assets; or assumes the

obligation to pay all cash flows received to the third party without a significant delay in the transfer agreement; or

(b) the Group/Company neither transfers nor retains substantially all the risks and rewards of ownership of the

financial asset, but disposes of control of that financial asset.

Financial liabilities

A financial liability is derecognised when it is settled, cancelled or expires. When one existing financial liability is replaced

by another liability to the same lender but in other circumstances, or when the terms of an existing obligation are

substantially changed, such a change is considered to be a termination of the original liability and a new liability occurs.

The difference between the respective carrying amounts is recognized in the statement of comprehensive income.

2.12 Authorized capital

(a) Ordinary shares

Ordinary shares are stated at their nominal value. The amount by which the consideration received for the shares sold

exceeds their nominal value is recognized as share premium. Additional external costs directly related to the issue of new

shares are accounted for by reducing the share premium.

(b) Own shares

When the Company or its subsidiaries acquire the Company's equity, the consideration paid, including any additional

external costs attributable to it, is deducted from equity as own shares until they are sold, reissued or cancelled. No gain

or loss on the sale, issue or cancellation of own shares is recognized. If such shares are subsequently sold or reissued,

the consideration received is recorded in the consolidated financial statements as a change in equity.

The legal reserve is mandatory under the laws of the Republic of Lithuania. Annual transfers of 5%. The net result is

required until the reserve reaches 10% of the authorized capital. The legal reserve cannot be used to pay dividends, and

it is determined only to cover future losses.

(d) Revaluation reserve

The revaluation reserve is recognized in other comprehensive income and is included in the revaluation reserve in equity.

In cases where the revalued amount of the revalued asset exceeds the carrying amount of that asset and previously

recognized an impairment loss on that asset in the statement of comprehensive income as a loss, the revaluation increase

in excess of previous depreciation is recognized in the statement of comprehensive income as profit. If, after the reversal,

the revaluation surplus is still present, it is accounted for as other comprehensive income in the statement of comprehensive

income (and in the statement of financial position in equity).

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

The revaluation of revalued assets equivalent to the depreciation of the revalued assets of the current year on the revalued

amount is carried forward to retained earnings in the statement of changes in equity at the end of the financial year. When

transferring or reversing revalued assets, the related revaluation surplus is transferred to retained earnings in the statement

of changes in equity.

(e) Reserve for own shares

This reserve is created on the basis of the shareholders' decision to acquire their own shares.

(f) Foreign exchange translation reserve

Foreign currency translation reserve is formed by currency translation differences arising from the consolidation of financial

statements of foreign subsidiaries. Currency translation differences in the consolidated financial statements are recognized

in equity until the investment is sold. When the relevant asset is sold, the cumulative revaluation surplus is recognized as

income or expense in the same period in which the gain or loss on sale is recognized.

2.13. Lease

(a) the Company and the Group is the lessee

Policy, adopted from 1 January 2019.

At the beginning of the contract, the Company and the Group assess whether the contract is a lease or includes a lease.

This means assessing whether the contract confers a right to manage the use of the identified asset for a period of time in

return for remuneration.

The Company and the Group apply a single recognition and measurement method to all leases, except for short-term and

low-value leases. The Company and the Group recognize a lease obligation to pay lease payments and a right-of-use

asset that entitles the holder to use the leased asset.

Assests managed under lease right

The Company and the Group recognize the right-of-use asset at the inception date (ie the date from which the underlying

asset is available for use). Assets held under usable rights are carried at cost less any accumulated depreciation and any

accumulated impairment losses. The cost of an asset held for use includes the amount of the initial measurement of the

lease liability, the initial direct costs, the lease payments at or before the inception date, less any lease incentives received.

Depreciation is calculated on a straight-line basis over the lease term or over the estimated useful lives of the assets,

whichever is shorter:

Land 58 years

Vehicles 3 years

If the ownership of the leased property is transferred to the Company and the Group before the end of the lease term or if

the price of the asset managed by the right of use indicates that the lessee will exercise the call option, depreciation is

calculated based on the estimated useful life of the asset.

Assets held for use are also assessed for impairment.

Lease obligations

At the beginning date, the Company / Group recognizes lease liabilities at the present value of the lease payments due

during the lease term. Lease payments include fixed payments (including equivalent payments) less any rental incentives

receivable, variable rents that depend on an index or rate, and amounts that would be payable under residual value

guarantees. Such lease payments also include the exercise price of the call option if it is reasonably known that the

Company / Group will exercise that option, and penalties for terminating the lease if it is assumed that the Company /

Group will exercise the option to terminate the lease during the lease term. Variable lease payments that are independent

of an index or a rate are recognized as an expense (unless they are incurred to produce inventories) in the period in which

the event occurs or the condition that gives rise to the tax arises.

In calculating the present value of the lease payments, the Company / Group applies the borrowing rate accrued at the

beginning of the lease, as the interest rate specified in the lease cannot be readily determined. After the commencement

date, the amount of the lease liability is increased by the estimated interest and the amount of lease payments paid is

reduced. In addition, the carrying amount of a lease is remeasured if certain adjustments are made, the lease term or lease

payments change (for example, changes in future lease payments due to a change in the index or rate used to determine

such lease payments) or a change in the option to purchase the lease. evaluation.

Short-term and low-value property lease

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

The Company and the Group apply the recognition exemption to their current assets (ie leases with a term of less than 12

months at the inception date that do not include an option to purchase the asset). It also observes this exception by

recognizing the lease of low-value assets consisting of office inventory. Lease payments for short-term and low-value

assets are recognized as an expense on a straight-line basis over the lease term.

b) Lease – the Company and the Group are the lessee or the lessor

As a lessor, the Company and the Group determine at the begining of a lease whether the contract is a finance lease or

an operating lease. If the Company and the Group determine that substantially all the risks and rewards of ownership of a

leased asset are transferred under a lease, it classifies the lease as a finance lease. Leases under which the Company

and the Group do not transfer substantially all the risks and rewards incidental to ownership of a leased asset are classified

as operating leases. Lease income is recognized on a straight-line basis over the term of the lease and is recognized in

the statement of comprehensive income on a straight-line basis over the term of the lease. Initial direct costs incurred in

negotiating and arranging a lease shall be included in the carrying amount of the leased asset and recognized as an

expense over the lease term on the same basis as the lease income. Contingent contributions are recognized as income

in the period in which they are earned.

The Group's accounting policies as a lessee for the comparative period did not differ from the requirements of IFRS 16.

2.14. Grants and subsidies

Grants and subsidies (hereinafter “the grants”) received in the form of non-current assets or intended for the purchase,

construction or other acquisition of non-current assets are considered as asset-related grants (mainly received from the

EU and other structural funds). Assets received free of charge are also allocated to this group of grants. The amount of

the grants related to assets is recognised in the financial statements as used in parts according to the depreciation of the

assets associated with this grant. In profit or loss, a relevant expense account is reduced by the amount of grant

amortisation.

Grants received as a compensation for the expenses or unearned income of the current or previous reporting period, also,

all the grants, which are not grants related to assets, are considered as grants related to income. The income-related

grants are recognised as used in parts to the extent of the expenses incurred during the reporting period or unearned

income to be compensated by that grant.

2.15. Provisions

Provisions are recognised when the Group and the Company have a present obligation (legal or constructive) as a result

of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the

obligation and a reliable estimate can be made of the amount of the obligation. The provisions are reviewed at each date

of the statement of financial positions and adjusted in order to present the most reasonable current estimate. If the effect

of the time value of money is material, the amount of provision is equal to the present value of the expenses, which are

expected to be incurred to settle the liability. Where discounting is used, the increase in the provision due to the passage

of time is recognised as interest expenses.

2.16. Employee benefits

(a) Social security contributions

The Company and the Group pay social security contributions to the State Social Insurance Fund (hereinafter referred to

as the Fund) for its employees in accordance with the defined contribution plan and in accordance with the requirements

of national law. The defined contribution plan is a plan by which the Company and the Group pays a fixed contribution and

will in the future have no legal or constructive obligation to continue to pay these contributions if the Fund does not have

sufficient assets to pay all employees benefits related to the service in current or past periods. Social security contributions

are recognized as an expense on an accrual basis, and attributed to employee costs.

(b) Bonus plans

The Company and the Group recognize a liability and an expense for bonuses when it has a contractual liability or a past

practice that has created a constructive liability.

According to the requirements of the Labour Code of the Republic of Lithuania, every employee leaving the Company at

the age of retirement is entitled to a one-off payment, which amounts to 2-month period salary.

Commitments to employees for the current year are recognized as an expense immediately in the statement of

comprehensive income. Expenses previously incurred are recognized as an expense in the average over the period until

the payment becomes mandatory.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Any gain or loss arising from the amendment (reduction or increase) of the benefit conditions is recognized immediately in

the statement of comprehensive income.

Employee benefits liability is calculated on the basis of actuarial estimates using the projected unit credit method.

Reassessments consisting of actuarial gains and losses are recognized immediately in the statement of financial position

with the corresponding debit or credit in retained earnings in other comprehensive income in the period in which they occur.

Reassessments in subsequent periods are not carried forward to profit or loss.

The liability is recorded in the statement of financial position and reflects the present value of those benefits at the date of

the statement of financial position. The present value of employee benefits obligations is determined by discounting the

estimated future cash flows on the basis of the interest rate on government securities denominated in the same currency

as the benefits and the payout period similar to the expected payout period.

2.17. Income tax

Group companies are taxed individually regardless of the Group's overall performance.

Income tax expense recognized in these financial statements is determined on the basis of management's estimates in

accordance with the tax laws of the Republic of Lithuania and the Republic of Ukraine.

The profit of the Group companies operating in Lithuania for the year 2022 is subject to a 15% corporate income tax rate

(15% in 2021). In Ukraine, corporate income tax is 18% (18% in 2021).

According to the tax laws of the Republic of Lithuania, tax losses other than losses related to the transfer of securities

and/or financial instruments may be carried forward for an indefinite period. Tax losses carried forward from 1 January

2014 may not exceed 70% of taxable profit for the current year.

Losses on the sale of securities and/or derivative financial instruments may be carried forward for 5 years and are used

only to reduce taxable profits from similar transactions.

As of 1 January 2012, tax losses carried forward under the tax laws of the Republic of Ukraine may not exceed 25% of the

taxable profit for the current year.

Deferred income tax

Deferred income tax is accounted for using the liability method for temporary differences arising between the tax bases of

assets and liabilities, and their carrying amounts in the consolidated financial statements. However, deferred income tax

is not recognized if it arises from the initial recognition of assets or liabilities other than those resulting from a business

combination that at the time of the transaction had no effect on either accounting or taxable profit or loss. Deferred income

tax is calculated using tax rates (and laws) approved or substantially enacted at the date of the financial statements that

are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which

the temporary differences can be utilized.

Deferred income tax is recognized for temporary differences arising on investments in subsidiaries, except when the Group

controls the timing of the elimination of the temporary difference and it is probable that the temporary difference will not

disappear in the near future.

2.18. Revenue recognition

Revenue from Contracts with Customers

Revenue from contracts with customers is recognized when the control of the goods or services passes to the customer,

the amount the Company and the Group expect to receive in exchange for the goods or services. The Company and the

Group have determined that they control goods or services before they are transferred to the customer, therefore the

Company and the Group act as the principal party to the income transaction.

The Company and the Group allocate the transaction price over the production period of the product based on the relative

selling prices of the individual production levels.

Management has performed an analysis and determined that the Company and the Group meet their operating obligations

under contracts with customers during the period (rather than at a specific point in time) for the following reasons:

- The Company and the Group do not create alternative assets by providing product manufacturing services;

- The Company and the Group have an executive right to remuneration for the partial production work performed.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

In calculating the portion of revenue and its cost, management relies on the expected cost method, adding the expected

margin. Based on the management and production accounting data, the state of the production of the order at each stage

of production is deducted (in the Company, respectively, calculating the share of the expected cost of the product at which

stage of production is achieved). The calculations are completed by adding the applicable margin to the estimated relative

work-in-progress at the various stages of production. The amount of revenue so calculated is recognized and recognized

in the statement of comprehensive income under in current assets, in the contractual asset item. The cost associated with

this amount of revenue is recognized in the statement of comprehensive income under cost of sales.

The preparation of financial statements in conformity with IFRS and the application of IFRS 15 requires management and

the Group to apply certain assumptions and estimates that have a significant effect on the amounts presented in the

financial statements. In the opinion of management, the most significant estimates and related uncertainties in the

calculation and recognition of revenue from contracts with customers relate to:

- The expected profit margin of the product is used (percentage);

- The application of historical management and production accounting data to calculate the value factors associated with

each stage of production.

In addition to those discussed above, management also considered the impact of other matters on revenue recognition,

such as the presence of significant financing components, non-cash settlements, and so on.

The Company's and the Group's contracts with customers do not contain these listed contractual terms or, in the opinion

of management, are insignificant in the context of the application of IFRS 15.

Dividend distribution

Dividend distribution to the Company's shareholders is recognized as a liability in the Company's and the Group's financial

statements in the period in which the dividends are approved by the Company's shareholders.

2.19. Contingencies

Contingent liabilities are not recognized in the financial statements. They are disclosed in the financial statements unless

the possibility of an outflow of resources embodying economic benefits is remote.

Contingent assets are not recognized in the financial statements but are disclosed when it is probable that future economic

benefits potentially will flow to the entity.

2.20. Subsequent events

Subsequent events that provide additional information about the Group’s and the Company’s position at the date of the

statement of financial position (adjusting events) are reflected in the financial statements. Subsequent events that are not

adjusting events are disclosed in the notes when material.

2.21. Offsetting and comparative figures

When preparing the financial statements, assets and liabilities, as well as revenue and expenses are not set off, except

the cases when a certain International Financial Reporting Standard specifically requires such set-off.

2.22. Segments

An operating segment is a component of the Group and the Company that engages in business activities from which it

may earn revenues and incur expenses. An operating segment’s operating results are reviewed regularly by management

of the Group and the Company to make decisions about resources to be allocated to the segment and assess its

performance, and for which discrete financial information is available.

Segment results that are reported to management include items directly attributable to a segment as well as those that can

be allocated on a reasonable basis.

2.23. Earnings per share

The Group present basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by

dividing the profit or loss attributable to ordinary shareholders of the Group by the weighted average number of ordinary

shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to the Group’s

shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential

ordinary shares, such as the impact of convertible notes and share options transactions.

2.24. Fair value measurement

Some of the Group’s and the Company’s accounting policies and disclosures require the determination of fair value, for

both financial and non-financial assets and liabilities.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between

market participants at the measurement date in the principal, or in its absence, the most advantageous market to which

the Group and the Company have access at that date. The fair value of a liability reflects its non-performance risk.

When measuring the fair value of an asset or a liability, the Group and the Company use market observable data as far as

possible. Fair values are categorised within different levels in a fair value hierarchy based on the inputs used in the valuation

techniques as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly

(i.e. as prices) or indirectly (i.e. derived from prices);

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorised within different levels of the fair

value hierarchy, the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the

lowest level input that is significant to the entire measurement.

The Group and the Company recognize transfers between levels of the fair value hierarchy at the end of the reporting

period during which the change has occurred.

Fair values have been determined for measurement and / or disclosure purposes based on the described methods. Where

applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to

that asset or liability (related note).

2.25 Classification into short-term and long-term

In the financial statements, the Group and the Company present assets and liabilities by classifying them into current and

non-current.

An asset is considered current if:

• It is expected to be sold or sold or consumed in the ordinary course of business

• Held for sale

• Expected to be realized within 12 months after the end of the financial year

• Cash or cash equivalents, except for limited uses, that will not be able to settle or settle liabilities in the next 12 months.

All other assets are classified as non-current.

A liability is current if:

• It is expected to be paid during the normal operating cycle

• Held for sale

• It is expected to be paid within 12 months after the end of the financial year

• There is no unconditional right to defer payment for at least 12 months after the end of the financial year.

The Group and the Company classify all other liabilities as non-current. Deferred income tax assets and liabilities are

classified as non-current assets and non-current liabilities.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

NOTES TO THE EXPLNATORY STATEMENT

3. Revenue from customer contracts and sale revenue

The Group

The Group’s sole business segment identified for the management purposes is the production of refrigerators and

specialised equipment.

		Group		Company
	2022	2021	2022	2021
Refrigerators and related equipment	21,220	33,538	20,359	32,852
	21,220	33,538	20,359	32,852

The Group’s and the Company’s management analyses only sales information per country.

	Total		Inter-group sales		Sales revenue
	sales revenue
	2022	2021	2022	2021	2022	2021
Western Europe	10,870	15,433	-	-	10,870	15,433
Ukraine	1,521	3,660	-	-	1,521	3,660
Central Europe	5,102	6,731	-	-	5,102	6,731
Lithuania	2,992	4,893	(226)	(289)	2,766	4,604
Other CIS countries	381	652	-	-	381	652
Other Baltic states	179	546	-	-	179	546
Russia	-	441	-	-	-	441
Other countries	401	1,471	-	-	401	1,471
Total	21,446	33,827	(226)	(289)	21,220	33,538

Transactions between the group companies are made on commercial terms and conditions. Inter-group sales are

eliminated on consolidation.

The Company

		Sales
	2022	2021
Western Europe	10,870	15,427
Ukraine	1,521	3,660
Central Europe	5,102	6,732
Lithuania	1,906	3,923
Other CIS countries	381	652
Other Baltic states	178	546
Russia	-	441
Other countries	401	1,471
	20,359	32,852

4. Cost of sales

		Group	Company
	2022	2021	2022	2021
Raw materials	14,821	21,079	14,617	20,704
Salaries and wages	2,250	3,426	2,046	3,365
Depreciation and amortisation	1,264	1,466	1,234	1,435
Other indirect costs	3,494	4,318	3,299	4,276
	21,829	30,289	21,196	29,780

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

5. Selling and distribution expenses

		Group		Company
	2022	2021	2022	2021
Transportation	642	1,037	642	1,037
Salaries and social security	393	540	393	540
Market research, sales promotion and commissions to third parties	149	446	150	459
Advertising, marketing	44	258	44	257
Warranty service expenses	72	155	72	162
Rent of warehouses and storage expenses	51	58	51	58
Certification expenses	41	46	41	46
Insurance	27	33	27	33
Business trips	2	14	2	14
Other	(69)	49	(69)	49
	1,352	2,636	1,353	2,655

6. General and administrative expenses

		Group		Company
	2022	2021	2022	2021
Salaries and social security	1,456	1,171	1,348	1,085
Depreciation and amortisation	323	346	323	346
Rent and utilities	168	146	169	146
Bank services	49	75	48	74
Insurance	58	58	58	56
Non-current employee benefits	(50)	70	(47)	53
Taxes, other than income tax	30	28	30	28
Consultants' costs	42	16	42	14
Business trips	4	7	4	7
Security costs	5	8	5	7
Impairment of intangible fixed assets	210	-	210	-
Impairment of property, plant and equipment	61	(63)	62	(33)
Subsidies received for job preservation	-	(69)	-	(42)
Downtime subsidies received	-	(49)	-	(49)
Change in the impairment allowance for receivables	255	(115)	255	(115)
Other	754	475	726	413
	3,365	2,104	3,233	1,990

7. Other income

		Group		Company
	2022	2021	2022	2021
Income from transportation services	93	359	93	359
Income from sale of other services	121	79	228	171
Income from rent of premises	38	26	57	35
	252	464	378	565

8. Other expenses

		Group		Company
	2022	2021	2022	2021
Transportation expenses	92	377	92	377
Other services	70	65	137	112
Other	-	-	16	16
	162	442	245	505

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

9. Finance income

		Group		Company
	2022	2021	2022	2021
Foreign currency exchange gain	2	56	2	56
Other	6	8	6	8
	8	64	8	64

10. Finance costs

		Group		Company
	2022	2021	2022	2021
Interest expenses	502	477	502	477
Loss of foreign currency translation transactions	-	12	-	12
Other expenses	6	54	6	54
	508	543	508	54 3

11. Income tax

		Group		Company
Components of the income tax (expense) income	2022	2021	2022	2021
Deferred income tax income (expenses)	566	(26)	578	(26)
Income tax income (expenses) recorded in profit or loss from continuing operations	566	(26)	578	(26)

	As at 31	As at 31	As at 31	As at 31
	December	December	December	December
Deferred income tax asset	2022	2021	2022	2021
Impairment allowance for receivables and write-down of inventories	85	86	85	93
Accrued liabilities	36	52	33	48
Warranty provisions	36	45	36	45
Other	-	(30)	-	(30)
Deferred income tax asset	157	153	154	156
Less: not recognised part
Deferred income tax asset, net	157	153	154	156
Deferred income tax liability
Revaluation of property, plant and equipment	(1,010)	(1,391)	(1,010)	(1,391)
Capitalised development costs	(210)	(390)	(205)	(404)
Deferred income tax liability	(1,220)	(1,781)	(1,215)	(1,795)
Deferred income tax, net	(1,063)	(1,628)	(1,061)	(1,639)

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

35 12. Intangible assets Group		Software,
Cost:	Development cost	licenses	Total
Balance as at 1 January 2022	7,052	682	7,734
Additions	264	1	265
Disposals and write-offs	(209)	(4)	(213)
Reclassification	-	-	-
Depreciation	-	-	-
Balance as at 31 December 2022	7,107	679	7,786
Amortisation:
Balance as at 1 January 2022	5,492	675	6,167
Charge for the year	275	3	278
Disposals and write-offs	-	(4)	(4)
Reclassification	-	-	-
Balance as at 31 December 2022	5,767	674	6,441
Carrying amount as at 31 December 2022	1,340	5	1,345
Carrying amount as at 1 January 2022	1,560	7	1,567
		Software,
Cost:	Development cost	licenses	Total
Balance as at 1 January 2021	6,808	770	7,578
Additions	319	6	325
Disposals and write-offs	-	-	-
Reclassification	(75)	(94)	(169)
Depreciation	-	-	-
Balance as at 31 December 2021	7,052	682	7,734
Amortisation:
Balance as at 1 January 2021	5,279	762	6,041
Charge for the year	288	7	295
Disposals and write-offs	-	-	-
Reclassification	(75)	(94)	(169)
Balance as at 31 December 2021	5,492	675	6,167
Carrying amount as at 31 December 2021	1,560	7	1,567
Carrying amount as at 1 January 2021	1,529	8	1,537

Total amount of amortisation expenses is included into general and administrative expenses in the statement of

comprehensive income.

Part of the Group's intangible non-current assets with an acquisition value of EUR 5,296 thousand were fully amortised as

at 31 December 2022 (EUR 5,160 thousand as at 31 December 2021), but are still used in operations.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

36 12. Intangible assets (continued) Company
	Development cost	Software, licenses	Total
Cost:
Balance as at 1 January 2022	7,051	648	7,699
Additions	264	-	264
Disposals and write-offs	(209)	(4)	(213)
Balance as at 31 December 2022	7,106	644	7,750
Amortisation:
Balance as at 1 January 2022	5,491	641	6,132
Charge for the year	275	3	278
Disposals and write-offs	-	(4)	(4)
Balance as at 31 December 2022	5,766	640	6,406
Carrying amount as at 31 December 2022	1,340	4	1,344
Carrying amount as at 1 January 2022	1,560	7	1,567
	Development
	cost	Software, licenses	Total
Cost:
Balance as at 1 January 2021	6,731	643	7,374
Additions	320	5	325
Disposals and write-offs	-	-	-
Balance as at 31 December 2021	7,051	648	7,699
Amortisation:
Balance as at 1 January 2021	5,203	634	5,837
Charge for the year	288	7	295
Disposals and write-offs	-	-	-
Balance as at 31 December 2021	5,491	641	6,132
Carrying amount as at 31 December 2021	1,560	7	1,567
Carrying amount as at 1 January 2021	1,528	9	1,537

Total amount of amortisation expenses is included into administrative expenses in the statement of comprehensive income.

Part of the Company's intangible non-current assets with an acquisition value of EUR 5,261 thousand were fully amortised

at 31 December 2022 (EUR 5,160 thousand at 31 December 2021), but are still used in operations

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

13. Property, plant and equipment

	Land,	Machinery		Construction
Group	buildings	and	Vehicles and	in progress	Total
	and		other	and
Cost:	structures	equipment		prepayments
Balance as at 1 January 2022	4,252	36,005	5,665	1,302	47,224
Additions	-	339	13	-	352
Disposals and write-offs	-	(9)	(17)	-	(26)
Reclassifications	-	1,302	-	(1,302)	-
Elimination of accumulated	-	-	-	-	-
depreciation
Balance as at 31 December 2022	4,252	37,637	5,661	-	47,550
Accumulated depreciation:
Balance as at 1 January 2022	2,767	35,068	5,297	-	43,132
Charge for the year	83	373	136	-	592
Disposals and write-offs	-	(11)	(16)	-	(27)
Impairment loss	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Depreciation after revaluation	-	-	-	-	-
Balance as at 31 December 2022	2,850	35,430	5,417	-	43,697
Revalued value:
Balance as at 1 January 2022	4,206	7,677	1,472	-	13,355
Additions	-	-	-	-	-
Disposals and write-offs	-	(2)	(1)	-	(3)
Reclassifications	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Balance as at 31 December 2022	4,206	7,675	1,471	-	13,352
Depreciation of revalued value:
Balance as at 1 January 2022	454	2,739	888	-	4,081
Charge for the year	143	794	107	-	1,044
Disposals and write-offs	-	-	-	-	-
Impairment loss	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Depreciation after revaluation	-	-	-	-	-
Balance as at 31 December 2022	597	3,533	995	-	5,125
Carrying amount as at 31	5,011	6,349	720	-	12,080
December 2022
Carrying amount as at 1 January 2022	5,237	5,875	952	1,302	13,366

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

13. Property, plant and equipment (continued)

	Land,	Machinery		Construction
Group	buildings	and	Vehicles and	in progress	Total
	and		other	and
Cost:	structures	equipment		prepayments
Balance as at 1 January 2021	4,252	35,938	5,553	168	45,911
Additions	-	158	133	1,134	1,425
Disposals and write-offs	-	(91)	(21)	-	(112)
Reclassifications	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Balance as at 31 December 2021	4,252	36,005	5,665	1,302	47,224
Accumulated depreciation:
Balance as at 1 January 2021	2,668	34,674	5,186	-	42,528
Charge for the year	99	436	132	-	667
Disposals and write-offs	-	(42)	(21)	-	(63)
Impairment loss	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Depreciation after revaluation	-	-	-	-	-
Balance as at 31 December 2021	2,767	35,068	5,297	-	43,132
Revalued value:
Balance as at 1 January 2021	4,206	7,679	1,475	-	13,360
Additions	-	-	-	-	-
Disposals and write-offs	-	(2)	(3)	-	(5)
Reclassifications	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Balance as at 31 December 2021	4,206	7,677	1,472	-	13,355
Depreciation of revalued value:
Balance as at 1 January 2021	327	2,020	743	-	3,090
Charge for the year	127	719	145	-	991
Disposals and write-offs	-	-	-	-	-
Impairment loss	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Depreciation after revaluation	-	-	-	-	-
Balance as at 31 December 2021	454	2,739	888	-	4,081
Carrying amount as at 31 December 2021	5,237	5,875	952	1,302	13,366
Carrying amount as at 1 January 2021	5,463	6,923	1,099	168	13,653

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

13. Property, plant and equipment (continued)

	Land,	Machinery		Construction
Company	buildings	and	Vehicles and	in progress	Total
	and		other	and
Cost:	structures	equipment		prepayments
Balance as at 1 January 2022	4,252	33,375	5,652	1,300	44,579
Additions	-	336	4	-	340
Disposals and write-offs	-	(9)	(11)	-	(20)
Reclassifications	-	1,300	-	(1,300)	-
Elimination of accumulated	-	-	-	-	-
depreciation
Balance as at 31 December 2022	4,252	35,002	5,645	-	44,899
Accumulated depreciation:
Balance as at 1 January 2022	2,767	32,498	5,292	-	40,557
Charge for the year	83	345	134	-	562
Disposals and write-offs	-	(10)	(10)	-	(20)
Impairment loss	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Depreciation after revaluation	-	-	-	-	-
Balance as at 31 December 2022	2,850	32,833	5,416	-	41,099
Revalued value:
Balance as at 1 January 2022	4,206	7,677	1,472	-	13,355
Additions	-	-	-	-	-
Disposals and write-offs	-	(2)	(1)	-	(3)
Reclassifications	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Balance as at 31 December 2022	4,206	7,675	1,471	-	13,352
Depreciation of revalued value:
Balance as at 1 January 2022	454	2,739	889	-	4,082
Charge for the year	143	794	107	-	1,044
Disposals and write-offs	-	-	-	-	-
Impairment loss	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Depreciation after revaluation	-	-	-	-	-
Balance as at 31 December 2022	597	3,533	996	-	5,126
Carrying amount as at 31 December 2022	5,011	6,311	704	-	12,026
Carrying amount as at 1 January	5,237	5,815	943	1,300	13,295
2022

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

40 13. Property, plant and equipment (continued) Company	Land,	Machinery		Construction
	buildings	and	Vehicles and	in progress	Total
	and		other	and
Cost:	structures	equipment		prepayments
Balance as at 1 January 2021	4,252	33,209	5,532	169	43,162
Additions	-	166	131	1,131	1,428
Disposals and write-offs	-	-	(11)	-	(11)
Reclassifications	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Balance as at 31 December 2021	4,252	33,375	5,652	1,300	44,579
Accumulated depreciation:
Balance as at 1 January 2021	2,668	32,091	5,174	-	39,933
Charge for the year	99	407	130	-	636
Disposals and write-offs	-	-	(12)	-	(12)
Impairment loss	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Depreciation after revaluation	-	-	-	-	-
Balance as at 31 December 2021	2,767	32,498	5,292	-	40,557
Revalued value:
Balance as at 1 January 2021	4,206	7,679	1,475	-	13,360
Additions	-	-	-	-	-
Disposals and write-offs	-	(2)	(3)	-	(5)
Reclassifications	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Balance as at 31 December 2021	4,206	7,677	1,472	-	13,355
Depreciation of revalued value:
Balance as at 1 January 2021	327	2,020	743	-	3,090
Charge for the year	127	719	146	-	992
Disposals and write-offs	-	-	-	-	-
Impairment loss	-	-	-	-	-
Elimination of accumulated	-	-	-	-	-
depreciation
Depreciation after revaluation	-	-	-	-	-
Balance as at 31 December 2021	454	2,739	889	-	4,082
Carrying amount as at 31 December 2021	5,237	5,815	943	1,300	13,295
Carrying amount as at 1 January	5,463	6,777	1,090	169	13,499
2021

The depreciation charge of the Group’s property, plant and equipment for 2022 amounts to EUR 1,645 thousand (EUR

1,658 thousand for 2021). After the assessment of amortisation of grants, the amount of EUR 1,566 thousand for 2022

(EUR 1,584 thousand for 2021) was included into production cost and the amount of EUR 79 thousand (EUR 74 thousand

for 2021) was included into general and administrative expenses in the Group’s statement of comprehensive income.

The depreciation charge of the Company’s property, plant and equipment for 2022 amounts to EUR 1,615 thousand (EUR

1,628 thousand for 2021). The amount of EUR 79 thousand for 2022 (EUR 74 thousand for 2021) was included into general

and administrative expenses in the Company’s statement of comprehensive income. The remaining amount of

depreciation, after having assessed the amortisation of grants amounting to EUR 1,536 thousand (EUR 1,554 thousand

for 2021) was included in the production cost.

As at 31 December 2022 The Group's and the Company's buildings, machinery and equipment are pledged to banks as

collateral for loans (Note 23).

As at 31 December 2022, fully depreciated but still usable Group and Company material assets purchase values were

EUR 5,163 thousand and EUR 4,795 thousand (at 31 December 2021 – EUR 3,780 thousand and EUR 3,480 thousand) .

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Revaluation of property, plant and equipment

Starting from 30 September 2016 the Group and the Company decided to revaluate the non-current assets, including

buildings, structures, machinery and equipment as well as other production equipment. The valuation of non-current assets

for financial reporting purposes has been carried out by external, independent valuator, having appropriate recognised

professional qualifications and recent experience in the location and category of the property being valued. The valuation

of real estate was based on the comparable method by comparing sales prices of similar real estate in Lithuania. The

valuation of machinery and equipment and other non-current assets was based on comparable or depreciated replacement

cost (DRC) methods. The estimated fair value was valued by independent valuators - Corporation „Matininkai“.

Building and structures were attributed to Level 3 of fair value hierarchy. Under the Market method, the sale transactions

or offer examples in respect of the real estate and constructions were observed in the market. The comparable real estate

objects were selected due to the similarity with the object being measured with respect to size, nature, location, intended

use, condition and other parameters. The valuation of real estate required adjustments to reflect differences between the

objects being measured and comparable objects.

Machinery and equipment, vehicles and other assets were also attributed to Level 3 of fair value hierarchy. Part of the

machinery was valued based on at least two or three comparable inputs. Comparable inputs selected were similar to the

assets subject to valuation. This method was used for the measurement of a part of equipment in respect of which sale or

offer market data was available. The remaining part of machinery and equipment were valued by DRC method. The

replacement values of these non-current assets were based on their acquisition costs and comparable price changes

provided by the Statistics Department. When establishing physical obsolescence it is assumed that the value of property

being measured is written off in proportion to the number of years. The assets subject to valuation were classified into

categories in respect of which the useful life up to 20 years depending on the group of asset was established based on the

expert opinion of the valuer.

Asset were valued under this scheme:

1. All Company long-term assets were valued using discounted cash flows model.

2. From this value, intangible assets at balance value and buildings at market value were taken off.

3. Other movable assets were valuated using comparison method, while special movable assets and other assets, not

possible to value at comparison model, were valuated at DRC model. Some assets, not possible to value by methods

described above, were valuated at disposal rate.

4. The remaining value was allocated to all valued items, by using correction coefficients. Only assets, valued by DRC

and disposal methods, were corrected using coefficients.

The increase in value of non-current tangible assets was registered by increasing the acquisition cost of the asset and was

accounted as follows as at 30 September 2018:

The Company	Book value	Revalued amounts Revaluation surplus
Buildings and structures	5,404	5,975	571
Machinery and equipment	8,089	9,160	1,071
Vehicles and other assets	1,435	1,759	324
Total:	14,928	16,894	1,966

Furthermore, the estimated fair value of PPE was tested for impairment by comparing it to the recoverable amount of PPE

determined based on the income method.

The revenue approach model was based on management's 2018-2022 forecasts, which assumed the following

assumptions for cash flow projections based on the market situation:

- Maintaining current product turnover in a more or less constant level of recent years. In the following years, a

gradual slowdown in western markets is planned due to the increasing influence of Chinese manufacturers on

the production of private brands in the home appliance sector. One of the most important reasons for the

company's sales of own brand Snaigė is the continuous and consistent development of technologies, brand

support, and development of new products, therefore no decrease in sales of this category is planned.

- Starting production of a new product – industrial refrigeration equipment. This step has been chosen due to the

fact that the existing domestic refrigerating appliance markets are shrinking and oligopolizing, thus reducing the

niche of the Company's type manufacturers, while the industrial refrigeration equipment is less standardized, and

very large manufacturers cannot gain a competitive advantage through economies of scale and in that way reduce

potential niches. In addition, the Company has many years of experience in trading such products, and the

technological process is very close to existing production.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

The evaluators also performed an analysis of the dependence of variable and fixed costs on production volumes, and the

average product price and its variation. The main components of working capital (stock requirements, receivables, and

trade payables) are calculated on the basis of average values (parts of income and expenses) from actual data from 2012-

2018 (non-typical current liabilities and receivables are excluded from working capital)

In preparing the 2022 and the 2021 financial statements, no independent determination of the fair value of the assets was

made because there was no reason to believe that the carrying amount of the assets would not reflect fair value. The

assumptions largely reflect the current situation and strategy, and their slight shift in time does not significantly affect the

fair value of the assets calculated according to a similar model.

Change in estimates

2022 The Group performed a test of the useful life and residual value of its non-current assets, but did not identify any

changes in the applicable useful lives and residual values.

As the Company has acquired the status of a company under restructuring in 2022 and the Company's Restructuring Plan

provides for the possibility to sell part of its tangible assets with a prior valuation, the market values of the Company's non-

current assets will be subject to adjustments (if necessary) following the valuation of the assets during the course of the

restructuring plan.

14. Current loans to related companies

	Group		Company
	31 December	31 December	31 December	31 December
	2022	2021	2022	2021
Loans granted	8,068	8,068	8,068	8,068
Interest calculated	2,262	2,262	2,262	2,262
Total receivables	10,330	10,330	10,330	10,330
Minus:	(8,068)	(8,068)	(8,068)	(8,068)
Provisions for doubtfull loans
Provisions for doubtfull interest	(2,262)	(2,262)	(2,262)	(2,262)
Minus: total provisions	(10,330)	(10,330)	(10,330)	(10,330)
Net receivables	-	-	-	-

The agreement, for the assignment claim right towards Hymana Holdings Ltd., arising from the Agreement for the

Assignment (Cession) dated 24 November 2015 concluded between the Company and Hymana Holdings Ltd., was

concluded with the Company’s Board member K.A. Kovalchuk (Assignee). The Claim Right shall be assigned by

installments and when the Assignee makes a payment and funds are credited to the Company’s bank account, respective

part of the Claim Right in amount corresponding to the amount of funds received shall be considered to be assigned to the

Assignee by the Company. The Assignee shall not in any case be considered as acquired the whole Claim Right if the

amount paid by the Assignee and credited in the Company’s bank account is lower than an amount of the Claim Right.

The Company shall have a right to terminate the Agreement unilaterally at any time.

15. Inventories

	Group			Company
	As at 31	As at 31	As at 31	As at 31
	December 2022 December 2021 December 2022 December 2021
Raw materials and spare parts	1,673	3,288	1,653	3,259
Production in progress	309	274	309	274
Finished goods	1,739	1,867	1,719	1,843
Goods for resale	302	882	302	882
Minus: impairment	(230)	(169)	(193)	(131)
Total inventories	3,793	6,142	3,790	6,127

Raw materials and materials consist of compressors, components, plastics, wires, metals and other materials used in the

production.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

	Group			Company
	As at 31	As at 31	As at 31	As at 31
	December 2022 December 2021 December 2022 December 2021
At the beginning of the year	(169)	(237)	(131)	(164)
Impairment	(61)	-	(62)	-
Recovery	-	68	-	33
At the end of the year	(230)	(169)	(193)	(131)

As at 31 December 2022, the Group and the Company have no legal restrictions on inventories. Raw materials included

to cost of sales by the Group and the Company amounted to EUR 14,821 thousand and EUR 14,821 thousand respectively

(As at 31 December 2021 respectively EUR 21,079 thousand and EUR 20,704 thousand).

16. Trade receivables

	Group			Company
	As at 31	As at 31	As at 31	As at 31
	December 2022 December 2021 December 2022 December 2021
Receivables from not related customers	3,196	4,918	3,011	4,764
Receivables from related customers	-	-	63	23
Gross receivables	3,196	4,918	3,074	4,787
Less: impairment allowance for doubtful	(1,171)	(671)	(1,109)	(606)
receivables
Net receivables	2,025	4,247	1,965	4,181
Including:
Current receivables	2,025	4,247	1,965	4,181
Total	2,025	4,247	1,965	4,181

Movements in the individually assessed impairment of trade receivables were as follows:

		Group		Company
	2022	2021	2022	2021
Balance at the beginning of the period	(671)	(1,259)	(606)	(1,191)
Impairment Charge for the year	(503)	-	(503)	-
Effect of the change in foreign currency	3	(2)	-	-
exchange rate
Amounts paid	-	6	-	1
Amounts written off	-	584	-	584
Balance at the end of the period	(1,171)	(671)	(1,109)	(606)

As at 31 December 2022 100% impairment was accounted for trade receivables of the Group and the Company in gross

values of EUR 1,171 thousand and EUR 1,109 thousand (as at 31 December 2021 – EUR 671 thousand and EUR

606 thousand respectively). Change in impairment allowance for receivables was accounted for within general and

administrative expenses.

The receivables are written-off when it becomes obvious that they will not be recovered. The impairment allowance for

receivables of the Group and the Company in 2022 and 2021 was stated under general and administrative expenses.

17. Other amounts receivable

	Group			Company
	As at 31	As at 31	As at 31	As at 31
	December 2022 December 2021 December 2022 December 2021
VAT receivable	101	192	101	192
Other receivables	40	44	40	42
Restricted cash	10	14	10	14
	151	250	151	248

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

18. Cash and cash equivalents

	Group			Company
	As at 31	As at 31	As at 31	As at 31
	December 2022 December 2021 December 2022 December 2021
Cash at bank	175	126	14	51
Cash on hand	4	3	3	2
	179	129	17	53

As at 31 December 2022 and 2021 no restrictions were imposed on the Group’s and the Company’s cash, except of those

in Note 23.

19. Share capital

As at 31 December 2022 and 31 December 2021, share capital of the Company and the Group was EUR 6,736 thousand.

On 31 December 2022, the share capital of the Company and the Group was divided into 39,622 thousand ordinary

registered shares with the par value of EUR 0.17 each as at 31 December 2022 and 2021.

All shares of the Company are fully paid. The Company does not have any other classes of shares than ordinary shares

mentioned above, there are no restrictions of share rights or special control rights for the shareholders set in the Articles

of Association of the Company. No shares of the Company are held by itself or its subsidiaries. No convertible securities,

exchangeable securities or securities with warrants are outstanding; likewise, there are no outstanding acquisition rights

or undertakings to increase share capital as at 31 December 2022 and 2021.

According to the Law on Companies of the Republic of Lithuania, the company's total equity cannot be less than 1/2 of its

share capital specified in the company’s by-laws. As at 31 December 2022 and the Company did not comply with this

requirement. The Company's equity capital is negative. The issue of compliance with the share capital will be resolved

during the restructuring of the Company.

20. Reserves

Legal reserve

As at 31 December 2022, the legal reserve of the Group and the Company was EUR 674 thousand and EUR 718 thousand

(As at 31 December 2021 it was EUR 674 thousand and EUR 718 thousand).

The Company’s legal reserve is compulsory under Lithuanian legislation. Annual transfers of not less than 5% of net profit

are compulsory until the reserve reaches 10% of the share capital. The Group’s legal reserve is formed from the legal

reserve of the Company and the subsidiaries.

As at 31 December 2022 and 31 December 2021 the legal reserve of the Group and the Company was fully formed.

Revaluation reserve for property, plant and equipment

	Group	Company
Revaluation reserve carrying amount as at 31 December 2021	7,675	7,675
Positive Revaluation result	-	-
Deferred income tax liability	-	-
Decrease of revaluation reserve through statement of comprehensive income	-	-
Share capital decrease	-	-
Revaluation reserve net value at 1 January 2022	7,675	7,675
Profit (loss), not recognized in statement of comprehensive income, resulted from annual depreciation of revaluated assets	(890)	(890)
Revaluation reserve carrying amount as at 31 December 2022	6,785	6,785

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

	Group	Company
Revaluation reserve carrying amount as at 31 December 2020	8,521	8,521
Positive Revaluation result	-	-
Deferred income tax liability	-	-
Decrease of revaluation reserve through statement of comprehensive income	-	-
Share capital decrease	-	-
Revaluation reserve net value at 1 January 2021	8,521	8,521
Profit (loss), not recognized in statement of comprehensive income, resulted from annual depreciation of revaluated assets	(846)	(846)
Revaluation reserve carrying amount as at 31 December 2021	7,675	7,675

21. Grants

Group and Company

Balance as at 31 December 2021	5,138
Received during the period	-
Balance as at 31 December 2022	5,138
Amortisation during the period
Accumulated amortisation as at 31 December 2021	4,849
Amortisation during the period	55
Accumulated amortisation as at 31 December 2022	4,904
Net carrying amount as at 31 December 2022	234
Net carrying amount as at 31 December 2021	289

The grants were received for the renewal of production machinery and repairs of buildings in connection with the elimination

of CFC 11 element from the production of polyurethane insulation and filling foam, and for elimination of greenhouse gases

in the manufacturing of domestic refrigerators and freezers. In 2021, grants were also received to reimburse salary costs

(EUR 1,002 thousand) to reduce the negative effects of COVID-19.

Grants are amortised over the same period as the machinery and other assets for which grants were designated when

compensatory costs are incurred. The amortisation of grants is included in production cost against depreciation of

machinery and reconstruction of buildings for which the grants were designated.

22. Provisions

The Group provides a warranty of 2 years for the production sold and 5 years warranty on promotional products. The

provision for warranty repairs was accounted for based on the expected cost of repairs and statistical warranty repair rates

and divided respectively into non-current and current provisions. Difference between years depends on product and

warranty period mix.

		Group		Company
	2022	2021	2022	2021
As at 1 January	300	320	297	310
Additions during the year	60	165	60	165
Utilised	(119)	(185)	(117)	(178)
As at 31 December	241	300	240	297
Including:
Non-current	94	118	94	117
Current	147	182	146	180
Total	241	300	240	297

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

23. Non-current and current borrowings

		Group	Company
	As at 31	As at 31	As at 31	As at 31
	December	December	December	December
	2022	2021	2022	2021
Non-current borrowings
Non-current borrowings with a fixed interest rate	1,259	888	1,259	888
Accrued interest	104	-	104	-
Non-current borrowings with variable interest rate	8,376	7,108	8,376	7,108
Accrued interest	314	-	314	-
Non-current liabilities to lease companies	-	9	-	9
	10,053	8,005	10,053	8,005
Current borrowings
Current borrowings with a fixed interest rate	-	437	-	437
Current borrowings with variable interest rate	-	1,270	-	1,270
Other debt liabilities	-	777	-	777
Current liabilities to lease companies	9	18	9	18
	9	2,502	9	2,502
	10,062	10,507	10,062	10,507

The main information on individual borrowings is disclosed below:

				Group	Company
			As at 31	As at 31	As at 31	As at 31
			December	December	December	December
	Type	Maturity	2022	2021	2022	2021
		Under the
Borrowing 1	Loan	restructuring plan	8,690	-	8,690	-
		31-01-2023	-	8,378	-	8,378
		Under the
Borrowing 2	Loan	restructuring plan	1,363	-	1,363	-
		11-08-2024	-	1,325	-	1,325
	Factoring	05-03-2022	-	777	-	777
Lease 1		26-03-2021	-	-	-	-
Lease 2		26-05-2021	-	-	-	-
Lease 3		26-08-2021	-	-	-	-
Lease 4		11-07-2022	-	-	-	-
Lease 5		25-06-2023	3	9	3	9
Lease 6		25-06-2023	2	6	2	6
Lease 7		25-06-2023	2	6	2	6
Lease 8		25-06-2023	2	6	2	6
			10,062	10,507	10,062	10,507

As at 31 December 2022 annual interest rate of the loan 1 is 1 month EURIBOR + 5.25% (as at 31 December 2021 1 month

EURIBOR + 5.25% annual interest rate).

As at 31 December 2022, loan 2 is set at 0.67% for a 30-day period and 0.23% compensatory interest per day.

As of 31 December 2022 the Company’s buildings with the carrying amount of EUR 4,919 thousand (EUR 5,124 thousand

as at 31 December 2021), the Group’s and Company’s machinery and equipment with the carrying amount of EUR 6,187

thousand (EUR 5,181 thousand as at 31 December 2021) were pledged to the banks for the loans.

The claim rights on Loan 1 and Loan 2 were transferred to the new creditors after the start of the restructuring process,

while the other terms of the loans remained in force.

According to the list of creditors approved by the Court, loans are recorded in long-term or short-term liabilities.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Borrowings at the end of the year in currencies:

	Group		Company
	As at 31	As at 31	As at 31	As at 31
	December 2022	December 2021	December 2022	December 2021
Borrowings denominated in:
Euro	10,062	10,507	10,062	10,507
	10,062	10,507	10,062	10,507

The fixed interest rates of 3.9% were set to liabilities under lease (financial lease) of the Group.

Future lease payments under lease agreements as at 31 December 2022 and 31 December 2021 are as follows:

		As at 31	As at 31
		December 2022	December 2021
2021		-	-
2022			19
2023		10	9
Total liabilities under financial leases		10	28
Interest		(1)	(1)
Present value of liabilities under financial leases		9	27
Liabilities under financial leases are accounted for as:	9
Current liabilities	9
Non-current liabilities	-

The Group’s assets leased under Financial lease agreements comprise machinery and equipment (in Subsidiary). The

leasing period is 5 years.

The carrying amount of the assets acquired under finance lease:

	As at 31	As at 31
	December 2022	December 2021
Machinery and equipment	43	60
Cars	11	32
	54	92

24. Other non-current liabilities and long-term employee benefits In the course of the restructuring proceedings, the court approved the list of payables as at 20 September 2022, which the Company recorded as long-term liabilities. Non-current liabilities to credit institutions	Group	Company
Loan 1	8,690	8,690
Loan 2	1,363	1,363
31 December 2022	10,053	10,053

Other long-term liabilities	Group	Company
Debts to suppliers	8,186	8,186
Debts to subsidiaries	-	166
Amounts payable to the State Social Insurance Fund	63	63
Dividends payable and deposited	49	49
31 December 2022	8,298	8,464

04 April 2023 The Kaunas District Court has not approved the restructuring plan of AB Snaigė.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

48 The Company's management does not agree with such a decision of the court, as such a decision does not protect the interests of the Company nor the interests of the company's non-mortgage creditors. Taking into account the fact that the Company is a viable company, which pays taxes to the State and SoDra on time, wages to its employees, makes current payments to its creditors, has all the possibilities to continue to operate and develop, and that these are only temporary financial difficulties, the Company has appealed the decision of the Kaunas District Court. As at 31 December 2022 of the Group’s and the Company’s, the expenses of the one-time payments for leaving employees at a retirement age amounted to EUR 120 thousand and EUR 116 thousand (EUR 33 thousand and EUR 27 thousand as at 31 December 2021). Long-term employee benefits
	Group	Company
31 December 2021	326	300
Used in 2022	(120)	(116)
Accumulated in 2022	3	3
31 December 2022	209	187

Actuarial gains and losses in 2022 and 2021 were insignificant; therefore, they were not separated and presented in other comprehensive income. 25. Lease The carrying amounts of assets held under a recognized right of use and their movements during the period are as follows: Company
	Land	Vehicles	Total
1 January 2022	95	14	109
Acquisitions
Depreciation expenses	(11)	(14)	(25)
31 December 2022	84	-	84
	Land	Vehicles	Total
1 January 2021	105	31	136
Acquisitions
Depreciation expenses	(10)	(17)	(27)
31 December 2021	95	14	109

Group
	Land	Vehicles	Total
1 January 2022	95	14	109
Acquisitions
Depreciation expenses	(11)	(14)	(25)
31 December 2022	84	-	84
	Land	Vehicles	Total
1 January 2021	105	31	136
Acquisitions
Depreciation expenses	(10)	(17)	(27)
31 December 2021	95	14	109

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

The carrying amounts of lease liabilities and their movements during the period are as follows:

	Company	Group
1 January 2022	95	95
Acquisitions
Interest increase
Payments	(11)	(11)
31 December 2022	84	84
	Company	Group
1 January 2021	105	105
Acquisitions
Interest increase
Payments	(10)	(10)
31 December 2021	95	95

The Company and the Group do not have any agreements that provide for the possibility of extension or termination and

which are not expected to be exercised or are expected to be exercised.

26. Employee related liabilities

		Group	Company
	As at 31	As at 31	As at 31	As at 31
	December	December	December	December
	2022	2021	2022	2021
Provisions for Holliday payment	199	451	175	431
Salaries payable	260	230	245	216
Bonus accumulations	-	-	-	-
Social tax payables	97	133	89	125
Personal Income tax payables	41	79	37	74
	597	893	546	846

27. Profit tax and other current liabilities

	Group			Company
	As at 31	As at 31	As at 31	As at 31
	December 2022 December 2021 December 2022 December 2021
Other taxes:	9	9	4	9
Other payables and accrued expenses	84	373	80	354
	93	382	84	363

28. Basic and diluted profit (loss) per share

Calculation of basic and diluted earnings per share is presented below:

		Group		Company
	2022	2021	2022	2021
Weighted average number of ordinary shares	39,622	39,622	39,622	39,622
Net profit (loss) for the year, attributable to the shareholders of Company	(5,170)	(1,974)	(5,212)	(2,018)
Basic profit (loss) per share, in EUR	(0.13)	(0.05)	(0.13)	(0.05)

29. Financial instruments

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

Overview

The Group and the Company have exposure to the following risks: credit risk, liquidity risk and market risk. This note

presents information about the Group’s and the Company’s exposure to each of these risks, the Company’s objectives,

policies and processes for measuring and managing risk, and the Company’s management of capital. Further quantitative

disclosures are included throughout these financial statements.

The Board has overall responsibility for the establishment and oversight of the Group and the Company’s risk management

framework. The Group’s and Company’s risk management policies are established to identify and analyse the risks faced

by the Group and the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.

Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s

and the Company’s activities. The Group and the Company aim to develop a disciplined and constructive control

environment in which all employees understand their roles and obligations.

Credit risk

As at 31 December 2022 and 2021, the maximum exposure to credit risk is represented by the carrying amount of each

financial asset, consequently, the Group’s and the Company’s management considers that its maximum exposure is

reflected by the amount of loans receivable from related parties, trade and other receivables, net of impairment allowance,

and the amount of cash and cash equivalents recognised at the date of the statement of financial position. Credit risk or

risk that a counterparty will not fulfil its obligations, is controlled by credit terms and monitoring procedures, using services

of external credit insurance and debt recovery agencies.

As at 31 December, the credit risk was related to:

	Group			Company
	As at 31	As at 31	As at 31	As at 31
	December 2022 December 2021 December 2022 December 2021
Trade receivables	2,025	4,247	1,965	4,181
Cash and cash equivalents	179	129	17	53
	2,204	4,376	1,982	4,234

The concentration of the Group’s and the Company’s trade partners and the largest credit risk related to trade receivables

as at the reporting date are disclosed below:

			Group			Company
	2022	%	2021	%	2022	%	2021	%
Client 1	651	20	852	17	651	21	852	18
Client 2	345	11	699	14	345	11	699	15
Client 3	155	5	347	7	155	5	347	7
Client 4	135	4	221	5	135	4	221	5
Client 5	105	3	192	4	105	3	192	4
Client 6	73	2	161	3	73	2	161	3
Client 7	69	2	160	3	69	2	160	3
Other clients	1,663	53	2,286	47	1,541	52	2,155	45
Impairment	(1,171)	-	(671)	-	(1,109)	-	(606)	-
Total	2,025	100	4,247	100	1,965	100	4,181	100

Trade receivables according to geographic regions:

		Group		Company
	2022	2021	2022	2021
Western Europe	1,288	1,904	1,288	1,904
Central Europe	247	1,263	247	1,263
Ukraine	108	445	108	445
Lithuania	363	228	304	162
Other CIS countries	-	86	-	86
Other Baltic States	19	14	18	14
Russia	-	307	-	307
Other	-	-	-	-
	2,025	4,247	1,965	4,181

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

51 Central Europe comprises Poland, the Czech Republic, Bulgaria; Western Europe comprises France, Germany, Norway, Portugal; other CIS countries include Uzbekistan, Moldova, and Azerbaijan. In 2022, 49,8% and 53,9% of sales of the Group and the Company respectively were directed to Western Europe (in 2021, respectively 45,6% and 49,6%) and 6,97% and 7,47% were directed to Ukraine (in 2021 respectively 10,8% and 11,1% of sales). As at 31 December 2022, the Group’s and the Company’s amounts receivable for items sold in Western Europe and Ukraine, less impairment losses were equal to EUR 1,288 thousand and EUR 1,288 thousand, and in Ukraine respectively EUR 108 thousand and EUR 108 thousand (as at 31 December 2021, EUR 1,904 thousand and EUR 1,904 thousand and Ukraine EUR 445 thousand and EUR 445 thousand respectively). Although management considers that it takes all necessary measures under current circumstances to maintain stable business of the Group and the Company, the persistent instability of business environment could unpredictably affect the performance of the Group and the Company and their financial position. As at 31 December 2022, having assessed the risks, the Group and the Company recognised impairment allowance of EUR 1,171 thousand and EUR 1,109 thousand for receivables (as at 31 December 2021, EUR 671 thousand and EUR 606 thousand). These financial statements reflect the current management’s estimate related to the effect of the business environment on the Group’s and the Company’s activities and financial position. The future business environment might differ from the management’s estimates. The Group’s and the Company’s management believes that the maximum risk equals to trade receivables, less recognised impairment losses at the reporting date. The Group and the Company do not provide guarantees for obligations of other parties. The Group and the Company have credit policies in place and credit risk is constantly controlled. Credit risk assessment is applied to all clients willing to get a payment deferral. Trade receivables from the Group in the amount of EUR 1,645 thousand as at 31 December 2022 (EUR 2,718 thousand as at 31 December 2021) were insured with credit insurance by Atradius Sweden Kreditförsäkring Lithuanian branch. Trade receivables from Ukraine, Moldova, Russia and other CIS countries were not insured. The delay analysis of trade receivables, less impairment losses, as at 31 December 2022 and 2021 is as follows: Group, debt limitation			Trade receivables past due but not impaired
Trade receivables		Less
neither past due nor		than 30	30–60	60–90	90–120	More than
	impaired	days	days	days	days	120 days	Total
2022	1,731	142	18	8	35	91	2,025
2021	3,759	74	60	8	0	346	4,247

Company, debt limitation			Trade receivables past due but not impaired
Trade receivables		Less
neither past due nor		than 30	30–60	60–90	90–120	More than
	impaired	days	days	days	days	120 days	Total
2022	1,712	120	23	0	19	91	1,965
2021	3,735	53	44	4	0	345	4,181

Solvency / Liquidity risk

The Group’s and the Company’s policy is to maintain sufficient cash and cash equivalents by using cash flows statements

with liquidity forecasting for future periods. The statement comprises predictable operating cash flows and effective

planning of cash utilisation. The Group’s liquidity (total current assets / total current liabilities) and quick ((total current

assets - inventory) / total current liabilities) ratios as at 31 December 2022 were 3.6 and 1.5 respectively (0.91 and 0.41 as

at 31 December 2021 respectively).

The purpose of the Group’s and the Company’s liquidity risk management policy is to maintain the ratio between continuous

financing and flexibility in using overdrafts, bank loans, bonds, and lease agreements.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

52 The table below summarises the maturity profile of the financial liabilities as at 31 December 2022 and 2021 based on contractual undiscounted payments. Group		Less			More
	On	than 3	3 to 12	1 to 5	than 5		Carrying
	demand	months	months	years	years	Total	amount
Interest bearing loans and borrowings	-	5	4	10,053	-	10,062	10,062
Trade and other payables	437	397	-	8,186	-	9,020	9,020
Balance as at 31 December 2022	437	402	4	18,239	-	19,082	19,082
Interest bearing loans and borrowings	-	1,002	1,510	8,004	-	10,516	10,516
Trade and other payables	4,695	3,056	69	384	-	8,204	8,204
Balance as at 31 December 2021	4,695	4,058	1,579	8,388	-	18,720	18,720

Company		Less			More
	On	than 3	4 to 12	1 to 5	than 5		Carrying
	demand	months	months	years	years	Total	amount
Interest bearing loans and borrowings	-	5	4	10,053	-	10,062	10,062
Trade and other payables	256	421	-	8,352	-	9,029	9,029
Balance as at 31 December 2022	256	426	4	18,405	-	19,091	19,091
Interest bearing loans and borrowings	-	1,002	1,510	8,004	-	10,516	10,516
Trade and other payables	4,719	3,057	69	384	-	8,229	8,229
Balance as at 31 December 2021	4,719	4,059	1,579	8,388	-	18,745	18,745

The presentation of interest bearing loans and borrowing were restated by the Group and the Company due to regulator

requirements. The loans were presented as payable on demand.

The interest payments on variable interest rate loans in the table above are calculated based on the average market

interest rates at the period end and these amounts may change as market interest rates change.

The solvency/liquidity risk is exacerbated by the Company's ongoing restructuring process, in which most financial

institutions are avoiding or restricting the Company's ability to use any financial instruments, resulting in a lack of working

capital and an inability to fully execute the Company's orders.

Interest rate risk

The Group’s and the Company’s borrowings are subject to variable interest rates related to EURIBOR.

As at 31 December 2022 and 2021, the Group and the Company did not use any financial instruments to hedge against

interest rate risk.

Sensitivity of the Group and the Company profit before taxes with respect to possible interest rate movements is not

substantial. Other effect to Company and Group equity is not possible except via profit.

In the course of restructuring proceedings, interest is not permitted to accrue on liabilities incurred prior to the

commencement of the restructuring proceedings in accordance with applicable law.

Foreign exchange risk

There were no derivative foreign currency transactions made in 2022 and 2021.

Monetary assets and liabilities of the Group denominated in various currencies as at 31 December 2022 and 2021 were

as follows:

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

		2022		2021
	Assets	Liabilities	Assets	Liabilities
EUR	2,203	19,082	4,375	18,646
USD	-	-	-	66
Other	1	-	1	-
Total	2,204	19,082	4,376	18,712

Monetary assets and liabilities of the Company denominated in various currencies as at 31 December 2022 and 2021

were as follows:

		2022		2021
	Assets	Liabilities	Assets	Liabilities
EUR	1,982	19,091	4,233	18,671
USD		-	1	66
Total	1,982	19,091	4,234	18,737

Capital management

The Group and the Company manage share capital, legal reserves, reserves, foreign currency translation, revaluation

reserves and retained earnings as capital. The primary objective of the Group’s and the Company’s capital management

is to ensure that the Group and the Company comply with the externally imposed capital requirements and to maintain

appropriate capital ratios in order to ensure their business and to maximise the shareholders’ benefit.

The Group and the Company manage their capital structure and make adjustments to it in the light of changes in the

economic conditions. To maintain or adjust the capital structure, the Group and the Company may adjust the dividend

payment to shareholders, return capital to shareholders or issue new shares.

The Law on Joint-Stock Companies of the Republic of Lithuania requires that the Company's equity capital shall be at least

50% of its share capital. As at 31 December 2022, the Company did not comply with this requirement. The Company's

equity capital is negative. The issue of compliance with the share capital will be resolved during the restructuring of the

Company.

30. Commitments and contingencies

The tax authorities may at any time perform investigation of the Company’s accounting registers and records for the period

of five years preceding the accounting tax period, as well as calculate additional taxes and penalties. Management of the

Company is not aware of any circumstances, which would cause calculation of additional significant tax liabilities.

Kaunas District Court by the order of 8 September 2022 in civil case No. eB2-1226-555/2022 has opened restructuring

proceedings in respect of Snaigė AB (The Company).

The order of Kaunas District Court to initiate of restructuring proceedings came into force and Snaigė AB obtained the

status of company under restructuring on 20 September 2022. The Company under restructuring continue commercial

activities. The corporate commercial activities managed by the Company's management bodies in accordance with their

competence and in compliance with the restrictions set out in the order of the Kaunas District Court of 8 September 2022.

However, in the course of the process, legal disputes may arise between the Company, its shareholders, creditors or other

interested parties concerning the restructuring plan itself or its implementation, which may directly or indirectly affect the

Company.

31. Related party transactions

According to IAS 24 Related Party Disclosures, the parties are considered related when one party can unilaterally or jointly

control other party or have significant influence over the other party in making financial or operating decisions or operation

matters, or when parties are jointly controlled and if the members of management, their relatives or close persons who can

unilaterally or jointly control the Company or the Group or have influence on it. To determine whether the parties are related

the assessment is based on the nature of relation rather than the form.

The controlling parties of the Group during 2022 and 2021 were as follows:

Vaidana UAB (former controlling party);

Hymana Holdings Ltd. (former controlling party);

Sekenora Holdings Limited (the parent).

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

The Group has a policy to conduct related party transactions on commercial terms and conditions. Outstanding balances

at the year-end are unsecured, interest-free, except the loan granted.

As at 31 December 2022 and 31 December 2021 the Group has not formed any impairment allowances for doubtful debts,

related to receivables from related parties for sales and provided services. Doubtful receivables are tested each year by

inspecting the financial position of the related party and assessing the market in which the related party operates.

Financial and investment transactions with the related parties over the year:

		2022					2021
	Loans	Interest	Loans	Interest	Loans	Interest	Loans	Interest
Companies,	received	expenses	granted	income	received	expenses	granted	income
controlled by ultimate	-	-	-	-	-	-	-	-
shareholders
Controlling	-	-	-	-	-	-	-	-
parties	-	-	-	-	-	-	-	-

2022	Purchases	Sales	Receivables	Payables
Companies, controlled by ultimate shareholders	72	22	494	-
Controlling parties	-	-	-	-
Total	72	22	494	-

2021	Purchases	Sales	Receivables	Payables
Companies, controlled by ultimate shareholders	203	83	638	94
Controlling parties	-	-	-	-
Total	203	83	638	94

The Company’s transactions carried out with subsidiaries:

		Purchases		Sales
	2022	2021	2022	2021
Subsidiaries	207	284	147	99

The Company has a policy to conduct transactions with subsidiaries on contractual terms. The Company’s transactions

with subsidiaries represent acquisitions and sales of raw materials and finished goods and acquisitions of marketing

services, as well as acquisitions of property, plant and equipment. Outstanding balances at the year-end are unsecured,

receivables are interest-free and settlement occurs at bank accounts. There were no pledged significant amounts of assets

to ensure the repayment of receivables from subsidiaries.

The carrying amount of loans and receivables from subsidiaries as at 31 December in the statement of financial position:

	2022	2021
Current receivables
Subsidiaries	63	23
Total current receivables	63	2 3

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

The delay analysis of receivables from subsidiaries and granted loans during the period as at 31 December:

	Receivables from					Receivables from subsidiaries and granted loans past due
	subsidiaries and granted	Less				but not impaired			Total
	loans neither past due		30–60	60–90	90–120	More than
	nor impaired	than 30
		days	days	days	days	120 days
2022	30	15	18			-	-	-	63
2021	23	-	-			-	-	-	23

Payables to subsidiaries as at 31 December (included under the trade payables caption in the Company’s statement of

financial position):

	2022	2021
Subsidiaries	170	89

Remuneration of the management and other payments

Remuneration of the Group’s management amounted to EUR 922 thousand (21 employees) during the twelve months of

2022, in 2021 – EUR 1,091 thousand (24 employees). The management of the Group did not receive any other loans,

guarantees; no other payments or property transfers were made or accrued.

32. The Impact of the Military Conflict in Ukraine

In response to the geopolitical situation, Snaigė AB has taken all necessary measures to preserve the continuity of the

company's operations, employees, clients and partners. At the time of issuing the Statements, the Company continues to

operate. Snaigė AB is able to fulfil the placed orders and fulfils them to the best of its ability; however, there are additional

potential risks to the Company's operations:

- At the time of preparing the Statements, no sanctions related to the military conflict have been imposed on the

Company, its management or shareholders.

- At the time of preparing the Statements, exports of production to Ukraine are partially resumed. An impairment

loss was recognised for receivables from Ukrainian customers. Raw material supplies from Ukraine have partially

resumed, but their volumes in 2022 were insignificant (about 1% of total purchases) and the suspension of

supplies from Ukraine does not have a direct impact on the Company's operations.

- Exports of products to Russia and Belarus are suspended, although there are no trade restrictions or sanctions

on the products or the Company’s customers at the time of preparing the Statements. The Company’s revenue

in 2022 from sales in Russia and Belarus amounted about 2% of the Company's total turnover. As at 22 August

2022, receivables from Russian and Belarusian customers were insignificant. Raw material supplies from Belarus

and Russia are not ongoing, but their volumes in 2022 were insignificant (less than 1% of total purchases). The

suspension of supplies from Russia and Belarus does not directly affect the Company's operations.

- The indirect impact of the conflict on the Company's and the Group's operations is very negative because:

o Due to the resulting tensions, a significant slowdown in trade is observed in almost all of the company's

markets (up to 50% of normal volumes in different markets, according to expert estimates).

o Significant increases in raw material, transport and energy prices due to the uncertainties caused by the

war in Ukraine, and the opportunities to purchase them are decreasing, which has a negative impact on

the Company's and the Group's operating results.

- There is a risk that the estimates used in the Company's and the Group's accounting, due to the market value of

assets, the fair market value of financial instruments and going concern assumptions, may be inaccurate, as it is

not yet possible to predict the exact consequences of military conflict for these sizes.

At present, it is quite difficult to reasonably estimate the impact on the financial results due to various uncertainties.

However, Snaigė AB exports its products to more than 30 countries in Europe, Asia and Africa, therefore, the company

expects to compensate for poor sales in Ukraine and other markets.

33. The process of Company restructuring

In order to implement the restructuring according to the draft restructuring plan of the Company approved by the

extraordinary general meeting of the Company's shareholders on 23 July 2022, Snaigė AB on 1 July 2022 applied to the

Kaunas District Court with a request to initiate the Company's restructuring case.

Kaunas District Court by the order of 8 September 2022 in civil case No. eB2-1226-555/2022 has opened restructuring

proceedings in respect of Snaigė AB (The Company).

UAB Įmonių Bankroto Administravimo ir Teisinių Paslaugų Biuras (UAB Office of Enterprise Bankruptcy Administration and

Legal Services) was appointed as the Administrator (No N-JA0027), authorised person – Aurimas Valaitis.

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

(all amounts are in EUR thousand unless otherwise stated)

The order to initiate of restructuring proceedings came into force and Snaigė AB obtained the status of company under

restructuring on 20 September 2022.

Pursuant to the Article 28 of the Law on Insolvency of Legal Entities, from the date of entry into force of the decision to

open restructuring proceedings, i.e. from 20 September 2022, and until entry into force of the court's order to approve the

Restructuring Plan or to terminate the insolvency proceedings, Snaigė AB is prohibited the following:

1. To execute financial obligations of the company which have not been fulfilled before the date of entry into force

of the of the court's order to open restructuring proceedings, including the payment of taxes, interest and penalties;

2. To recover debts from the company;

3. To set off claims other than homogeneous counter-claims which satisfy both of the following conditions: arose

before the date of entry into force of the court's order to open restructuring proceedings and such set-off is possible

in accordance with the provisions of the tax legislation on off-setting of tax overpayment (arrears);

4. To calculate penalties and interest on the Company’s obligations arising before the date of entry into force of the

court's order to open restructuring proceedings;

5. To fix forced mortgage, easements, usufruct;

6. To pledge the property, guarantee, ensure or otherwise guarantee the fulfilment of obligations of other persons;

7. To sell or otherwise transfer the assets of the company necessary to maintain its viability.

The company under restructuring pays all current contributions, i.e. all payments and contributions necessary to ensure

the business activities of the company, including the compulsory contributions, which are made during the restructuring

proceedings, starting from the date of entry into force of the court's order to open restructuring proceedings.

The Company's obligations to creditors, arising before the date of entry into force of the court's order to open restructuring

proceedings, i.e. before 20 September 2022, will be executed with the terms and conditions set out in the restructuring

plan.

Meeting of the Company's creditors, at which the draft restructuring plan will be discussed, will be convened in March 2023

(Note 34).

The company under restructuring continue commercial activities. The corporate commercial activities managed by

the company's management bodies in accordance with their competence, as set out in the Company's statutes and other

documents governing the Company's activities, and in accordance with the restrictions laid down in the Law on Insolvency

of Legal Entities and in the order of Kaunas District Court of 8 September 2022.

On 2 January 2023, Snaigė AB held an Extraordinary General Meeting of Shareholders, at which the shareholders

approved the Company's restructuring plan.

On 20 January 2023, by the decision of the Kaunas District Court, the deadline for submitting the restructuring plan of

Snaigė AB to the court was extended until 20 March 2023.

On 27 February 2023, an Extraordinary General Meeting of Shareholders approved the revised restructuring plan.

On 20 March 2023, a request for approval of the restructuring plan was submitted to the Kaunas District Court.

On 4 April 2023, the Kaunas District Court did not approve the restructuring plan of AB Snaigė.

On 12 April 2023, a decision was taken to appeal against the decision of the Kaunas District Court not to approve the

restructuring plan.

34. Subsequent events

On 28 April 2023 the ordinary General Meeting of Shareholders of Snaigė AB is convened.

Agenda of the Meeting:

The agenda question 1: Consolidated annual report of “Snaigė” AB on the company’s activity for 2022 with information

about the Company strategy and its implementation;

The agenda question 2: Auditor's report on the company's 2022 financial statements;

The agenda question 3: Approval of the set of financial statements of the company for 2022;

The agenda question 4: Approval of distribution of profit (loss) of Snaigė AB for 2022;

The agenda question 5: Election of the Board for a new term;

The agenda question 6: Election of the Audit Committee for the new term.

The agenda question 7: Approval of an amendment to the Company's restructuring plan.

Consolidated annual report for 2022

UNDER RESTRUCTURING

SNAIGĖ AB AND GROUP CONSOLIDATED

ANNUAL REPORT, CORPORATE GOVERNANCE

REPORT AND CORPORATE REMUNERATION

REPORT

2023-04-19

Consolidated annual report for 2022

Confirmation of responsible persons

Members of the Company's management bodies, employees and the head of administration and the

Company's consultants, responsible for preparation of the consolidated annual report and the

consolidated financial statements for 2022, confirm that, to their knowledge, the annual consolidated

financial statements prepared in accordance with International Financial Reporting Standards as adopted

by the European Union are accurate and present fairly the assets, liabilities, financial position, profit or

loss of the Company and the consolidated entities, and that the consolidated annual report correctly

presents an overview of business development and operations, the condition of the Company and its

consolidated companies together with a description of main risks and uncertainties encountered.

Report prepared 19 of April, 2023

Place of preparation of the report: Snaigė AB, Pramonės str. 6, Alytus

Consolidated annual report for 2022

Contents

1 GENERAL INFORMATION ............................................................................................................................... …...60

1.1 Reporting period for which the annual report is prepared .................................................................................. 60

1.2 Basic information about the company ................................................................................................................ 60

1.3 The type of the Company’s main business activities ......................................................................................... 60

1.4 The Company’s group structure ........................................................................................................................ 60

1.5 Information about the Company’s offices and affiliates ...................................................................................... 60

1.6 Short history of the Company’s activities ........................................................................................................... 61

1.7 Mission. Vision. Values ...................................................................................................................................... 62

1.8 List of the most important events in 2022 .......................................................................................................... 63

2. CORPORATE GOVERNANCE REPORT

2.1 AB SNAIGĖ GOVERNANCE AND MANAGEMENT ............................................................................................. 63

2.1.1 The Company’s Management bodies ............................................................................................................. 63

2.1.2 Corporate governance bodies ........................................................................................................................ 63

2.1.3 The Company’s group’s management structure ............................................................................................. 65

2.1.4 Procedures of changing the Company’s articles of association ...................................................................... 65

2.2 AB SNAIGĖ AUTHORISED CAPITAL, SHAREHOLDERS, INFORMATION ABOUT SECURITIES .................... 66

2.2.1 Issuer’s authorized capital .............................................................................................................................. 66

2.2.2 Shareholders .................................................................................................................................................. 66

2.2.3 Information about trading of issuer’s securities in the regulated markets ....................................................... 67

2.2.4 Information about the repurchase of own shares ............................................................................................ 69

2.2.5 Dividends ........................................................................................................................................................ 69

2.2.6 Contracts with public circulation of securities dealers ..................................................................................... 69

2.2.7 Restrictions on transfer of securities ............................................................................................................... 69

2.3 SNAIGĖ OPERATING REVIEW ........................................................................................................................... 70

2.3.1 General rates, describing the Company's business performance, their behaviour ......................................... 70

2.3.2 Production ...................................................................................................................................................... 70

2.3.3 Sales ............................................................................................................................................................... 71

2.3.4 Supply ............................................................................................................................................................. 74

2.3.5 Employees and human resource policy .......................................................................................................... 74

2.3.6 Investment policy ............................................................................................................................................ 76

2.3.7 Environment protection ................................................................................................................................... 77

2.3.8 Risk factors related to the business of the Company ...................................................................................... 77

2.3.9 Related party transactions .............................................................................................................................. 78

2.4 DISCLOSURE FORM CONCERNING THE COMPLIANCE WITH THE GOVERNANCE CODE FOR THE

COMPANIES LISTED ON THE REGULATED MARKET….…………………………………………….........................78

3 OTHER INFORMATION ABOUT SNAIGĖ AB ......................................................................................................... 93

3.1 Membership in associated organizations ........................................................................................................... 93

3.2 Patents, licenses................................................................................................................................................ 93

3.3 Recent and the most important events of the Company .................................................................................... 93

3.4 Strategies and plans ........................................................................................................................................ 104

4 CORPORATE REMUNERATION REPORT ……………...……………………………..............................................105

Consolidated annual report for 2022

1. GENERAL INFORMATION ABOUT AB SNAIGĖ

1.1 Reporting period for which the annual report is prepared

Annual report is prepared for year 2022.

1.2 Basic information about the company

The name of the Company – SNAIGĖ AB (hereinafter referred to as “the Company”)

Authorised capital as of 31 December 2022 – EUR 6,735,807.15

Address – Pramonės str. 6, LT-62175 Alytus

Phone – (+370 315) 56 206

Fax – (+370 315) 56 207; (+370 315) 56 269

E-mail – snaige@snaige.lt

Internet web page – http://www.snaige.lt

Legal organisation status – legal entity, public limited company

Registered as a Public Enterprise of the Republic of Lithuania (hereinafter referred to as LR) on 1 December 1992 in

the Municipality Administration of Alytus; registration number AB 92-119; enterprise register code 249664610. The

latest Articles of Association of Snaigė AB were registered on 24 November 2021 in the Register of Legal Entities of

the Republic of Lithuania.

1.3 The type of the Company’s main business activities

The main business activities of the Company are manufacture of refrigerators and freezers, the manufacture of

household electrical appliances and other activities permitted by the laws of Lithuania as indicated in the Articles of

Association.

1.4. The Company’s group structure

1.4.1 Information about the Company‘s subsidiaries

The Company’s group consists of the refrigerator manufacturer Snaigė AB, based in Alytus, and the following

subsidiaries:

• Almecha UAB. Main activity – manufacturing of miscellaneous machinery and equipment. The enterprise was

registered in November 2006. Address: Pramonės str. 6, Alytus, Lithuania.

• Snaigė-Ukraine OOO. Main activity – sales of refrigeration appliances, sales, consulting and services. The

enterprise was registered in November 2002. Address: Grushevski str. 28-2a/43 Kiev, Ukraine

1.5 Information about the Company’s offices and affiliates

The Company has no offices and affiliates.

Consolidated annual report for 2022

1.6 Short history of the Company’s activities

• 1963 – The first household refrigerators in Lithuania are manufactured in Alytus.

• 1975 – Over 1 million refrigerators manufactured by this year.

• 1983 – The Company started export to foreign countries.

• 1990 – The Company has come under the control of the Republic of Lithuania.

• 1992 – The Company has been privatised and registered as a public limited liability the Company.

• 1995 – The Company was retooled. Use of Freon in the manufacture of refrigerators is discontinued. All the

Company's products are manufactured only from ecologically clean materials.

• 1997 – The Company has achieved ISO 9001 certification for implementing international quality management

standards.

• 2000 – The Company's quality management system was successfully re-certified for ISO 9001.

• 2001 – The Company has achieved ISO 14001 certification for implementing an environmental management

system.

• 2002 – The Company started to produce a refrigerator with R600a environmentally friendly refrigerant; Started A +

energy efficiency refrigerator production; Snaigė become EU project "Energy +" participant.

• 2003 – A + Grade energy efficiency fridge Snaigė RF310 won the LCI contest "Product of the Year” Gold Medal.

• 2004 – The Company opened its new plant in Kaliningrad.

• 2006 – The Company acquired 100% of the capital of the Russian wholesale and retail Company Liga Service.

• 2006 – Snaigė has made its 10 millionth refrigerator.

• 2006 – Display-Cooler Snaigė CD480 awarded by golden medal in annual competition "Lithuanian product of the

Year".

• 2006-2007 Snaigė recognised as the most innovative Lithuanian Company.

• 2007 – The Company's environmental management system ISO 14001 successfully certificated.

• 2007 – Snaigė Alytus plant started serial production of new line models “Snaigė ICE LOGIC” production.

• 2007 – Refrigerator Snaigė ICE LOGIC RF34SH A+ awarded "Product of the Year" gold medal.

• 2008 Snaigė ICE LOGIC RF31SM A+ was assesed as the "Product of the Year" and awarded a gold medal.

• 2008 – Snaigė awarded for "Innovation Award“.

• 2009 – The loss of production and devaluation of the ruble conditioned to close the Company's factory in

Kaliningrad.

• 2010 – AB Snaigė's environmental protection and occupational safety and health management systems have been

successfully re-certified for a new three-year period.

• 2010 – Refrigerator Snaigė ICE LOGIC RF34SM A++ awarded by golden medal in annual competition "Lithuanian

product of the Year".

• 2011 – Refrigerator Snaigė ICE LOGIC Glassy RF34SM A++ awarded by golden medal in annual competition

"Lithuanian product of the Year".

• 2011 Russian company Polair, indirectly acting through UAB VAIDANA, acquired 59.86% of all shares of the

Company.

• 2013 – Snaigė received the Lithuanian Exporter of the Year Award.

• 2013 – Snaigė won within category „The Innovative company“ and was awarded with the „Innovation Prize 2013“.

• 2013 – the first Lithuanian refrigerator RF34NM with frost-free "No Frost" refrigeration system is ready and launched

on the market.

• 2013 – Snaigė ICE LOGIC Glassy "Side by side" refrigerator C 29SM - freezer F 22SM A++ is awarded by golden

medal in annual competition "Lithuanian product of the Year.

• 2013 – Production of the highest energy efficiency class A +++ refrigerator Snaigė ICE LOGIC RF34SM is ready.

• 2013 – AB Snaigė participated in the project for small and medium business "Gazelė 2013" organized by "Verslo

žinios" and is recognized as one of the most successful and fastest growing Lithuanian companies.

• 2014 – Refrigerator Snaigė NO FROST RF34 awarded by golden medal in annual competition "Lithuanian product

of the Year".

• 2015 – In September, the Company attended the international trade show for home appliances IFA 2015 in Berlin

where it presented its latest products. SNAIGĖ’s stand attracted much interest from both the attendees of the trade fair

Consolidated annual report for 2022

and the potential clients. What is more, a fridge upholstered in faux crocodile leather raised great interest from the

journalists of the international newspaper and portal USA TODAY.

• In 2015, the Company launched a new commercial display fridge CD40.

• In 2015, Snaigė AB launched its trading operations and successfully positioned itself in Norway, Sweden, Israel,

Georgia and Azerbaijan.

• In 2015, the Company introduced its customers to a few new and unique products: luxurious double fridge-freezers

with glass surface doors RF34TWINS and a single-door fridge C31 welcomed by the buyers in France and across the

Scandinavian countries, along with new products: cooler C 31 and freezer F 27 combination with glass surface doors.

• In 2015, existing fridges had enhancements: electronic controls in SNAIGĖ Ice Logic fridge-freezers, introduced.

• In 2015, the mass production of fridges with a freezer at the bottom RF31/RF36 A++ with partial NO FROST system

was launched.

• In 2015, the design of the Young and the Premium refrigerators was implemented for Polish manufacturer AMICA.

• In 2016, AB Snaigė fridges climbed to the top of the Lithuanian market. The Company had an 18% share of the

refrigerator market.

• In 2016, the Company launched its export operations to Jordan.

• In 2016, the Company launched its cooperation with one the major Czech home appliance retail chain FAST.

• In 2016, the Company’s products were presented in three trade shows in the Czech Republic held by the Company’s

trade partners.

• In 2017, AB Snaigė developed two new refrigerator design lines SNAIGĖ Fresh Inn and SNAIGĖ Retro and

prepared them for mass production.

• In 2017, AB Snaigė took part in a trade show for home appliances in the Czech Republic.

• In 2017, the Company began trading in Belarus.

• In 2018, the Company's business was repeatedly awarded the ISO 9001 certificate.

• In 2018, the mass production of the new design lines SNAIGĖ Fresh INN and SNAIGĖ Retro was launched.

• In 2018, Snaigė's own stand was opened in a store owned by the Bulgarian home appliance chain Technopolis.

• 2019 – a 700 l commercial refrigerator was developed.

• 2019 – an inverter compressor has been introduced in refrigerators with a frost-free refrigeration system.

• 2020 – Serial production of professional refrigeration equipment "block system" has started.

• 2020 – Developed and launched serial production of new refrigerators with the freezer on top (FR25, FR26, FR27).

• 2021 – The SNAIGĖ medical refrigerator has received DIN13277 certification.

• 2021 – The Company started serial production of medical refrigerators.

• 2021 – A refrigerator for a professional kitchen has been developed.

• 2022 – The freezer CF70 MF was designed for professional kitchens

• In 2022, the Company began a restructuring process.

1.7 Mission. Vision. Values.

Mission

Our Mission is to develop financially disciplined business that provides consumers with good value and quality products

and our shareholders with top-tier returns on their investments.

Vision

To become the most reliable home appliances brand for consumers in the Eastern Europe and the preferred choice for

OEM supplier in the Western Europe.

Values

Open minded Trustworthy Teamwork Flexibility

Consolidated annual report for 2022

1.8 List of the most important events in 2022

• 2022 – The freezer CF70 MF was designed for professional kitchens.

• 2022 – The black refrigerator CD35DM has been released.

• 2022 – New colours added to the retro design line: apple green, yellow and cobalt blue.

• In 2022, RF27SM launched with a higher energy class E.

• 2022 – The company started the restructuring process.

• 2022 – The company started selling its products in Greece.

• 2022 – SNAIGE AB started selling monoblocks in Germany.

2. CORPORATE GOVERNANCE REPORT

2.1 AB SNAIGĖ GOVERNANCE AND MANAGEMENT

2.1.1 The Company’s Management bodies

2.1.1.1 Management bodies

Management bodies:

• General shareholders meeting;

• The management board is formed of five members and elected for the period of 4 years;

• Head of the Company – Managing Director.

The calling of general shareholder meeting, the competence of the meeting has no differences from the procedures

and competences indicated in the Law on Companies of Republic of Lithuania.

The management board is elected and resigned by general shareholders meeting according to the procedures

indicated by the Law on Companies. The management board has a right to take decision to issue bonds. The

competence of the management board has no other differences from the competences indicated in the Law on

Companies. The work procedures of the management board are set by the board’s work rules of procedure.

The competence of the head of the Company, his nomination and resignation procedures are not different from those

indicated in the Law on Companies.

The Company has the audit committee which is the operating collegial administrative body and which was elected by

shareholders in 2009. The audit committee is operating by audit committee’s labour regalement. During the General

Meeting of Shareholders held in 2019, the shareholders appointed two elected independent members of the Board to

the Audit Committee and authorized the Board of the Company to appoint members to the Audit Committee in the

future.

2.1.1.2 Legal basis of the Company’s operations

Snaigė AB uses the Company’s articles of association, Law on Companies of the Republic of Lithuania, other legal

acts issued by the Republic of Lithuania and European Union as legal guidelines for operations.

2.1.2 Corporate governance bodies

2.1.2.1 Information about the members of management bodies with regard to the share of the

Company’s authorized capital

NAME

Position

Available

number of

shares, units

Share capital,

per cent

Votes, per

cent

BOARD

Aleksey Kovalchuk

Snaigė AB chairman of the board

Konstantin Kovalchuk

Snaigė AB member of the board

Anna Korneeva

Snaigė AB member of the board

ADMINISTRATION (Managing Director and Chief Financial Officer)

Mindaugas Sologubas

Snaigė AB Managing Director

Vytautas Adomaitis

Snaigė AB Chief of the Accounting

and Finance Department

Consolidated annual report for 2022

2.1.2.2 Information on the management bodies involvement in other companies, institutions and

organizations

Participating in other companies activities and interests (31 December 2022):

Name

Name of organisation, position

Share of the capital and

votes available in other

companies, in percentage

Aleksey Kovalchuk

Does not participate in other Lithuanian companies activities

and interests

Konstantin

Kovalchuk

Does not participate in other Lithuanian companies activities

and interests

Anna Korneeva

Does not participate in other Lithuanian companies activities

and interests

Mindaugas

Sologubas

Almecha UAB member of the board

Verslo Architektūra UAB Managing Director

100%

Vytautas Adomaitis

Does not participate in other Lithuanian companies activities

and interests

2.1.2.3 Chairman of the board, head of administration and chief financial officer

Name

Education, profession

Workplaces in the last 10 years and positions in

them

Aleksey

Kovalchuk

Finance Academy under the

Government of the Russian

Federation

Managing Director of OAO Polair 2009–2013

Managing Director of ZAO Polair-Nedvizhimost

Advisor JSC AVIKON

Mindaugas

Sologubas

Stockholm School of Economics in

Riga, Bachelor of Economics and

Business

Vytautas Magnus University, Master

of Finance and Banking

Managing Director of SNAIGE AB from 21 September

2019.

Finance Director of SNAIGE AB from September 2014.

Director of Verslo Architektūra UAB from August 2013.

Director of ZAO LIGRIS, Nikolaev, Ukraine, from

October 2011 to July 2013.

Chief Financial Officer of GRANEX UAB from June 2008

to October 2011.

Vytautas

Adomaitis

Vilnius State University, Faculty of

Economic Cybernetics and Finance,

specialization of economist-

accountant

Head of the Accounting and Finance Department

SNAIGE AB from 03 October 1983.

2.1.2.4 Information about start date and end date of the office term of each member of the

management body

NAME

Start date of the office

term

End date of the office term

BOARD

Aleksey Kovalchuk

14/12/2011

Until February 2023

Oleg Tsarkov

30/04/2015

13/10/2022

Konstantin Kovalchuk

30/04/2018

Until February 2023

Anna Korneeva

15/05/2019

Until February 2023

ADMINISTRATION (Managing Director and Chief Accountant)

Mindaugas Sologubas

21/09/2019

Term less agreement

(23/09/2014 – 20/09/2019

Finance Director Snaige AB)

Vytautas Adomaitis

03/10/1983

Term less agreement

Consolidated annual report for 2022

2.1.2.5 Information regarding valid conviction of the members of the management bodies for the

offences against property, farming procedure and finance

There is no such information.

2.1.2.6 Information about benefits and loans granted to governing bodies

No benefits and loans granted to governing bodies in 2022.

2.1.2.7 Information about the total amounts and average amounts of the salaries, tantiemes and

other profit benefits paid by the Company during the reporting period per person

During 2022, no salaries were paid to the board members.

2.1.2.8 Information about the salaries, tantiemes and other profit benefits paid to the members of

the Company’s Supervisory Board and the Board sourced from the enterprises where the share of

the authorized capital owned by the Company amounts to more than 20 percent

No such payments were made during the accounting period.

2.1.2.9 Information about loans, warranties and securities of the performance of liabilities granted

to the members of the management bodies during the accounting period

No loans, guarantees or securities were issued for the members of managements bodies during the accounting period.

2.1.2.10 Important agreements, the party of which is the Company and which would take effect,

change, or would stop being valid in case the control of the Company changes, also the effect of

such agreements, except from the cases when the disclosure of such agreements would result in

large damage to the Company

As far as it is known to the Company, there are no such agreements.

2.1.2.11 The Company’s and its management bodies members or employees agreements,

describing compensation in case the members or employees resign, or are fired without

grounded reason, or if their employment ends because of change of control of the Company

As far as it is known to the Company, there are no such agreements.

2.1.3 The Company’s group’s management structure

Mindaugas Sologubas – Managing Director.

Rūta Petrauskaitė – Marketing Director.

Ruslanas Lugovik - Executive Director.

Vytautas Adomaitis – Chief of the Accounting and Finance Department.

2.1.4 Procedures of changing the Company’s articles of association

The articles of association of the Company can be modified by the decision of general shareholders meeting, with the

qualified majority of 2/3, except from the cases described in the Law on Companies.

After the general meeting of the shareholders takes a decision to modify the articles of association, the list of all the

modified text in the articles is made and signed by the attorney of the general meeting.

Modified articles and documents confirming the decisions to modify the articles have to be submitted to the register of

the enterprises during the period specified by the law.

In other cases, not described by the Company’s articles of association the Company follows the Civil Code of the

Republic of Lithuania, Law on Companies and other legal acts of the Republic of Lithuania.

Consolidated annual report for 2022

2.2 AB SNAIGĖ AUTHORISED CAPITAL, SHAREHOLDERS, INFORMATION ABOUT SECURITIES

2.2.1 Issuer’s authorized capital

2.2.1.1 The authorized capital registered in the enterprise register

Name of the securities

Amount of

the securities

Nominal

value, EUR

Total nominal value,

EUR

Share of the

authorized capital,

in percentage

Ordinary registered shares,

ISIN LT0000109274

39,622,395

0.17

6,735,807.15

100

2.2.1.2 Changes in authorized capital during the last 5 years

Registration of

changed

authorized capital

The size of the

authorized capital

before the change

Change

Reason for change

The size of the

authorized capital

after the change

24/09/2019

11,886,718.50 EUR

- 1,584,895.80

The reduction of the

authorised capital by

reducing nominal value,

in order to comply with

the provisions of the Law

on Companies of the

Republic of Lithuania

10,301,822.70 EUR

19/08/2020

10,301,822.70 EUR

- 3,566,015.55

Reduction of the

authorized capital by

reducing the nominal

value by transferring this

amount to the revaluation

reserve.

6,735,807.15 EUR

2.2.1.3 Information with regard to prospective increase of the authorized capital by converting or

trading the issued loans or secondary securities for the shares

There are no issued debts or secondary securities.

2.2.2 Shareholders

2.2.2.1 Largest shareholders

4.09% of the Company’s authorized capital is owned by the companies and individuals registered in Lithuania, 95.91%

for non-residents. As of 31 December 2022, the total number of the Company’s shareholders comprised 1153 (as of

31 December 2021 – 1080). The major shareholder of the Company is Sekenora Holdings Limited, which controls

91.10% of shares.

The major shareholders who own or control more than five percent of the issuer’s authorized capital as of 31 December

2022 are listed below:

Names (company

names, addresses,

enterprise register

codes) of the

shareholders

Amount of the ordinary

registered shares

available, in pcs.

Share of the authorized capital and votes available, in

percentage

Total

incl. the

ones owned

by the

shareholder

Total

incl. the ordinary

registered shares

owned by the

shareholder

Total incl.

the share of

the entities

group

operating

jointly, in

percentage

of the

votes

of the

capital

share of

the

appointed

votes

of the

capital

Sekenora Holdings

Limited, 32 Kritis str.,

Papachristoforou

Building, Cyprus,

HE371000

36,096,193

91.10

Consolidated annual report for 2022

2.2.2.2 Shareholders with special control rights

There are no shareholders with special control rights.

2.2.2.3 Restrictions of shareholders voting rights

All the shareholders have equal voting rights.

2.2.2.4 Shareholders agreements, about which the Issuer is informed and due to which the

transfer of securities or voting rights can be restricted

The issuer has no information about any shareholder agreements of such type.

2.2.3 Information about trading of issuer’s securities in the regulated markets

2.2.3.1 Securities included in the trading lists of regulated markets

39,622,395 ordinary registered shares of Snaigė AB are included into the Secondary trading list of the NASDAQ OMX

Vilnius Stock Exchange. The total nominal value of the shares is EUR 6,735,807.15. ISIN LT0000109274. The nominal

value of one share is EUR 0.17.

2.2.3.2 Trade of the issuer’s securities in stock exchanges and other organized markets

Trade of the Company’s ordinary registered shares in the securities stock exchange was started on 11 August 1995.

The ordinary registered shares of Snaigė AB have been listed in the Official trading list of NASDAQ OMX Vilnius Stock

Exchange since 9 April 1998 until 8 May 2009.

Since 8 May 2009, the Company on its own initiative requested NASDAQ OMX to switch its shares from NASDAQ

OMX Vilnius Official listing and add them to the NASDAQ OMX Vilnius Secondary listing.

2.2.3.2.1 Trade on NASDAQ OMX Vilnius stock exchange

Trade in the Company’s shares during 2019-2022 (EUR)

Price

2022

2021

2020

2019

Open

0.19

0.22

0.15

0.13

High

0.194

0.28

0.24

0.2

Low

0.1

0.178

0.102

0.116

Last

0.12

0.19

0.151

Traded volume

248,731

745,301

280,479

200,011

Turnover, million

0.04 EUR

0.16 EUR

0.05 EUR

0.03 EUR

Capitalisation, million

4.75 EUR

7.53 EUR

5.98 EUR

Below you can find the graphs of the Company’s shares turnover and prices during last 5 years. The data from AB

NASDAQ OMX Vilnius webpage:

https://nasdaqbaltic.com/statistics/lt/instrument/LT0000109274/trading

Consolidated annual report for 2022

The price of share is in EUR because the trade of shares is in EUR from 22 November 2010.

The price of share during the reporting year (information from AB NASDAQ OMX Vilnius webpage):

https://nasdaqbaltic.com/statistics/lt/instrument/LT0000109274/trading

The share prices graphs of OMX Baltic Benchmark, OMX Vilnius indexes and Snaigė AB for the period from 31

December 2021 until 31 December 2021 are presented below. The information is from AB NASDAQ OMX Vilnius

webpage:

https://www.nasdaqbaltic.com/statistics/lt/charts

Consolidated annual report for 2022

Baltic Market indexes

2.2.3.2.2 Trade on other regulated markets

The securities are not traded on other regulated markets.

2.2.3.3 Capitalization of securities

Capitalisation of Snaigė AB shares and the total capitalisation of shares listed on AB NASDAQ Vilnius on the last

trading days of the last year:

Baltic equity list

2022

2021

2020

2019

Capitalization, million

4.75 EUR

7.53 EUR

5.98 EUR

2.2.4 Information about the repurchase of own shares

During 2022, no repurchase of own shares was made. The Company had no own shares at the end of 2022.

2.2.5 Dividends

The Company does not have an established procedure for allocation of dividends. The General Shareholders’ Meeting

decides whether to pay dividends.

2.2.6 Contracts with public circulation of securities dealers

On 20 May 2013, Snaigė AB entered into a contract with UAB FMĮ Orion securities (A. Tumėno str. 4, Vilnius) on the

accounting of the financial instruments issued by the Company and management of private securities accounts.

2.2.7 Restrictions on transfer of securities

There are no restrictions on the transfer of securities issued.

Consolidated annual report for 2022

2.3. SNAIGĖ OPERATIONS REVIEW

2.3.1 General rates, describing the Company's business performance, their behaviour

The financial figures for the last year are presented in general.

(consolidated data):

2022

2021

2020

Turnover (continuing operations), EUR thousand

21,220

33,538

29,418

Gross profit (continuing operations), EUR thousand

(609)

3,249

3,150

Net profit (loss) from continuing operations, EUR

thousand

(5,170)

(1,974)

158

Net (loss) from discontinued operations, EUR thousand

Net profit (loss), EUR thousand

(5,170)

(1,974)

158

Average share price, EUR

0.147

0.215

0.163

Financial figures

2022

2021

2020

Profit before tax indicator, % (current year profitability of

continuing operations)

-27.02%

-5.81%

0.42%

General mark-up (continuing operations), %

-2.87%

9.69%

10.71%

EBITDA mark-up (continuing operations), %

-12.95%

1.50%

9.2%

Solvency ratio, % (general short-term solvency)

333.93%

91.06%

112.79%

Debt to assets ratio, % (general debt ratio)

108.01%

86.43%

77.65%

Return on average shareholders’ equity (continuing

operations), %

-357.93%

-55.29%

2.85%

Shares indicators

2022

2021

2020

Net profit per share (continuing operations), EUR

-0.13

-0.05

0.004

Net loss per share (discontinued operations), EUR

Net profit per share (total), EUR

-0.13

-0.05

0.004

Average annual share market price, EUR

0.147

0.215

0.163

EBITDA per share (continuing operations), EUR

-0.07

0.01

0.07

EBITDA multiplier (EBITDA per share / Average annual

share market price)

-0.48

0.05

0.43

Total dividends, EUR thousand

Dividends per share, EUR

Average net book share value (continuing operations),

EUR

-0.04

0.09

0.14

2.3.2 Production

2.3.2.1 The Company's product portfolio

Snaigė AB specialises in high-quality household refrigerators and freezers. It also produces refrigerators for commercial

use and for hotels and restaurants, as well as industrial refrigeration units. Spare parts for refrigerators, tools and

equipment are also produced.

The Company produces various high quality models of household refrigerators, refrigerator-showcases, wine

refrigerators, freezers and their spare parts.

The Company’s main products is refrigerators. They are classified in several main categories:

• Combined refrigerators with separate external doors;

• Single cooler refrigerators;

• Freezers;

• Commercial and medical refrigerators.

The industrial refrigeration segment - monoblocks - continues to develop.

Combination refrigerators with separate external doors were the most produced and sold in 2022.

Consolidated annual report for 2022

The consolidated sales figures for the last three years are as follows:

Type of activities

2022

2021

2020

units

Company’s produced refrigerators sold, units

77,633

100

155,259

100

147,913

100

including:

Combined refrigerators with separate external door

35,290

45.5

82,104

52.9

77,064

52.1

Domestic refrigerators (single cooler)

12,000

15.4

25,188

16.2

17,728

12.0

Freezers

6,061

7.8

18,660

12.0

32,950

22.3

Commercial refrigerators

23,520

30.3

29,097

18.7

20,171

13.6

Monoblocks

762

1.0

210

0.1

2.3.2.2 Termination or reduction of production volume with the critical effect on the Company’s

performance during the recent 3 economical years

During the recent 3 economical years no termination or reduction of production volumes with a critical effect on the

Company’s performance occurred.

2.3.3 Sales

The company divides its sales markets into the following main groups by importance of sales markets and geographic

distribution: Baltic market (Lithuania, Latvia and Estonia), Eastern market (Ukraine, Moldova, Kazakhstan,

Uzbekistan, Tajikistan, Kyrgyzstan), European market (Germany, Italy, Poland, France, Belgium, the Netherlands,

Portugal, the Czech Republic, Norway, other countries of Western and Central Europe).

In 2022, Snaigė AB sold over 77 thousand refrigerators of its own production. Revenue from sales of main production

was over EUR 19.2 million, 38 percent less than last year. Sales on the European market accounted for the majority of

sales revenue (82.4 percent). Lower figures (9.7 percent) were on the Eastern market. The lowest sales revenue (8

percent) was on the Baltic market. Exports accounted for 92 percent of total product sales, i.e. EUR 17.7 million.

On 2020, the Company started production of monoblocks and cold rooms, the sales of which in 2022 amounted to

762 units and EUR 589 thousand.

2022 m. 2021 m. 2020 m.

Monoblocks

Commercial refrigerators

Freezers

Domestic refrigerators (single

cooler)

Combined refrigerators with

separate external door

Consolidated annual report for 2022

Company’s sales in 2022 (according to sales revenue):

European market

In 2022, Snaigė AB sold 63 thousand units of refrigerators on the European market and generated revenues of EUR

15.9 million, 30.5% less than in 2021. The largest sales and revenues were in Germany (21.1 thousand units, EUR 5.2

million), Poland (7.5 thousand units, EUR 2.2 million) and the Czech Republic (7.1 thousand units, EUR 1.8 million).

Sales in the European market in 2022 (according to income):

Eastern market

In 2022, the Company sold 8.5 thousand units of refrigerators on the Eastern market and earned sales revenue of EUR

1.86 million in, i.e. in 60 percent less than 2021. The main factor contributing to the decline in sales was the military

situation in Ukraine. Sales in Ukraine decreased to - 6.9 thousand units and sales revenue of EUR 1.5 million.

In 2022, Snaigė AB has terminated trade relations with Russia.

Trade relations with Moldova, Kyrgyzstan and Tajikistan continued to develop. In 2022, the Company sold 1,500 units

of refrigerators in these markets and generated revenues of EUR 0.36 million.

East; 9,7%

Baltic; 8,0%

Europe; 82,4%

Germany; 32,84%

Poland; 14,07%

Czech Republic;

11,40%

Austria; 6,93%

Switzerland; 6,10%

Italy; 6,10%

Norway;

3,47%

Romania; 4,14%

Morocco; 2,49%

France; 1,66%

Bulgaria;

1,48%

Finland; 1,65%

Portugal; 1,62%

Sweden; 1,32%

Netherlands; 1,06%

Hungary; 0,72%

Serbia;

0,62%

Croatia;

0,67%

Malta; 0,45%

Bosnia and

Herzegovina; 0,32%

Slovenia; 0,42%

Slovakia; 0,22%

Consolidated annual report for 2022

Sales in the Eastern market in 2022 (according to sales revenue):

Baltic market

In 2022, Snaigė AB sold more than 6.08 thousand refrigerators in the Baltic States market and generated revenues of

EUR 1.5 million. This is 56.6 percent less in revenue as compared to the previous year.

In 2022, Snaigė AB sold about 5.7 thousand refrigerators in Lithuania, generating sales revenues of more than EUR

1.4 million. In Estonia, 387 refrigerators were sold in 2022, generating revenue of over EUR 0.1 million.

Sales in the Baltic market in 2022 (according to income):

SNAIGĖ brand portfolio

In 2022, the Company sold 31.2 percent of the products with its own brand SNAIGĖ. Besides these, the Company

produced refrigerators under other brands of trade partners and retail networks such as Severin, Whirlpool, Nabo, KBS,

Point, Cool, Exquisit, Bomann, Essentiel and others.

The Company's brand portfolio in 2022 (according to income):

Ukraine; 80,5%

Moldavia; 9,3%

Kyrgyzstan;

7,3%

Belarus; 2,5%

Tajikistan; 0,4%

Lithuania; 92,5%

Estonia; 6,6%

Latvia; 0,85%

Other brands;

68,8%

SNAIGĖ; 31,2%

Consolidated annual report for 2022

2.3.4 Supply

The materials and completing parts are supplied to the Company from more than 20 countries worldwide. European

manufacturers and raw materials suppliers constitute the major part of them.

The strategic suppliers are the following: SECOP GmbH, Nidec Global Appliances Europe S.r.l., Depsol Technologies,

Voestalpine Eurostahl GmbH, LU-VE Group, Danfoss Appliance Controls, Ebm-papst Landshut GmbH, Coprel srl,

SINTUR Sp. z o.o., MARCEGAGLIA POLAND sp. z o.o., Lisiplast UAB, Hoda UAB, Profilita UAB, Vilkritis UAB,

REHAU.

The priorities set in the purchase strategy of the Company are high quality assurance and effective logistics, competition

between suppliers and continuous search for alternative raw materials. Competition between the suppliers and search

for alternative raw materials stimulate continuous improvement of the purchased product. The technical servicing teams

of Snaigė AB suppliers closely cooperate with the technicians and engineers of the Company in search for common

technical solutions increasing quality and decreasing costs of the product.

2.3.5 Employees and human resource policy

2.3.5.1 The Company’s human resource policy

The Company’s success depends not only on its size, image, strategy, but also largely on how it treats its employees.

All the challenges and changes faced by the Company are related to the employees, so business effectiveness firstly

depends on the ability to manage human resources.

The Company’s human resource policy and management is comprised of human resource planning, employees’

staffing (recruiting, selection, admission, and retention), employees’ development, evaluation, motivation, norms of

actions, assurance of occupational safety and social conditions.

While facing changes and new challenges, it is most important for the Company to retain qualified, skilled, motivated

personnel, able to implement set tasks and help the Company achieve its strategic goals, with as low costs as possible.

Strategic management of human resources. The aim of the personnel policy is to help the Company to adapt to new

requirements of business environment and accomplish strategic goals while increasing administration effectiveness,

connecting human resource practice with the Company’s common business strategy, evaluating human resources.

Human resource planning. To ensure effective number of employment positions and structure planning, to ensure

human resource demand planning, evaluation of planning quality.

Analysis of operations. In order to ensure more effective management of human resources it is necessary to evaluate

new operation tasks, to spin off ineffective operations, doubling of functions, regroup and reassign functions.

Evaluation of activities and career. The goal of activities evaluation – to align personnel activities with the Company’s

goals to a maximum extent. The process of activities management is the setting of clear and achievable goals,

monitoring of the progress, coordination of employee’s goals, correction of set goals, annual evaluation of personnel

activities. While planning a career, it is important that it is not only directed to the past i.e. results of person’s work, but

also to the future – a person’s abilities, their capacity to change, their ability to implement more complex tasks – into

his potential.

Personnel motivation. In current difficult conditions, it is necessary to pay more attention to strengthening social

motives: encourage personal goals, increase responsibility taken, increase association with a group or a team, form

conditions to realize management, self-expression skills.

2.3.5.2 The employees of the Company in 2020–2022 according to the personnel groups*:

Employees

2022

2021

2020

Amount

Average

salary,

EUR

Amount

Average

salary,

EUR

Amount

Average

salary,

EUR

Managers

4.7

3,504

4.0

3,485

4.2

3,397

Specialists

17.3

1,392

16.8

1,352

17.3

1,259

Workers

334

78.0

912

411

79.2

907

386

78.5

820

In total:

428

100

1,123

519

100

1,100

492

100

1,012

* Average annual data

Consolidated annual report for 2022

2.3.5.3 The structure of the Company’s employees in according to education level*:

Education level of the employees

2022

2021

2020

Amount

University education

20.1

100

19.3

19.9

Professional high school education

287

67.0

348

325

66.1

Secondary education

12.9

13.2

Uncompleted secondary education

0.8

Total:

428

100

519

100

492

100

* Average annual data

2.3.5.4 The employees of the Company and its subsidiaries in 2020–2022 according to personnel

groups*:

Employees

2022

2021

2020

Amount

Managers

4.9

4.1

4.3

Specialists

17.9

17.3

17.7

Workers

349

77.2

427

78.6

418

Total:

452

100

543

100

536

100

* Average annual data

2.3.6 Investment policy

2.3.6.1 Subsidiary companies’ names, head office addresses, type of activities, the authorised

capital, share of the authorized capital unpaid by the Company, net profit (loss), ratio of short-

term liabilities and current assets, ratio of total liabilities and total assets

SNAIGE – UKRAINE

ALMECHA

Registration date, head-office address

Registration date: November,

2002. Address: Gruševskio str.

28-2a/43, Kiev, Ukraine

Registration date: November,

2006. Address: Pramonės str. 6,

Alytus, Lithuania

Type of activities

Sales and marketing services

Production of other equipment

and machinery

Share of the authorized capital available to

Snaigė AB, %

100

Authorized capital (EUR)

4,223

398,978

Share of the authorized capital unpaid by the

Company

Fully paid

2022 profit (loss) (EUR thousand)

2.3.6.2 The most significant investment projects implemented in the last financial / economic year:

types of investments, investment volumes, sources of investment financing, geographic

distribution of investments

The total amount, spent for implementation of investment programs in 2022, was EUR 2,037 thousand.

Within the year 2022, EUR 397 thousand was spent on the development of new products. Constructive and

technological documentation has been created for new projects.

The following projects were implemented during the year:

1. Energy class "E" refrigerator CC31-CC29;

2. Laboratory refrigerators LD40;

3. FR RETRO refrigerators left-hand opening;

4. CD70 glass door refrigerators;

5. Professional freezer CF70;

6. Manufacturing of glass doors for commercial CD-type refrigerators.

Consolidated annual report for 2022

For the preparation of the production of new products were spent EUR 1,597 thousand: multi-purpose equipment and

devices were purchased and mastered in production. The largest part of the investment funds was for the purchase of

production equipment for the CF70 industrial freezer, the LD40 laboratory refrigerator and the SGL and SGM

monoblocks. A metal cutting laser "Prima Power" was purchased and installed with a set of necessary equipment and

a safety system for the precise cutting of metal cladding. The Panel Bender, an automatic metal bending centre for the

bending of large-sized and precise-dimensioned parts, is purchased and installed. The Krauss Maffei foam

polyurethane filling equipment complex was purchased and installed with a set of equipment and a safety system for

filling industrial refrigerator cabinets with polyurethane foam insulation. A production bar for glass doors for commercial

refrigerators was designed and started to be installed.

It was allocated EUR 2 thousand in 2022 for the development of technologies, mastering of specifically important and

effective new technological projects, improvement of work places.

EUR 41 thousand was spent on technical support of the production and renewal of the equipment worn-out during the

year. This amount was used to purchase and replace the worn-out mould D024083 for moulding plastic parts.

2.3.7 Environment protection

2.3.7.1 Environmental policy

The Company's environmental vision is organic products, clean technology and clean environment.

The Company's products, production technology and services cannot do the illegal exposure of atmospheric air,

water, employees, consumers and environment.

Environment must not be contaminated by waste products of production more than is inevitable and allowed.

The Company's management trying to implement a vision and having a clear understanding of environmental

importance assumes the following responsibilities:

• Comply with the effective legislative and other requirements applicable to the Company and related to the

aspects of environmental protection;

• Include the consideration of environmental issues into the Company’s operating strategy;

• Protect the environment focusing on the reduction of pollution, consumption of electric power in production

and exploitation of refrigerators and coolers;

• Continually improve environmental performance;

• Increase our staff approach to environmental protection;

• Explain the importance of environmental protection policies to the employees and allow access to the policies

to all stakeholders;

• Analyse the possibilities of impact on suppliers, clients and contractors, suggest them to implement

environmental protection principles in their activities, protect the environment with regard to their aspects and

life cycle of their operations.

2.3.7.2 Environmental report

Snaigė AB is one of the most advanced manufacturing companies of Lithuania in the field of environment protection.

Our vision is organic products, clean technology and clean environment.

The activities of the Company are regulated by environment protection management system, which complies with

international ISO 14001 standard requirements. The system is working since 2001. The Company is currently recertified

under international standard ISO 14001, version of 2015.

In 2022, the Company’s pollutant emission was in line with the permitted levels; therefore, it received no comments or

claims from controlling institutions or business partners.

Since 1 January 2015 Snaigė AB, in accordance with Regulation (EC) No 1005/2009 of the European Parliament and

of the Council of 16 September 2009 “On substances that deplete the ozone layer” has committed itself to the

requirements and does not buy and does not use single or in a mixture with pure and impure (that is recycled and

reclaimed), hydro chlorofluorocarbons (HCFC).

When developing a new product, the Company gives a priority for the manufacturing processes, which save raw

materials and resources, for safe transportation, waste elimination and quality of products. In manufacturing the

Company tries to use materials that later can be recycled.

The Company complies with Directive 2009/125/EC of 21 October 2009 of the European Parliament and European

Commission, which regulates design of the products.

Snaigė refrigerators are manufactured from ecological materials, which do not contain any harmful elements. For

example, every plastic part of a refrigerator is marked (according to ISO 1043:1:1997), so that it can be reused one

Consolidated annual report for 2022

more time, recycled according to Directive 2002/96/EC describing electrical and electronic equipment waste

requirements.

When designing and producing Snaigė refrigerators, the Company uses various means to reduce the harmful effect on

the environment:

− No materials are used causing greenhouse effect or deteriorating ozone;

− No materials are used which are harmful for human health;

− Analysis of materials usage is performed.

All the products manufactured by the Company meet the requirements of the following directives and regulation of the

European Community:

• Regarding non-usage of harmful materials:

▪ RoHS2 Directive 2011/65/EU of the European Parliament and of the Council on the restriction of the use

of certain hazardous substances in electrical and electronic equipment.

▪ REACH Regulation (EC) No 1907/2006 of the European Parliament and of the Council on the non-use

of high-risk substances (151) which refrigerators may release into the environment;

▪ PAH Decision AFPS-GS-2019:01 PAK of the Government of Germany, which means that SNAIGĖ

products meet the polycyclic aromatic hydrocarbons concentration limit for 18 carcinogenic materials;

• Regarding contact with food (these regulations mean that the materials applied during the manufacture of

Snaigė refrigerators are allowed to contact with food):

▪ Regulation (EC) No 1935/2004 of the European Parliament and of the Council on materials and articles

intended to come into contact with food (general);

▪ Commission Regulation (EU) No 10/2011 on plastic materials and articles intended to come into contact

with food (for plastics).

The purchasers of a refrigerator are also provided with information regarding ecology. They are advised how to install,

use, and maintain their refrigerator so that its service life would be extended as much as possible and the effect on the

environment would be reduced as much as possible. In addition to this, purchasers are advised how to return the

refrigerator after the expiry of its service life.

The company has a system for utilizing old refrigerators. Since mid-2008, the company has been handling waste from

large household appliances - refrigerators and freezers.

Snaigė AB consistently complies with the requirements of the Kyoto Protocol regarding global warming and climate

change. The Company saves electricity, water and heat: the use of these resources has been reduced threefold in ten

years.

2.3.8 Risk factors related to the business of the Company

Macroeconomic Risk. As the Lithuanian economy overcomes the evolving challenges, private consumption and

domestic demand are expected to remain relatively stable, mainly driven by a reduction in policy uncertainties and

growth in real disposable income. As export markets are sufficiently diversified, country-specific problems would not

have a material impact on the company’s business. However, following the protracted COVID-19 pandemic the

outbreak of hostilities in Ukraine, there is a reasonable risk of a worldwide recession, which could have a negative

impact on the Company's operations and results. The impact of the effects of the COVID-19 pandemic and the ongoing

military conflict in Ukraine on macroeconomic processes is constantly evolving, but it affects both the risk of inflation

and changes in supply chains, as well as changes in other macroeconomic factors. The risk of higher inflation is related

to global commodity and energy prices and potential shortages, which are difficult to predict due to ongoing

uncertainties.

The risk of exchange rate fluctuations for the Company is minimal due to small trading volumes in foreign currencies

and balanced buying and selling flows in different currencies (mainly EUR and USD).

Credit Market Risk. Uncertainty about the global pandemic, the geopolitical situation and the availability of resources

prevails in both the Lithuanian and global credit markets, but is expected to intensify and improve access to credit for

individual countries and central banks to at least partially offset business losses and liquidity. Although the Company's

internal financial resources are limited due to the ongoing restructuring processes, it can be assumed that the Company

will be able to secure short-term and long-term credit facilities to finance its operations in the future.

The Company’s Financial Accounting Accuracy Risk. On 27 April 2023 the Company’s auditor expressed a

qualified audit opinion on the Company’s separate and consolidated financial statements.

International Trade Restrictions Risk. The Company exports a portion of its production to third countries (outside the

European Union). There is a risk that changes in foreign trade policies of third countries could aggravate export

conditions to those countries. Any such change would negatively impact export opportunities for the Company and its

financial situation. Due to the geopolitical tensions caused by the military conflict in Ukraine, there are possible

sanctions and restrictions for the company and its individual trading partners due to political risks.

Consolidated annual report for 2022

Market Risk. The Company is engaged in the manufacturing of a variety of commercial and household refrigerators

and freezers and their sale. Investors assume the risk that the Company may suffer losses aggravating financial

situation of the Company in the event of negative changes in product markets and markets of raw materials needed in

production processes.

Policy Risk. The Company is engaged in manufacturing activities that generate chemical substances harmful to the

environment. Environmental matters both at Lithuanian and European Union levels are policy-regulated. There is a risk

that in the event of changes in existing environmental requirements and restrictions the Company might need additional

investments to ensure compliance of production processes with new requirements. However, such investments should

not negatively affect the financial situation of the Company. Due the military conflict in Ukraine, there is a risk that the

government of Lithuania or other countries to which the products are exported may adopt various operating restrictions

that may adversely affect the company's operations and results. The wider impact of the war in Ukraine is disclosed in

Note 32 to the 2022 consolidated audited financial statements.

Business Continuity Risk. Business continuity presumptions are disclosed under Note 2.2 of the consolidated audited

financial statements of 2022. The wider impact of the Restructuring process is disclosed in Note 33 to the 2022

consolidated audited financial statements.

Operational Risk. This is the risk that includes both direct and indirect losses resulting from improper or inoperative

internal processes, systems or technologies, actions by staff and agents, and external factors. Constituent part of the

operational risk is legal risk, i.e. risk of losses potentially occurring as a result of the Company’s present or past

obligations under various contracts and agreements, legal actions or laws, non-performance or improper performance.

Technical and Technological Factors. This includes physical and moral depreciation of a variety of technical means.

Risk factors of this type could affect operations of the Company both directly and indirectly. Technological factors can

affect the Company directly through physical and moral depreciation of technical base.

More detailed disclosures of the Company’s risk management and interest rate, exchange rate, credit and liquidity risks

can be found under Note 29 of the consolidated financial statements.

2.3.8.1 The main indications about internal control and risk management systems related to the

preparation of consolidated financial statements

The Audit Committee supervises preparation of the consolidated financial statements, systems of internal control and

financial risk management and how the Company follows legal acts that regulate preparation of consolidated financial

statements.

The Chief Accountant of the Company is responsible for the preparation supervision and the final revision of the

consolidated financial statements. Moreover, he constantly reviews International Financial Reporting Standards (IFRS),

as adopted by European Union in order to implement IFRS changes in time, analyses the Company’s and the Group’s

significant deals, ensures collecting information from the Group companies and timely and fair preparation of this

information for the financial statements. The Company’s Chief Accountant periodically informs the Board about the

financial statements preparation process.

2.3.9 Related party transactions

The information about related party transactions is disclosed under Note 31 of the consolidated financial statements.

2.4 DISCLOSURE FORM CONCERNING THE COMPLIANCE WITH THE GOVERNANCE CODE FOR

THE COMPANIES LISTED ON THE REGULATED MARKET

The public limited liability company AB Snaigė (hereinafter referred to as the “Company”), acting in compliance with

Article 22 (3) of the Law of the Republic of Lithuania on Securities and paragraph 24.5 of the Listing Rules of AB

Nasdaq Vilnius, hereby discloses how it complies with the Corporate Governance Code for the Companies listed on

Nasdaq Vilnius as well as its specific provisions or recommendations. In case of non-compliance with this Code or

some of its provisions or recommendations, the specific provisions or recommendations that are not complied with and

for what reasons, as well as other explanatory information is provided in this form.

2.4.1 Summary of the Corporate Governance Report:

According to the Articles of association of AB Snaigė, the governing bodies of the Company are the General

Shareholder’s Meeting, the Board and CEO. The Company does not have a Supervisory Council, but supervision

functions set by the Law on Companies of the Republic of Lithuania are performed by the Board, which is comprised

of 5 members and is elected for 4 years term.

During of 2019 year General meeting of shareholders Shareholders elected The Board from three representatives of

the largest shareholder and two independent members of the Board and appointed two independent members of the

Board to Audit Committee and authorized the Board in the future to appoint members to the Audit Committee. The

Company does not have Remuneration and a Nomination Committee as its functions, if necessary, will be performed

Consolidated annual report for 2022

by the Board by making decisions. The Board elects and recalls CEO of the Company, sets his/her remuneration and

other conditions of the employment agreement.

The remuneration policy of the Company was approved during the Extraordinary General Meeting of Shareholders held

in 15 October 2021.

More information about the corporate governance, shareholders’ rights, activities of the Board and the Audit Committee

as well as other key points related to the Company’s management are provided in the Consolidated Annual Report of

AB Snaigė, for the year ended 31 December 2022.

2.4.2 Structured table for disclosure:

PRINCIPLES/ RECOMMENDATIONS

YES/NO /NOT

APPLICABLE

COMMENTARY

Principle 1: General meeting of shareholders, equitable treatment of shareholders, and shareholders’ rights

The corporate governance framework should ensure the equitable treatment of all shareholders. The

corporate governance framework should protect the rights of shareholders.

1.1. All shareholders should be provided with access to

the information and/or documents established in the

legal acts on equal terms. All shareholders should be

furnished with equal opportunity to participate in the

decision-making process where significant corporate

matters are discussed.

YES

Information about convening shareholders

meetings is provided publicly in English

and Lithuanian languages through the

Nasdaq Vilnius Stock Exchange Central

Regulation Base

https://www.nasdaqbaltic.com and on

Company’s site www.snaige.lt

1.2. It is recommended that the company’s capital

should consist only of the shares that grant the same

rights to voting, ownership, dividend and other rights to

all of their holders.

YES

1.3. It is recommended that investors should have

access to the information concerning the rights

attached to the shares of the new issue or those issued

earlier in advance, i.e. before they purchase shares.

YES

Company’s articles of association are

provided publicly on Company’s site.

There are all information concerning the

rights attached to earlier issued shares.

1.4. Exclusive transactions that are particularly

important to the company, such as transfer of all or

almost all assets of the company which in principle

would mean the transfer of the company, should be

subject to approval of the general meeting of

shareholders.

YES

The Company would follow the applicable

legal acts and the Company's Articles of

Association. Currently for concluding such

transactions. In accordance with currently

applicable laws and the Company's

Articles of Association, the Board makes

decisions on the investment, transfer and

lease of fixed assets with a book value

exceeding 1/20 of the Company's

authorized capital.

1.5. Procedures for convening and conducting a

general meeting of shareholders should provide

shareholders with equal opportunities to participate in

the general meeting of shareholders and should not

prejudice the rights and interests of shareholders. The

chosen venue, date and time of the general meeting

of shareholders should not prevent active participation

of shareholders at the general meeting. In the notice

of the general meeting of shareholders being

convened, the company should specify the last day

on which the proposed draft decisions should be

submitted at the latest.

YES

1.6. With a view to ensure the right of shareholders

living abroad to access the information, it is

recommended, where possible, that documents

prepared for the general meeting of shareholders in

advance should be announced publicly not only in

Lithuanian language but also in English and/or other

foreign languages in advance. It is recommended that

the minutes of the general meeting of shareholders

after the signing thereof and/or adopted decisions

should be made available publicly not only in

YES

Documents prepared for the general

meeting of shareholders and adopted

decisions are announced publicly in

Lithuanian and English languages.

Consolidated annual report for 2022

Lithuanian language but also in English and/or other

foreign languages. It is recommended that this

information should be placed on the website of the

company. Such documents may be published to the

extent that their public disclosure is not detrimental to

the company or the company’s commercial secrets

are not revealed.

1.7. Shareholders who are entitled to vote should be

furnished with the opportunity to vote at the general

meeting of shareholders both in person and in

absentia. Shareholders should not be prevented from

voting in writing in advance by completing the general

voting ballot.

YES

1.8. With a view to increasing the shareholders’

opportunities to participate effectively at general

meetings of shareholders, it is recommended that

companies should apply modern technologies on a

wider scale and thus provide shareholders with the

conditions to participate and vote in general meetings

of shareholders via electronic means of

communication. In such cases the security of

transmitted information must be ensured and it must

be possible to identify the participating and voting

person.

Shareholders may vote in advance in

writing by filling a general ballot paper.

The Company does not make it possible

to participate and vote at the Meeting by

means of electronic communications.

1.9. It is recommended that the notice on the draft

decisions of the general meeting of shareholders

being convened should specify new candidatures of

members of the collegial body, their proposed

remuneration and the proposed audit company if

these issues are included into the agenda of the

general meeting of shareholders. Where it is

proposed to elect a new member of the collegial body,

it is recommended that the information about his/her

educational background, work experience and other

managerial positions held (or proposed) should be

provided.

YES

1.10. Members of the company’s collegial

management body, heads of the administration

other competent persons related to the company who

can provide information related to the agenda of the

general meeting of shareholders should take part in

the general meeting of shareholders. Proposed

candidates to member of the collegial body should

also participate in the general meeting of

shareholders in case the election of new members is

included into the agenda of the general meeting of

shareholders.

YES

The Manager of Company attends the

general meeting of shareholders. The

opportunity to attend the general meeting

of shareholders are also given to

Members of the Board and candidates to

the Board.

Principle 2: Supervisory board

2.1. Functions and liability of the supervisory board

The supervisory board of the company should ensure representation of the interests of the company and its

shareholders, accountability of this body to the shareholders and objective monitoring of the company’s

operations and its management bodies as well as constantly provide recommendations to the management

bodies of the company. The supervisory board should ensure the integrity and transparency of the

company’s financial accounting and control system.

For the purposes of this Code, heads of the administration are the employees of the company who hold top level management

positions.

Consolidated annual report for 2022

2.1.1. Members of the supervisory board should act in

good faith, with care and responsibility for the benefit

and in the interests of the company and its

shareholders and represent their interests, having

regard to the interests of employees and public

welfare.

NOT

APPLICABLE

The Supervisory Board is not formed

2.1.2. Where decisions of the supervisory board may

have a different effect on the interests of the

company’s shareholders, the supervisory board

should treat all shareholders impartially and fairly. It

should ensure that shareholders are properly

informed about the company’s strategy, risk

management and control, and resolution of conflicts

of interest.

NOT

APPLICABLE

2.1.3. The supervisory board should be impartial in

passing decisions that are significant for the

company’s operations and strategy. Members of the

supervisory board should act and pass decisions

without an external influence from the persons who

elected them.

NOT

APPLICABLE

2.1.4. Members of the supervisory board should

clearly voice their objections in case they believe that

a decision of the supervisory board is against the

interests of the company. Independent

members of

the supervisory board should: a) maintain

independence of their analysis and decision-making;

b) not seek or accept any unjustified privileges that

might compromise their independence.

NOT

APPLICABLE

2.1.5. The supervisory board should oversee that the

company’s tax planning strategies are designed and

implemented in accordance with the legal acts in

order to avoid faulty practice that is not related to the

long-term interests of the company and its

shareholders, which may give rise to reputational,

legal or other risks.

NOT

APPLICABLE

2.1.6. Bendrovė turėtų užtikrinti, kad The company

should ensure that the supervisory board is provided

with sufficient resources (including financial ones) to

discharge their duties, including the right to obtain all

the necessary information or to seek independent

professional advice from external legal, accounting or

other experts on matters pertaining to the

competence of the supervisory board and its

committees.

NOT

APPLICABLE

2.2. Formation of the supervisory board

The procedure of the formation of the supervisory board should ensure proper resolution of conflicts of

interest and effective and fair corporate governance.

2.2.1. The members of the supervisory board elected

by the general meeting of shareholders should

collectively ensure the diversity of qualifications,

professional experience and competences and seek

for gender equality. With a view to maintain a proper

balance between the qualifications of the members of

the supervisory board, it should be ensured that

members of the supervisory board, as a whole,

should have diverse knowledge, opinions and

experience to duly perform their tasks.

NOT

APPLICABLE

For the purposes of this Code, the criteria of independence of members of the supervisory board are interpreted as the criteria of

unrelated parties defined in Article 31(7) and (8) of the Law on Companies of the Republic of Lithuania.

Consolidated annual report for 2022

2.2.2. Members of the supervisory board should be

appointed for a specific term, subject to individual re-

election for a new term in office in order to ensure

necessary development of professional experience.

NOT

APPLICABLE

2.2.3. Chair of the supervisory board should be a

person whose current or past positions constituted no

obstacle to carry out impartial activities. A former

manager or management board member of the

company should not be immediately appointed as

chair of the supervisory board either. Where the

company decides to depart from these

recommendations, it should provide information on

the measures taken to ensure impartiality of the

supervision.

NOT

APPLICABLE

2.2.4. Each member should devote sufficient time and

attention to perform his duties as a member of the

supervisory board. Each member of the supervisory

board should undertake to limit his other professional

obligations (particularly the managing positions in

other companies) so that they would not interfere with

the proper performance of the duties of a member of

the supervisory board. Should a member of the

supervisory board attend less than a half of the

meetings of the supervisory board throughout the

financial year of the company, the shareholders of the

company should be notified thereof.

NOT

APPLICABLE

2.2.5. When it is proposed to appoint a member of the

supervisory board, it should be announced which

members of the supervisory board are deemed to be

independent. The supervisory board may decide that,

despite the fact that a particular member meets all the

criteria of independence, he/she cannot be

considered independent due to special personal or

company-related circumstances.

NOT

APPLICABLE

2.2.6. The amount of remuneration to members of the

supervisory board for their activity and participation in

meetings of the supervisory board should be

approved by the general meeting of shareholders.

NOT

APPLICABLE

2.2.7. Every year the supervisory board should carry

out an assessment of its activities. It should include

evaluation of the structure of the supervisory board,

its work organization and ability to act as a group,

evaluation of the competence and work efficiency of

each member of the supervisory board, and

evaluation whether the supervisory board has

achieved its objectives. The supervisory board

should, at least once a year, make public respective

information about its internal structure and working

procedures.

NOT

APPLICABLE

Principle 3: Management Board

3.1. Functions and liability of the management board

The management board should ensure the implementation of the company’s strategy and good corporate

governance with due regard to the interests of its shareholders, employees and other interest groups.

3.1.1. The management board should ensure the

implementation of the company’s strategy approved

by the supervisory board if the latter has been formed

at the company. In such cases where the supervisory

board is not formed, the management board is also

responsible for the approval of the company’s

strategy.

YES

The Company’s Board performs

supervisory functions set by Law on

Companies of the Republic of Lithuania.

Consolidated annual report for 2022

3.1.2. As a collegial management body of the

company, the management board performs the

functions assigned to it by the Law and in the articles

of association of the company, and in such cases

where the supervisory board is not formed in the

company, it performs inter alia the supervisory

functions established in the Law. By performing the

functions assigned to it, the management board

should take into account the needs of the company’s

shareholders, employees and other interest groups by

respectively striving to achieve sustainable business

development.

YES

By performing the functions assigned to

it, the management board takes into

account the needs of the company’s

shareholders, employees and other

interest groups striving to achieve

sustainable business development.

3.1.3. The management board should ensure

compliance with the laws and the internal policy of the

company applicable to the company or a group of

companies to which this company belongs. It should

also establish the respective risk management and

control measures aimed at ensuring regular and direct

liability of managers.

YES

3.1.4 Moreover, the management board should

ensure that the measures included into the OECD

Good Practice Guidance

on Internal Controls, Ethics

and Compliance are applied at the company in order

to ensure adherence to the applicable laws, rules and

standards.

YES

3.1.5. When appointing the manager of the company,

the management board should take into account the

appropriate balance between the candidate’s

qualifications, experience and competence.

YES

3.2. Formation of the management board

3.2.1. The members of the management board

elected by the supervisory board or, if the supervisory

board is not formed, by the general meeting of

shareholders should collectively ensure the required

diversity of qualifications, professional experience and

competences and seek for gender equality. With a

view to maintain a proper balance in terms of the

current qualifications possessed by the members of

the management board, it should be ensured that the

members of the management board would have, as a

whole, diverse knowledge, opinions and experience to

duly perform their tasks.

YES

3.2.2. Names and surnames of the candidates to

become members of the management board,

information on their educational background,

qualifications, professional experience, current

positions, other important professional obligations and

potential conflicts of interest should be disclosed

without violating the requirements of the legal acts

regulating the handling of personal data at the

meeting of the supervisory board in which the

management board or individual members of the

management board are elected. In the event that the

supervisory board is not formed, the information

specified in this paragraph should be submitted to the

general meeting of shareholders. The management

board should, on yearly basis, collect data provided in

this paragraph on its members and disclose it in the

company’s annual report.

YES

Candidates to the Board members

introduce to shareholders specifying

working positions in other

companies, relations with Company

if such has. Company’s annual

report discloses all known

information.

Link to the OECD Good Practice Guidance on Internal Controls, Ethics and Compliance: https://www.oecd.org/daf/anti-

bribery/44884389.pdf

Consolidated annual report for 2022

3.2.3. All new members of the management board

should be familiarized with their duties and the

structure and operations of the company.

YES

3.2.4. Members of the management board should be

appointed for a specific term, subject to individual re-

election for a new term in office in order to ensure

necessary development of professional experience

and sufficiently frequent reconfirmation of their status.

YES

3.2.5. Chair of the management board should be a

person whose current or past positions constitute no

obstacle to carry out impartial activity. Where the

supervisory board is not formed, the former manager

of the company should not be immediately appointed

as chair of the management board. When a company

decides to depart from these recommendations, it

should furnish information on the measures it has

taken to ensure the impartiality of supervision.

YES

The Chairman of the Company’s

Board is not and never was the

manager of the Company. The

Board is elected by shareholders.

3.2.6. Each member should devote sufficient time and

attention to perform his duties as a member of the

management board. Should a member of the

management board attend less than a half of the

meetings of the management board throughout the

financial year of the company, the supervisory board

of the company or, if the supervisory board is not

formed at the company, the general meeting of

shareholders should be notified thereof.

YES

3.2.7. In the event that the management board is

elected in the cases established by the Law where the

supervisory board is not formed at the company, and

some of its members will be independent

, it should

be announced which members of the management

board are deemed as independent. The management

board may decide that, despite the fact that a

particular member meets all the criteria of

independence established by the Law, he/she cannot

be considered independent due to special personal or

company-related circumstances.

YES

Candidates to the Board members

introduce themselves to the

shareholders, indicating their

positions in other companies,

relations with the Company, if any.

3.2.8. The general meeting of shareholders of the

company should approve the amount of remuneration

to the members of the management board for their

activity and participation in the meetings of the

management board.

YES

At present, the remuneration for

members of the Board is not paid. If

it were considered to pay a fee to

the Board members, shareholders

would be asked to confirm the

amount of remuneration. This is also

provided for in the Articles of

Association of the Company.

3.2.9. The members of the management board should

act in good faith, with care and responsibility for the

benefit and the interests of the company and its

shareholders with due regard to other stakeholders.

When adopting decisions, they should not act in their

personal interest; they should be subject to no-

compete agreements and they should not use the

business information or opportunities related to the

company’s operations in violation of the company’s

interests.

YES

According information available to

the Company, the members of the

Board are guided by the interests of

the Company and act for the benefit

of Shareholders in performing their

duties.

For the purposes of this Code, the criteria of independence of the members of the board are interpreted as the criteria of

unrelated persons defined in Article 33(7) of the Law on Companies of the Republic of Lithuania.

Consolidated annual report for 2022

3.2.10. Every year the management board should

carry out an assessment of its activities. It should

include evaluation of the structure of the management

board, its work organization and ability to act as a

group, evaluation of the competence and work

efficiency of each member of the management board,

and evaluation whether the management board has

achieved its objectives. The management board

should, at least once a year, make public respective

information about its internal structure and working

procedures in observance of the legal acts regulating

the processing of personal data.

There is no such practice yet.

Principle 4: Rules of procedure of the supervisory board and the management board of the company

The rules of procedure of the supervisory board, if it is formed at the company, and of the management board

should ensure efficient operation and decision-making of these bodies and promote active cooperation

between the company’s management bodies.

4.1. The management board and the supervisory

board, if the latter is formed at the company, should

act in close cooperation in order to attain benefit for

the company and its shareholders. Good corporate

governance requires an open discussion between the

management board and the supervisory board. The

management board should regularly and, where

necessary, immediately inform the supervisory board

about any matters significant for the company that are

related to planning, business development, risk

management and control, and compliance with the

obligations at the company. The management board

should inform he supervisory board about any

derogations in its business development from the

previously formulated plans and objectives by

specifying the reasons for this.

NOT APPLICABLE

The Supervisory board is not formed

at the Company.

4.2. It is recommended that meetings of the

company’s collegial bodies should be held at the

respective intervals, according to the pre-approved

schedule. Each company is free to decide how often

meetings of the collegial bodies should be convened

but it is recommended that these meetings should be

convened at such intervals that uninterruptable

resolution of essential corporate governance issues

would be ensured. Meetings of the company’s

collegial bodies should be convened at least once per

quarter.

YES

Board meetings are called at

appropriate intervals to ensure

continuity of essential corporate

governance issues. Extraordinary

meetings are convened to deal with

urgent matters.

4.3. Members of a collegial body should be notified of

the meeting being convened in advance so that they

would have sufficient time for proper preparation for

the issues to be considered at the meeting and a

fruitful discussion could be held and appropriate

decisions could be adopted. Along with the notice of

the meeting being convened all materials relevant to

the issues on the agenda of the meeting should be

submitted to the members of the collegial body. The

agenda of the meeting should not be changed or

supplemented during the meeting, unless all

members of the collegial body present at the meeting

agree with such change or supplement to the agenda,

or certain issues that are important to the company

require immediate resolution.

YES

Agenda and all materials required

according to the agenda are sent to

the Members of the Board by

electronic mail in advance; normally

the agenda is not changed during

meetings unless it is a necessity to

solve additional important issues.

Consolidated annual report for 2022

4.4. In order to coordinate the activities of the

company’s collegial bodies and ensure effective

decision-making process, the chairs of the company’s

collegial supervision and management bodies should

mutually agree on the dates and agendas of the

meetings and close cooperate in resolving other

matters related to corporate governance. Meetings of

the company’s supervisory board should be open to

members of the management board, particularly in

such cases where issues concerning the removal of

the management board members, their responsibility

or remuneration are discussed.

NOT

APPLICABLE

The Supervisory board is not formed

at the Company.

Principle 5: Nomination, remuneration and audit committees

5.1. Purpose and formation of committee

The committees formed at the company should increase the work efficiency of the supervisory board or,

where the supervisory board is not formed, of the management board which performs the supervisory

functions by ensuring that decisions are based on due consideration and help organise its work in such a

way that the decisions it takes would be free of material conflicts of interest.

Committees should exercise independent judgment and integrity when performing their functions and

provide the collegial body with recommendations concerning the decisions of the collegial body. However,

the final decision should be adopted by the collegial body.

5.1.1. Taking due account of the company-related

circumstances and the chosen corporate governance

structure, the supervisory board of the company or, in

cases where the supervisory board is not formed, the

management board which performs the supervisory

functions, establishes committees. It is recommended

that the collegial body should form the nomination,

remuneration and audit committees

YES/NO

An audit committee has been

formed. The nomination and

remuneration committees are not

formed. If necessary functions of

these committees will perform by the

collegial body himself by making

decisions.

5.1.2. Companies may decide to set up less than

three committees. In such case companies should

explain in detail why they have chosen the alternative

approach, and how the chosen approach corresponds

with the objectives set for the three different

committees.

5.1.3. In the cases established by the legal acts the

functions assigned to the committees formed at

companies may be performed by the collegial body

itself. In such case the provisions of this Code

pertaining to the committees (particularly those

related to their role, operation and transparency)

should apply, where relevant, to the collegial body as

a whole.

YES

Provisions of this Code relating to

committees are applicable to the

collegial body as far as possible in

specific circumstances

5.1.4. Committees established by the collegial body

should normally be composed of at least three

members. Subject to the requirements of the legal

acts, committees could be comprised only of two

members as well. Members of each committee should

be selected on the basis of their competences by

giving priority to independent members of the collegial

body. The chair of the management board should not

serve as the chair of committees.

The Audit Committee is consisted of

two members. Following the

resignation of a member of the

Board as a member of the

Company's Board and of the Audit

Committee, the Board plans to elect

a new Board member to perform

these duties.

The legal acts may provide for the obligation to form a respective committee. For example, the Law on the Audit of Financial

Statements of the Republic of Lithuania provides that public-interest entities (including but not limited to public limited liability

companies whose securities are traded on a regulated market of the Republic of Lithuania and/or of any other Member State) are

under the obligation to set up an audit committee (the legal acts provide for the exemptions where the functions of the audit

committee may be carried out by the collegial body performing the supervisory functions).

Consolidated annual report for 2022

5.1.5. The authority of each committee formed should

be determined by the collegial body itself. Committees

should perform their duties according to the authority

delegated to them and regularly inform the collegial

body about their activities and performance on a

regular basis. The authority of each committee

defining its role and specifying its rights and duties

should be made public at least once a year (as part of

the information disclosed by the company on its

governance structure and practice on an annual

basis). In compliance with the legal acts regulating the

processing of personal data, companies should also

include in their annual reports the statements of the

existing committees on their composition, the number

of meetings and attendance over the year as well as

the main directions of their activities and performance.

YES/NO

The collegial body is determined

authority the audit committee formed

on 2019 year. Till 2019 year the

shareholders meeting approved

audit committee regulations and

after first approving these

regulations was published.

5.1.6. With a view to ensure the independence and

impartiality of the committees, the members of the

collegial body who are not members of the

committees should normally have a right to participate

in the meetings of the committee only if invited by the

committee. A committee may invite or request that

certain employees of the company or experts would

participate in the meeting. Chair of each committee

should have the possibility to maintain direct

communication with the shareholders. Cases where

such practice is to be applied should be specified in

the rules regulating the activities of the committee.

YES

5.2. Nomination committee

5.2.1. The key functions of the nomination committee

should be the following:

1) to select candidates to fill vacancies in the

membership of supervisory and management bodies

and the administration and recommend the collegial

body to approve them. The nomination committee

should evaluate the balance of skills, knowledge and

experience in the management body, prepare a

description of the functions and capabilities required

to assume a particular position and assess the time

commitment expected;

2) assess, on a regular basis, the structure, size and

composition of the supervisory and management

bodies as well as the skills, knowledge and activity of

its members, and provide the collegial body with

recommendations on how the required changes

should be sought;

3) devote the attention necessary to ensure

succession planning.

The nomination committee is not formed.

5.2.2. When dealing with issues related to members

of the collegial body who have employment

relationships with the company and the heads of the

administration, the manager of the company should

be consulted by granting him/her the right to submit

proposals to the Nomination Committee.

The nomination committee is not formed.

5.3. Remuneration committee

Consolidated annual report for 2022

The main functions of the remuneration committee

should be as follows:

1) submit to the collegial body proposals on the

remuneration policy applied to members of the

supervisory and management bodies and the heads

of the administration for approval. Such policy should

include all forms of remuneration, including the fixed-

rate remuneration, performance-based remuneration,

financial incentive schemes, pension arrangements

and termination payments as well as conditions which

would allow the company to recover the amounts or

suspend the payments by specifying the

circumstances under which it would be expedient to

do so;

2) submit to the collegial body proposals regarding

individual remuneration for members of the collegial

bodies and the heads of the administration in order to

ensure that they would be consistent with the

company’s remuneration policy and the evaluation of

the performance of the persons concerned;

3) review, on a regular basis, the remuneration policy

and its implementation.

The remuneration committee is not

formed.

5.4. Audit committee

5.4.1. The key functions of the audit committee are

defined in the legal acts regulating the activities of the

audit committee

YES

5.4.2. All members of the committee should be

provided with detailed information on specific issues

of the company’s accounting system, finances and

operations. The heads of the company’s

administration should inform the audit committee

about the methods of accounting for significant and

unusual transactions where the accounting may be

subject to different approaches.

YES

5.4.3. The audit committee should decide whether the

participation of the chair of the management board,

the manager of the company, the chief finance officer

(or senior employees responsible for finance and

accounting), the internal and external auditors in its

meetings is required (and, if required, when). The

committee should be entitled, when needed, to meet

the relevant persons without members of the

management bodies present.

YES

5.4.4. The audit committee should be informed about

the internal auditor’s work program and should be

furnished with internal audit reports or periodic

summaries. The audit committee should also be

informed about the work program of external auditors

and should receive from the audit firm a report

describing all relationships between the independent

audit firm and the company and its group.

YES

Issues related to the activities of audit committees are regulated by Regulation No. 537/2014 of the European Parliament and

the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities, the Law on the Audit

of Financial Statements of the Republic of Lithuania, and the Rules Regulating the Activities of Audit Committees approved by

the Bank of Lithuania.

Consolidated annual report for 2022

5.4.5. The audit committee should examine whether

the company complies with the applicable provisions

regulating the possibility of lodging a complaint or

reporting anonymously his/her suspicions of potential

violations committed at the company and should also

ensure that there is a procedure in place for

proportionate and independent investigation of such

issues and appropriate follow-up actions.

This question will be solved in future.

5.4.6. The audit committee should submit to the

supervisory board or, where the supervisory board is

not formed, to the management board its activity

report at least once in every six months, at the time

that annual and half-yearly reports are approved.

YES

Principle 6: Prevention and disclosure of conflicts of interest

The corporate governance framework should encourage members of the company's supervisory and

management bodies to avoid conflicts of interest and ensure a transparent and effective mechanism for

disclosing conflicts of interest related to members of the company's supervisory and management bodies

The corporate governance framework should recognize the rights of shareholders as enshrined in law and

promote active cooperation between the company and its shareholders in creating the company's well-being,

jobs and financial stability. In the context of this principle, the term shareholders includes investors,

employees, creditors, suppliers, customers, the local community and other persons with an interest in a

particular company.

Any member of the company’s supervisory and

management body should avoid a situation where

his/her personal interests are or may be in conflict

with the company’s interests. In case such a situation

did occur, a member of the company’s supervisory or

management body should, within a reasonable period

of time, notify other members of the same body or the

body of the company which elected him/her or the

company’s shareholders of such situation of a conflict

of interest, indicate the nature of interests and, where

possible, their value.

YES

Members of the Company's management

body are trying to follow the

recommendations listed in this article.

Principle 7: Remuneration policy of the company

The remuneration policy and the procedure for review and disclosure of such policy established at

the company should prevent potential conflicts of interest and abuse in determining remuneration

of members of the collegial bodies and heads of the administration, in addition it should ensure

the publicity and transparency of the company’s remuneration policy and its long-term strategy.

7.1. The company should approve and post the

remuneration policy on the website of the company;

such policy should be reviewed on a regular basis

and be consistent with the company’s long-term

strategy.

YES

The Company's remuneration policy

was approved during the

Extraordinary General Meeting of

Shareholders on 15 October 2021.

7.2. The remuneration policy should include all forms

of remuneration, including the fixed-rate

remuneration, performance-based remuneration,

financial incentive schemes, pension arrangements

and termination payments as well as the conditions

specifying the cases where the company can recover

the disbursed amounts or suspend the payments.

YES

7.3. With a view to avoid potential conflicts of interest,

the remuneration policy should provide that members

of the collegial bodies which perform the supervisory

functions should not receive remuneration based on

the company’s performance.

YES

The remuneration for the work in the

Board is not paid to the members of

the Board of the Company, unless

the remuneration to be paid to the

independent members of the board

is determined by the shareholders

who elect it.

Consolidated annual report for 2022

7.4. The remuneration policy should provide sufficient

information on the policy regarding termination

payments. Termination payments should not exceed

a fixed amount or a fixed number of annual wages

and in general should not be higher than the non-

variable component of remuneration for two years or

the equivalent thereof. Termination payments should

not be paid if the contract is terminated due to

inadequate performance.

YES

7.5. In the event that the financial incentive scheme is

applied at the company, the remuneration policy

should contain sufficient information about the

retention of shares after the award thereof. Where

remuneration is based on the award of shares, shares

should not be vested at least for three years after the

award thereof. After vesting, members of the collegial

bodies and heads of the administration should retain

a certain number of shares until the end of their term

in office, subject to the need to compensate for any

costs related to the acquisition of shares.

YES/NO

The company does not have an

incentive system for financial

instruments.

7.6. The company should publish information about

the implementation of the remuneration policy on its

website, with a key focus on the remuneration policy

in respect of the collegial bodies and managers in the

next and, where relevant, subsequent financial years.

It should also contain a review of how the

remuneration policy was implemented during the

previous financial year. The information of such

nature should not include any details having a

commercial value. Particular attention should be paid

on the major changes in the company’s remuneration

policy, compared to the previous financial year.

YES

7.7. It is recommended that the remuneration policy or

any major change of the policy should be included on

the agenda of the general meeting of shareholders.

The schemes under which members and employees

of a collegial body receive remuneration in shares or

share options should be approved by the general

meeting of shareholders.

YES

Principle 8: Role of stakeholders in corporate governance

The corporate governance framework should recognize the rights of stakeholders entrenched in

the laws or mutual agreements and encourage active cooperation between companies and

stakeholders in creating the company value, jobs and financial sustainability. In the context of this

principle the concept “stakeholders” includes investors, employees, creditors, suppliers, clients,

local community and other persons having certain interests in the company concerned.

8.1. The corporate governance framework should

ensure that the rights and lawful interests of

stakeholders are protected.

YES

8.2. The corporate governance framework should

create conditions for stakeholders to participate in

corporate governance in the manner prescribed by

law. Examples of participation by stakeholders in

corporate governance include the participation of

employees or their representatives in the adoption of

decisions that are important for the company,

consultations with employees or their representatives

on corporate governance and other important matters,

participation of employees in the company’s

authorized capital, involvement of creditors in

corporate governance in the cases of the company’s

insolvency, etc.

YES

Consolidated annual report for 2022

8.3. Where stakeholders participate in the corporate

governance process, they should have access to

relevant information.

YES

8.4. Stakeholders should be provided with the

possibility of reporting confidentially any illegal or

unethical practices to the collegial body performing

the supervisory function.

YES

The supervisory function performs the

Board of the Company. The Company

transfers information concerns to the

Board in accordance with confidentiality

requirements.

Principle 9: Disclosure of information

The corporate governance framework should ensure the timely and accurate disclosure of all

material corporate issues, including the financial situation, operations and governance of the

company.

9.1. In accordance with the company’s procedure on

confidential information and commercial secrets and

the legal acts regulating the processing of personal

data, the information publicly disclosed by the

company should include but not be limited to the

following:

YES

The Company follows this

requirement and discloses available

information, in accordance with the

company’s procedure on confidential

information and commercial secrets

and the legal acts regulating the

processing of personal data.

9.1.1. operating and financial results of the company;

YES

9.1.2. objectives and non-financial information of the

company;

YES

9.1.3. persons holding a stake in the company or

controlling it directly and/or indirectly and/or together

with related persons as well as the structure of the

group of companies and their relationships by

specifying the final beneficiary;

YES

9.1.4. members of the company’s supervisory and

management bodies who are deemed independent,

the manager of the company, the shares or votes held

by them at the company, participation in corporate

governance of other companies, their competence

and remuneration;

YES

9.1.5. reports of the existing committees on their

composition, number of meetings and attendance of

members during the last year as well as the main

directions and results of their activities.

YES

9.1.6. potential key risk factors, the company’s risk

management and supervision policy.

YES

9.1.7. the company’s transactions with related parties.

YES

9.1.8. main issues related to employees and other

stakeholders (for instance, human resource policy,

participation of employees in corporate governance,

award of the company’s shares or share options as

incentives, relationships with creditors, suppliers, local

community, etc.).

YES

9.1.9. structure and strategy of corporate governance.

YES

Consolidated annual report for 2022

9.1.10. initiatives and measures of social

responsibility policy and anti-corruption fight,

significant current or planned investment projects.

This list is deemed minimum and companies are

encouraged not to restrict themselves to the

disclosure of information included into this list. This

principle of the Code does not exempt companies

from their obligation to disclose information as

provided for in the applicable legal acts.

YES

9.2. When disclosing the information specified in

paragraph 9.1.1 of recommendation 9.1, it is

recommended that the company which is a parent

company in respect of other companies should

disclose information about the consolidated results of

the whole group of companies.

YES

9.3. When disclosing the information specified in

paragraph 9.1.4 of recommendation 9.1, it is

recommended that the information on the professional

experience and qualifications of members of the

company’s supervisory and management bodies and

the manager of the company as well as potential

conflicts of interest which could affect their decisions

should be provided. It is further recommended that

the remuneration or other income of members of the

company’s supervisory and management bodies and

the manager of the company should be disclosed, as

provided for in greater detail in Principle 7.

YES

9.4. Information should be disclosed in such manner

that no shareholders or investors are discriminated in

terms of the method of receipt and scope of

information. Information should be disclosed to all

parties concerned at the same time.

YES

The information which is disclosed

to all parties concerned at the same

time.

Principle 10 : Selection of the company’s audit firm

The company’s audit firm selection mechanism should ensure the independence of the report and opinion of

the audit firm

10.1. With a view to obtain an objective opinion on the

company’s financial condition and financial results,

the company’s annual financial statements and the

financial information provided in its annual report

should be audited by an independent audit firm.

YES

10.2. It is recommended that the audit firm would be

proposed to the general meeting of shareholders by

the supervisory board or, if the supervisory board is

not formed at the company, by the management

board of the company..

YES

10.3. In the event that the audit firm has received

remuneration from the company for the non-audit

services provided, the company should disclose this

publicly. This information should also be available to

the supervisory board or, if the supervisory board is

not formed at the company, by the management

board of the company when considering which audit

firm should be proposed to the general meeting of

shareholders.

YES

Consolidated annual report for 2022

3. OTHER INFORMATION ABOUT SNAIGĖ AB

3.1 Membership in associated organizations

Snaigė AB is a member of the EEPA association.

The EEPA is an association established by manufacturers and importers of electrical equipment and batteries and

accumulators. The main objective of the association is the implementation of waste management obligations by the

association members stipulated in both the EU and Lithuanian legislation. As of 2006, the association organizes waste

from electrical and electronic equipment management and as of the end of 2009 – management of waste from batteries

and accumulators.

3.2 Patents, licenses

The Company’s activities are independent of patents or licences.

3.3 Recent and the most important events of the Company

The most important post balance sheet events are presented in the consolidated financial statements.

3.3.1 Recent publicly disclosed information

14-04-2023

Information for the Ordinary General Meeting of Shareholders of SNAIGE AB

Additional information for the Ordinary General Meeting of Shareholders of AB "Snaigė" (hereinafter referred to as the

"Meeting") to be convened on 28 April 2023 at 10 a.m.

The agenda of the meeting is supplemented by item No. 7: Approval of an amendment to the Company's restructuring

plan.

12-04-2023

AB SNAIGĖ decided to appeal against the decision of Kaunas Regional Court not to approve the restructuring

plan

According to Mindaugas Sologubas, general director of AB SNAIGĖ, the company does not agree with the court's

decision not to approve the restructuring plan, since such a decision does not protect the interests of either the company

or the company’s non-mortgage creditors. It can only be favorable to one side – the mortgage creditor UAB Easy debt

service, who, without risking anything, regardless of whether the company continues to operate or is closed.

"I cannot accept the fact that a viable company that pays taxes and salaries and counts insist years anniversary may

be doomed to closure in the interests of the mortgage creditor. “- said M. Sologubas. – “-350 SNAIGĖ employees would

remain without work. Those companies that supply SNAIGE with goods and services would also could be closed or

will experience difficulties.”

The state would also suffer losses: instead of the 2 million EUR received annually from SNAIGĖ as a tax, it will have

to pay social benefits to people who will become unemployed.

In 2022, the total salary fund of SNAIGĖ amounted to EUR 5,615,385.09, and the total amount of contributions charged

to SODRA in 2022 amounted to EUR 1,393,718.33. The company has paid €723,656.88 in personal income tax alone

in the year from 1 March 2022 to 28 March 2023.

According to M. Sologubas, the restructuring plan is an opportunity for the company to resolve its temporary financial

difficulties, to optimize and restructure the company's activities in such a way that the company can meet its obligations

to all creditors as soon as possible. "- In its order, the court did not express doubts about the validity of the restructuring

plan, therefore, UAB Easy debt service’s assertions that the company's restructuring plan does not correspond to

reality," - said M. Sologubas. –“In this way, the mortgage creditor selfishly forms the opinion that AB SNAIGE will not

be able to implement the restructuring plan.”

AB SNAIGĖ has every opportunity to operate and develop further. Even in difficult conditions, the company designed

and introduced the market a new product: a double refrigerating unit-monobloc TWIN SGL017P2AAX1XSN - an

efficient refrigerating unit for refrigerating storage facilities; 585 l capacity professional freezer CF70M; 350 l refrigerator-

showcase CD35DM black color modification; 585 l capacity professional refrigerator with glass door CD70MF. Also,

the AB SNAIGĖ supplemented its line of medical refrigerators with several important products: Company created a

prototype of the MD40 refrigerator with metal doors, and prepared the MD35 refrigerator cabinet for further

development. Not only the existing customers of the company were interested in these products, but also number of

new ones.

AB SNAIGĖ is supported not only by the company's non-mortgage creditors, but also by customers. One of them is

world-class manufacturer Whirlpool, who recently signed a factoring agreement with the company.

Consolidated annual report for 2022

07-04-2023

Convocation of the ordinary General Meeting of Shareholders of Snaigė AB

On 28 April 2023 the ordinary General Meeting of Shareholders of Snaigė AB, the address of head office Pramonės

str. 6, Alytus, the company code 249664610 (hereinafter, the “Company”) is convened (hereinafter, the “Meeting”).

The place of the meeting –at AB “Snaige” office, at the address Kareiviu str. 6, Vilnius, Lithuania.

The Meeting commences – at 10 a.m. (registration starts at 9.45 a.m.).

The Meeting’s accounting day – 21 April 2023 (the persons who are shareholders of the Company at the end of

accounting day of the General Meeting of Shareholders or authorized persons by them, or the persons with whom

shareholders concluded the agreements on the disposal of voting right, shall have the right to attend and vote at the

General Meeting of Shareholders).

The meeting is initiating and convening by the decision of the Managing Director of the Company.

Agenda of the Meeting:

The agenda question 1: Consolidated annual report of “Snaigė” AB on the company’s activity for 2022 with information

about the Company strategy and its implementation;

The agenda question 2: Auditor's report on the company's 2022 financial statements;

The agenda question 3: Approval of the set of financial statements of the company for 2022;

The agenda question 4: Approval of distribution of profit (loss) of Snaigė AB for 2022;

The agenda question 5: Election of the Board for a new term;

The agenda question 6: Election of the Audit Committee for the new term.

04-04-2023

The Kaunas Regional Court did not approve the restructuring plan of AB SNAIGĖ

On 4 April. the Kaunas Regional Court did not approve the restructuring plan of AB SNAIGĖ. Although it was approved

by a majority of both the company's shareholders and the majority of the company's non-mortgage creditors, the

mortgage creditor UAB Easy Debt Service voted against this plan.

In the opinion of Mindaugas Sologubas, manging director of AB SNAIGĖ, the restructuring plan is an opportunity for

the company to solve temporary financial difficulties, optimize and restructure the company's activities so that the

company can meet its obligations to all creditors as soon as possible. "The restructuring plan was in the interests of all

creditors." - says M. Sologubas. "The failure to approve this plan means that in reality, non-mortgage creditors can

hardly count on the recovery of their debt, the beneficiary will only be the mortgage creditor."

According to Mindaugas Sologubas, "AB SNAIGĖ is now a functioning, viable company that pays taxes to state and

salaries to its employees on time, makes current payments to its creditors, and exports its products to almost 30

European countries. "If the restructuring plan will not be approved, the legendary Lithuanian company, which is counting

for sixty years this year, will cease to exist," said M. Sologubas. “-350 employees would be left without work, whose

total salary fund in 2022 amounted to EUR 5,615,385.09, and the total amount of contributions charged to SODRA'i in

2022 amounted to EUR 1,393,718.33. Not only the company's creditors, but also the company's suppliers (about 100

companies) and the company's customers would be affected.

AB SNAIGĖ, according to Mindaugas Sologubas the Director General, will consider the possibility of appealing against

this court decision in accordance with the procedure provided for by legal acts.

20-03-2023

AB SNAIGĖ submitted a request for approval of the restructuring plan

AB SNAIGĖ insolvency administrator Aurimas Valaitis applied to Kaunas Regional Court to approve the company’s

restructuring plan. The basis of this application is the meeting of creditors of the company held on 16.03.2023 at which

this issue was discussed. The decision to approve the restructuring plan in the group of non-mortgage creditors was

taken by a majority vote (79%), and was not taken in the group of mortgage creditors.

According to Mindaugas Sologubas, general director of AB "SNAIGĖ", the company respects the opinion of all creditors,

is grateful to those who approved the draft restructuring plan and hopes that Kaunas regional court will approve this

plan.

In the opinion of Mindaugas Sologubas, the company's restructuring plan is in the interests of both the company and

its creditors and gives optimism that the company will be able to resolve temporary financial problems. "The main

strategic goal during the restructuring period is to optimize and restructure the company's activities so that the company

can meet its obligations to creditors as soon as possible," said M. Sologubas.

Currently, the company has more orders than it can produce due to lack of working capital, develops new refrigeration

appliances, pays with employees and the state on time. Since the start of the restructuring, the company has paid over

EUR 0.5 million to Sodra and more than EUR 0.6 million in taxes to the state.

According to M. Sologubas, AB SNAIGĖ is not only a significant company in the region, employing almost 400 people,

but also the only manufacturer of refrigerators in the Baltic States More than a hundred different Lithuanian companies

Consolidated annual report for 2022

supply AB SNAIGĖ with their products, therefore, in the opinion of M. Sologubas, approval of the restructuring plan will

preserve jobs for employees and income for related companies.

During the restructuring plan, the company will implement the measures envisaged, which will help to increase the

production and sales of professional and medical refrigeration appliances with a higher added value, as well as the

production and sales of more profitable household refrigeration appliances. According to M. Sologubas, the company

is already continuing its activities in the chosen direction. "Industrial products account for more than half of our turnover.

Our goal is to have a fundamentally changed product portfolio in 2025, where professional refrigeration equipment will

account for more than 70%. We're working on it at full capacity, we have a plan for how to do it, so I have reason to

believe we'll succeed."

28-03-2023

Consolidated Interim Report for Year 2022

According to unaudited consolidated data, in 2022 the company reached 21 million. EUR turnover, i.e. one and a half

times less than in 2021.

According to Mindaugas Sologubas, general director of AB "Snaigė", the decreased turnover of the company is also a

consequence of war and the cost raise of resources, transport and energy.

“In the first half of last year, the war not only closed Ukraine, one of our largest markets, but also significantly frightened

many our customers in Central and Western Europe." – says M. Sologubas. - "The uncertainty of the situation has

prompted many of them to postpone their orders, to put their development plans on hold. In almost all of our markets,

sales slowed down or even stopped in the first half of the year. Increase of energy prices in the second half of the year

also affected significantly to the drop in sales."

In order to ensure business continuity, the company prepared restructuring plan for the company's activities and began

the restructuring process, which became effective in September. According to the Court, the prospects of the company's

activities provided for in the draft restructuring plan lead to the conclusion that the company has real opportunities to

restore solvency, which is why it was allowed to restructure.

According to Mindaugas Sologubas, general director of AB "Snaigė “, currently the company is continuing to operate,

producing refrigerators, developing its new category of industrial refrigeration products and has no intention of stopping.

"We are trying to get out of this unfavourable for the company situation on our own," says M. Sologubas. "The biggest

internal obstacle to our activity is the lack of working capital. We have many more orders than we can and actually

produce. We cannot borrow yet, we pay for raw materials in advance, which also negatively affects the company's

result".

The company suffered of 2.7 million. EUR unaudited consolidated EBITDA loss. Mr Sologubas points out that almost

half of this loss was due to the re-calculation of reserves, provisions and accumulations. This recalculation had to be

done by the company following IFRS, due to the restructuring process and the assessment of the consequences of the

war in Ukraine. Therefore, according to M. Sologubas, the real results of the company's everyday activities are better.

In 2022, AB "Snaigė" exported 93% of its production.

Sekenora Holdings Limited, a Cypriot investment company, is the main shareholder of SNAIGĖ. The SNAIGĖ group of

companies includes two subsidiaries TOB SNAIGĖ UKRAINA and UAB ALMECHA.

AB "Snaigė" is one of the largest employers of Alytus city and district, employing over 360 employees. The company

supplies orders and works to many Lithuanian companies, annually pays the State of Lithuania about EUR 3 million in

taxes.

27-02-2023

Resolutions of Snaige AB the Extraordinary Meeting of Shareholders

The Extraordinary Meeting of shareholders of Snaige AB (further - the Company) was held on 27 February 2023.

The following decisions on the agenda questions were adopted at the Extraordinary Meeting of the shareholders:

The agenda question: 1. Approval of the Company’s restructuring plan.

The decision: Approve the Company’s restructuring plan.

06-02-2023

Convocation of the Extraordinary General Meeting of Shareholders of Snaigė AB

On 27 February 2023 the Extraordinary General Meeting of Shareholders of Snaigė AB, the address of head office

Pramonės str. 6, Alytus, the company code 249664610 (hereinafter, the “Company”) is convened (hereinafter, the

“Meeting”).

The Company will present the restructuring plan to the shareholders, which changed insignificantly when one of the

mortgage creditors of AB SNAIGĖ transferred the claim rights to a new creditor, and the latter wanted to adjust the

restructuring plan.

According to the Company's restructuring plan, AB SNAIGĖ should resolve the temporary difficulties that arose due to

the crisis of raw materials in, the increase in the price of energy resources and the war in Ukraine.

Consolidated annual report for 2022

Before the change of the mortgage creditor, the Company's other creditors approved the Company's restructuring plan

by a majority of votes during the first creditors' meeting.

According to Mindaugas Sologubas, the Company's general director, the shareholders' meeting should approve the

new restructuring plan because the changes made are not essential.

Currently, AB SNAIGĖ continues its activities by manufacturing refrigeration appliances for domestic and professional

purposes, paying employees and taxes to the state on time, and developing new projects.

The place of the meeting –at AB “Snaige” office, at the address Kareiviu str. 6, Vilnius, Lithuania.

The Meeting commences – at 10 a.m. (registration starts at 9.45 a.m.).

The Meeting’s accounting day – 20 February 2023 (the persons who are shareholders of the Company at the end of

accounting day of the General Meeting of Shareholders or authorized persons by them, or the persons with whom

shareholders concluded the agreements on the disposal of voting right, shall have the right to attend and vote at the

General Meeting of Shareholders).

The meeting is initiating and convening by the decision of the Managing Director of the Company.

Agenda and draft decisions of the Meeting:

The agenda question 1. Regarding the approval of the restructuring plan of the Company.

Draft of the decision: To approve the restructuring plan of the Company.

The Company shall not provide the possibility to participate and vote in the Meeting through electronic communication

channels.

27-01-2023

The deadline for submitting AB SNAIGĖ's restructuring plan has been extended (additional information

provided)

In 2023 January, 20, The Kaunas District Court granted the request of AB Snaigė's insolvency administrator Aurimas

Valaitis to extend the deadline for submitting the Company's restructuring plan to the court until 2023 March 20

According to the Company's general director, Mindaugas Sologubas, this decision was made because one of the

Company's mortgage creditors started transferring claim rights to a new creditor. Since the new creditor needed more

time to enter the restructuring process due to the ongoing formalities, it was decided to postpone the consideration of

the draft restructuring plan.

(Additional information: AB SNAIGĖ's creditor, AO UniCredit Bank, transferred ownership of claim rights to a new

creditor, UAB Easy Debt Service)

The Company's other creditors approved the Company's restructuring plan by a majority of votes during the voting.

In M. Sologubas's opinion, the Company's restructuring plan meets the interests of the Company and its creditors. It

gives optimism that the Company will be able to resolve temporary financial problems.

"The main strategic goal of the Company during the restructuring period is to optimize and reorganize the company's

activities in such a way that the company can fulfil its obligations to creditors as soon as possible," said M. Sologubas.

During the restructuring plan, the Company will implement the planned measures that will help increase the production

volume and sales of industrial and medical refrigerating devices with higher added value, as well as the production and

sales of more profitable exclusive domestic refrigerating devices.

23-01-2023

The deadline for submitting AB SNAIGĖ‘s restructuring plan has been extended