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PST Group AB Consolidated Management Report and
Company’s and Consolidated Financial Statements
for a year ended 31 December 2024
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CONTENTS
1. Business overview ...................................................................................................................................................................................................... 6
1.1. Group’s structure .................................................................................................................................................................................................. 6
1.2. PST Group activities ............................................................................................................................................................................................. 7
1.3. Activities of structural divisions ............................................................................................................................................................................. 8
1.4. Activities of subsidiaries ....................................................................................................................................................................................... 8
1.5. Group values ........................................................................................................................................................................................................ 9
1.6. Risks .................................................................................................................................................................................................................... 9
1.7. Environment protection ....................................................................................................................................................................................... 11
1.8. Bribery and corruption ........................................................................................................................................................................................ 11
1.9. Employees ......................................................................................................................................................................................................... 11
2. Performance overview .............................................................................................................................................................................................. 14
2.1. Performance highlights ....................................................................................................................................................................................... 14
2.2. Alternative performance measures ..................................................................................................................................................................... 15
2.3. Information on revenue structure ........................................................................................................................................................................ 17
2.4. Key events ......................................................................................................................................................................................................... 18
2.5. Information on research and development activities ........................................................................................................................................... 19
2.6. Information on action plans and forecasts........................................................................................................................................................... 19
2.7. Information on Shares ........................................................................................................................................................................................ 19
3. Governance report .................................................................................................................................................................................................... 22
3.1. Governance ........................................................................................................................................................................................................ 22
3.2. Authorised capital structure and shareholders .................................................................................................................................................... 22
3.3. Dividends ........................................................................................................................................................................................................... 23
3.4. General Meeting of Shareholders ....................................................................................................................................................................... 24
3.5. Board ................................................................................................................................................................................................................. 24
3.6. Administration .................................................................................................................................................................................................... 26
3.7. Audit Committee ................................................................................................................................................................................................. 27
3.8. Information on significant related party transactions ........................................................................................................................................... 27
3.9. Corporate Governance Reporting Form .............................................................................................................................................................. 27
4. Remuneration report ................................................................................................................................................................................................. 42
4.1. Remuneration of the Board Members ................................................................................................................................................................. 42
4.2. Remuneration of the Company’s Employees ...................................................................................................................................................... 43
5. Sustainability report .................................................................................................................................................................................................. 46
5.1. ESRS 2 General disclosures .............................................................................................................................................................................. 46
5.2. Environmental area ............................................................................................................................................................................................ 68
5.3. Social area ......................................................................................................................................................................................................... 89
5.4. Governance area .............................................................................................................................................................................................. 100
5.5. Indices .............................................................................................................................................................................................................. 104
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6. Company’s Financial Statements ............................................................................................................................................................................ 117
Statement of comprehensive income ........................................................................................................................................................................ 117
Statement of Financial Position ................................................................................................................................................................................ 118
Statement of financial position (continued) ............................................................................................................................................................... 119
Statement of changes in equity ................................................................................................................................................................................. 120
Statement of Cash Flows.......................................................................................................................................................................................... 121
6.1. Notes to the Financial Statements .................................................................................................................................................................... 122
7. Consolidated Financial Statements ......................................................................................................................................................................... 158
Consolidated Statement of Comprehensive Income ................................................................................................................................................. 158
Consolidated Statement of Financial Position ........................................................................................................................................................... 159
Consolidated Statement of Financial Position (continued) ........................................................................................................................................ 160
Consolidated Statement of Changes in Equity .......................................................................................................................................................... 161
Consolidated Statement of Cash Flows .................................................................................................................................................................... 162
7.1. Notes to the Financial Statements .................................................................................................................................................................... 163
Confirmation of responsible persons ............................................................................................................................................................................. 205
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CONSOLIDATED MANAGEMENT REPORT
Reporting period covered by the Management Report
The Company’s and Consolidated Annual Report for 2024 covers the period between 1 January 2024 and 31 December
2024.
References to and additional explanations of information reported in the Management Report
In this Report, PST Group AB can be also referred to as the Company, and the Company together with its subsidiaries
collectively as the Group.
Key information about the Company (issuer)
Issuer’s name
PST Group AB
Issued capital
EUR 4,741,500
Registered address
P. Puzino st. 1, LT-35173 Panevėžys, Lithuania
Phone
+370 45 505 503
Legal-organisational form
Public limited liability company
Date and place of registration
30 October 1993, Panevėžys City Council
Registration No
AB 9376
Code of the Register of Legal
Entities
147732969
Company’s VAT code
LT477329610
Company’s LEI code
529900O0VPCGEWIDCX35
Manager of the Register of Legal
Entities
State Enterprise Centre of Registers
Email address
pst@pst.lt
Website
www.pst.lt
Company’s Auditor
Grant Thornton Baltic UAB
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BUSINESS
OVERVIEW
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1. Business overview
PST Group AB is one of the largest and longest-standing construction company groups in Lithuania, successfully delivering
ambitious infrastructure, industrial, commercial and residential projects.
PST Group unites top professionals across various fields, offering a comprehensive range of construction services - from
design and planning to final project handover. This holistic approach ensures the integration of advanced technologies,
efficient process management, and the highest quality standards at every stage.
With over 70 years of experience, the Company has established itself as a dominant force in the construction market, known
for its reliability, superior workmanship, and ability to execute even the most complex projects.
Today, PST is not just relying on its legacy—it is stepping into a new era. With a dynamic and ambitious team, the Company
is strengthening its position both in Lithuania and on the international stage.
1.1. Group’s structure
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1.2. PST Group activities
General contracting
General contracting is a comprehensive construction management service, where a single company takes full responsibility
for every stage of a project – from design and material procurement to construction and final project delivery. This approach
provides clarity, minimizes risks, and ensures projects are completed on time, within budget, and to the highest quality
standards.
At PST Group AB, we go beyond the role of a general contractor – we actively manage and oversee projects, ensuring
smooth coordination and efficient resource allocation. We are committed to timely delivery of contractual obligations, and
with decades of engineering experience, we offer tailored, end-to-end solutions, from initial consultations to final handover.
Clients trust the Company for our expertise in delivering large-scale and technologically complex projects. Our clients,
subcontractors, and suppliers recognize us as demanding yet reliable partner.
General construction works
The success of a construction project depends not only on a great idea but also on its execution. Our team ensures that all
general construction work is carried out to the highest standards of quality, reliability, and compliance.
With years of experience and a broad range of construction services, we handle everything from minor renovations and
refurbishments to large-scale construction projects. We work with various types of buildings, including residential,
commercial, industrial, and infrastructure developments.
Recognized as one of the leading construction companies in Lithuania, PST team adapts to the unique needs of each client,
offering efficient, innovative, and sustainable solutions at every stage of the construction process.
Architectural & engineering design
The “PST Projektai” engineering design office, part of the PST Group, provides comprehensive architectural and
engineering design services for public, industrial, residential, and infrastructure projects. With extensive expertise and deep
technical knowledge, our specialists successfully execute even the most complex projects, ensuring high quality and
innovative solutions.
Our approach is built on social responsibility and sustainability – we prioritize not only technical efficiency but also
environmental impact, long-term sustainability, and seamless urban integration. By utilizing BIM (Building Information
Modelling) technology, we optimize design processes, reduce errors, and ensure efficient construction management.
We focus on creating long-term value through sustainable and functional architecture. With years of experience in structural
design, we deliver optimized, efficient, and client-focused solutions that meet the highest industry standards. Our work
spans major public and industrial projects, where we apply advanced design technologies and international construction
standards to ensure a smooth transition from concept to completion.
Renovation & restoration
Our team specializes in renovation and restoration projects of varying complexity, revitalizing both historic and modern
buildings. We focus not only on improving structural integrity but also on preserving authenticity and architectural value.
We renovate residential, commercial, and public buildings, enhancing energy efficiency and extending their lifespan. In
restoring cultural heritage sites, we apply advanced technologies while adhering to the strictest preservation standards.
We manage complex projects, including facade restoration, modernization of engineering systems, roof and window
replacements, interior upgrades, and structural improvements.
With experience and a responsible approach, we bring the past to life while ensuring a sustainable future.
Real estate development
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We are committed to delivering high-quality, efficient, and long-term value in real estate development. Our expertise spans
residential and commercial property projects, as well as strategic long-term investments in the real estate market.
By working closely with PST Group companies and external partners, we optimize project management and ensure the
highest technological and architectural standards. Our extensive experience, deep understanding of client needs, and ability
to stay ahead of market trends allow us to develop modern, comfortable, and sustainable properties that not only meet
today’s demands but also retain their value for the future.
1.3. Activities of structural divisions
Structural division
Description of activities
Gerbusta
With many years of experience, knowledge and qualified employees, the branch of PST Group AB, Gerbusta, provides high
quality services: installation of outdoor utility networks, piled foundation, earth works and landscaping.
Pastatų Apdaila
The branch of PST Group AB, Pastatų Apdaila, performs various indoor and facade finishing works, renovation of residential
apartment buildings. Areas of activity: indoor finishing works, floor installation, facade finishing works, aluminium structures,
glass structures.
PST Projektai
The Designing Department PST Projektai provides designing services for various types of buildings and engineering
structures.
Construction
Laboratory
The accredited Construction Laboratory of PST Group AB meets the requirements of LST EN ISO/IEC 17025:2018. Since
1999, it has been accredited by the Lithuanian National Accreditation Bureau in accordance with LST EN ISO/IEC 17025 to
perform mortar, concrete and soil property tests and sampling, determine heat losses using the thermal imaging camera and
perform air tightness tests in buildings. Accreditation of the laboratory is accepted by the European co-operation for
Accreditation (EA).
1.4. Activities of subsidiaries
Company
Registered
address
Company
code
Shareholdi
ng (%)
Description of activities
Stadus UAB
Pramonės st. 5,
Panevėžys
148284718
100
Designing, production, construction and outfit of prefabricated timber
panel houses. About 80% of production is successfully exported to
Norway, Sweden, France, Switzerland, Iceland and other countries.
Vekada UAB
Tinklų st.7,
Panevėžys
147815824
100
Electrical installation. In addition to usual electrical engineering activity,
work related to low currents is also performed: installation of video
surveillance systems, security and fire alarms, control of engineering
systems. Working in the field of renewable energy sources is continued.
UAB „Alinita“
Tinklų st. 7,
Panevėžys
141619046
100
Installation of heating, ventilation and air-conditioning systems, water
supply, waste water and fire-fighting systems, designing, commissioning
and start-up of indoor utility systems.
Hustal UAB
Tinklų st. 7,
Panevėžys
148284860
100
Metal constructions sale, installation, design. The Company also supplies
steel structures for other branches of industry where steel items are
required. Activity and sale of the company are focused on the
Scandinavian market.
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1.5. Group values
Teamwork, accountability, and integrity are the cornerstones of our operations, shaping both our internal culture and the
trust we earn externally. By bringing together experts from diverse fields, we foster effective communication, continuous
development, and a strong mentorship culture. Taking responsibility for our actions and fulfilling our commitments helps us
uphold our reputation as a trusted company, while transparency and objectivity create a strong organizational culture where
there is no room for unethical behaviour.
These values are the foundation of our success, enabling us not only to execute complex projects but also to build long-
term, reliable relationships with our clients and partners.
1.6. Risks
In its activities, PST Group AB and PST Group companies is exposed to variety of risks, such as:
Aliuminio fasadai
UAB
Pramonės st. 5,
Panevėžys
305412441
100
Manufacture of aluminium profile systems, aluminium windows and doors.
„Kingsbud“
Sp.z.o.o.
ul. A. Patli 12,
16-400 Suwałki,
Polska
200380717
100
Wholesale of building materials. Kingsbud Sp.z o.o. has a branch
established in Lithuanian, which specializes in wholesale of stone and
glazed tiles for indoor and outdoor finishing.
„PS Trests“ SIA
Rīgas rajons,
Mārupes
pagasts, Skulte,
Skultes iela 28
40003495365
100
Construction activities. The company was established for searching of
new markets and carrying out construction activities in Latvia.
UAB „Šeškinės
projektai“
Ukmergės st.
219, Vilnius
302561768
100
Real estate development and lease.
UAB „Ateities
projektai“
Ukmergės st.
219, Vilnius
300560621
100
Real estate development and lease.
UAB „PST
Investicijos“
Ukmergės st.
219, Vilnius
124665689
68
Real estate development and lease.
UAB „Tauro
apartamentai“
Ukmergės st.
219, Vilnius
304937621
100
Real estate development and lease.
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• Geopolitical risks
• Macroeconomic factors
• Cyclical nature of economy
• Legal regulation
• Competition
• Inconsistency of orders
• Shortage of qualified labour
• Fluctuating material prices
• Other
Risk management is a part of strategic management and integral to the day-to-day operations of the Group. In managing
risks, the main objective of the Group is to identify higher and significant risks and manage them in the optimal way. The
Group has exposure to the following financial risks: credit, liquidity, market, business and operational.
Based on the credit risk policy established by the Group, standard payments and terms are only offered after credit standing
of each new client has been assessed. The potential credit risk for the clients of the Group and the Company is managed
through continuous monitoring of outstanding balances. The aim to ensure that the services are provided to reliable clients
and do not exceed the permissible credit risk limit is continuously maintained. The clients failing to meet the established
limit may only make purchases with the Group after paying prepayments.
The Group manages liquidity risk to ensure, as far as possible, sufficient liquidity, which allows fulfilling its obligations under
both normal and complex conditions without incurring unacceptable losses and without facing the risk to lose reputation of
the Group. The Company and the Group strives to maintain sufficient amount of cash and cash equivalents or secure of
appropriate credit instruments so as to fulfil their obligations set in the plans.
Market risk is the risk that changes in market prices, for example, changes in exchange rates and interest rates will affect
the result of the Group or the value of available financial instruments. The purpose of the market risk management is to
manage open positions of risk in order to optimize returns.
Business risk is related to the Group’s entry into new markets, segments, management of available inventories and
investments, and execution of construction contracts. One of the peculiarities related to construction activities is that the
fulfilment of concluded construction contracts is a long-term process, which makes the sector inert to changes in the
economic environment. For this reason, both positive and negative changes reach the economic environment in the
construction sector with considerable delay. In order to manage business risk, the Company and the Group seek to diversify
their sources of revenue. To this end, orders are being sought, and contracts are being concluded in both private and public
sectors, and markets are being searched not only in Lithuania but in other countries as well. The companies of the Group
operate in different sectors, such as construction, real estate development, production and engineering network installation.
The construction sector is not limited to the construction of single-purpose buildings. The Company implements construction
projects for industrial, engineering, environmental and residential buildings. Before starting new projects, the Company and
the Group companies make a thorough analysis of the project specifics and only after are confident that the environment is
sufficiently stable and a competent team is collected, final decisions are made.
The accounts of the Company are kept and financial statements are prepared in accordance with International Financial
Reporting Standards adopted for application in the EU The annual financial statements are audited by the independent
auditors selected by the General Meeting of Shareholders. This procedure ensures relevance and transparency of the data
provided in the financial statements.
Operational risk constitutes the risk of probability to incur losses due to people, systems, inadequate internal processes or
their failure, effects of external events, including legal risks. For the purposes of operational risk management, the Group
implements appropriate measures to ensure functioning of the internal control system and appropriate co-operation with
relevant third parties. The main elements of internal control applied in the Group are control of operations and accounting,
limits of decision-making powers and their control, separation of business decision-making and control functions, etc. The
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aim is to minimize the risk of legal compliance and ensure that the activities carried out comply with the applicable legislation.
To this end, the advice of professional lawyers and their participation are used in the processes of drafting internal
instruments and contracts.
The Company’s Board has overall responsibility for the establishment and oversight of the Company’s risk management
framework. The Group’s risk management policies are established to identify and analyse the risks faced by the Group, 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 activities. The Group aims to develop a
disciplined and constructive control environment in which all employees understand their roles and obligations.
Information on the types of financial risks and risk management is provided in the Note 6.1.4 to the Separate Financial
Statements, and Note 7.1.4 to the Consolidated Financial Statements. Legal uncertainties are provided in the Note 6.1.28
to the Separate Financial Statements, and Note 7.1.27 to the Consolidated Financial Statements.
1.7. Environment protection
Quality, sustainability, environment protection, occupational health and safety play a very important role in activities of PST
Group AB. Quality Management (ISO 9001), Environmental Management (ISO 14001) and Occupational Health and Safety
Management (ISO 45001) Systems introduced and available at the Company allow taking proper care of these significant
factors. Assessment of occupational risk is carried out, analyses are performed and measures for risk reduction or
elimination are taken on each site. For the purposes of environment and resource protection and sustainability, ensuring
pollution prevention, in the beginning of each project the environmental plan including specific measures for control of
significant aspects of environment protection and activities performed is prepared.
The companies of the Group also have Quality, Environmental and Occupational Health and Safety Management Systems
in accordance with the requirements of LST EN ISO 9001:2015, LST EN ISO 14001:2015 and LST ISO 45001:2018
introduced and successfully functioning.
In 2023, the Lithuanian National Accreditation Bureau accredited the Construction Laboratory of the Company according to
LST EN ISO/IEC 17025:2018 thus granting it the right to perform tests of building materials for the period of 5 years.
1.8. Bribery and corruption
PST Group AB takes a clear position against any kind of bribery and corruption. We aim to ensure transparency and fairness
in all business transactions, and prevent business suppliers from offering, giving or accepting bribes or undue rewards.
Employees, suppliers and representatives of the Company are obliged to disclose information about any situation that may
lead to a conflict of interest that may prejudice the Company’s interests in favour of his/her or those close to him/her.
Situations, where employees' personal, family or financial interests could clash with the interests of the Company, must be
avoided.
PST Group AB strictly complies with all applicable laws prohibiting the bribery of foreign officials.
1.9. Employees
Professional, competent and responsible employees are the biggest asset of the Company. Therefore, much attention is
paid to motivation of employees: environment favourable for generation and implementation of new ideas is being created
and sharing of information is being promoted. In modern environment, competence of employees is one of the key factors
describing competitiveness of the Company. Taking this factor into account, the Company encourages employees in all
organizational levels to learn and improve their skills.
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As of 31 December 2024, the number of employees in the Group was 629, in the Company – 402. As of 31 December
2023, the number of employees in the Group was 762, in the Company – 491.
The majority of employees in both the Group and the Company are male. Male employees make up 85% of all employees
in the Group and 83% in the Company. This is greatly influenced by the specifics of the activity performed, i.e. female
employees are less likely to choose technological work performed in construction, as well as specialities of the construction-
technical engineering profile directly related to these works and work in outdoor conditions.
Education level of the Group employees as of the end of the period
PST Group
employees
Payroll number
Higher university
level education
Higher non-
university level
education
Junior college
education
Secondary
education
Incomplete
secondary
education
Managers
16
15
0
1
0
0
Specialists
254
184
39
15
16
0
Workers
359
15
8
66
240
30
Total:
629
214
47
82
256
30
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PERFORMANCE
OVERVIEW
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2. Performance overview
2.1. Performance highlights
The turnover of PST Group AB amounted to EUR 71,875 million during 2024, and EUR 80,751 million during 2023. In 2024,
the Company incurred the net loss of EUR 4,923 million. The Company’s net loss in 2023 totalled EUR 2.279 million.
In 2024, the consolidated revenue of the Group companies of PST Group AB amounted to EUR 100,678 million, whereas
in 2023, the consolidated revenue totalled EUR 119,828 million. During the reporting period, the Group incurred the loss of
EUR 6,154 million, whereas in 2023, the Group’s net profit totalled EUR 3,322 million.
The scope of activities of PST Group AB depends on the availability of contracts and projects, which led to a drop in sales
in 2024. The profitability of the projects implemented in 2024 was affected by significant increases in the labour, material
and service expenses, while the Company had limited possibilities to adjust its contracts with its customers. In addition, an
assessment of the situation and significant adjustments have been made in accordance with IFRS:
• Due to the deteriorating situation of subsidiaries, adjustments were made to financial assets and receivables.
• Due to loss-making projects, anticipated negative project results were recognized.
The Group’s consolidated sales decreased, and a consolidated loss was incurred for several main reasons:
• the result of PST Group AB;
• decrease in profitability of subsidiaries operating primarily in Scandinavian markets, where the sector experienced
a slowdown.
• The significant deterioration in the performance of subsidiaries UAB "Alinita" and Aliuminio fasadai UAB, along with
fundamental restructuring of their operations.
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2.2. Alternative performance measures
In addition to the key indicators defined and applied in accordance with International Financial Reporting Standards (IFRS),
the financial statements of PST Group AB provide the key financial indicators derived from or based on the prepared
financial statements. These are known as Alternative Performance Measures (APM).
These Alternative Performance Measures, in the Company’s opinion, present significant additional information for investors
and other users of financial statements and other regulated information. The Alternative Performance Measures should be
treated as additional information prepared in accordance with IFRS.
Performance measures of the Group of PST Group AB and the Company in 2022-2024:
Group
Name
Company
2022
2023
2024
2022
2023
2024
115,840
119,828
100,678
Revenue
79,222
80,751
71,875
106,310
107,588
96,225
Cost of sales
77,066
76,909
71,460
9,530
12,240
4,453
Gross profit
2,156
3,842
415
8.23
10.21
4.42
Gross profit margin (per cents) (API)
2.72
4.76
0.58
-411
646
-4,653
Operating profit (loss)
-4,166
-3,629
-5,725
-0.35
0.54
-4.62
Operating result from turnover (per cents)
-5.26
-4.49
-7.97
922
1,844
-3,603
EBITDA (API)
-3,380
-2,959
-5,218
0.80
1.54
-3.58
EBITDA margin (per cents) (API)
-4.27
-3.66
-7.26
525
3,322
-6,154
Net profit (API)
-1,720
-2,279
-4,923
0.45
2.77
-6.11
Nets profit (loss) margin (per cents)
-2.17
-2.82
-6.85
0.032
0.203
-0.376
Earnings per share (Euros) (EPS) (API)
-0.105
-0.139
-0.301
1.75
10.89
-22.60
Return on equity (per cents) (ROE) (API)
-7.89
-11.22
-29.49
0.60
3.81
-7.75
Return on assets or asset profitability (ROA) (API)
-3.40
-4.54
-11.71
0.99
6.16
-13.25
Return on investments (ROI) (API)
-7.67
-10.01
-29.49
1.23
1.26
0.99
Current liquidity ratio (API)
1.02
1.14
0.88
0.95
0.98
0.70
Critical liquidity ratio (API)
0.85
0.96
0.67
0.35
0.35
0.33
Equity ratio (API)
0.41
0.40
0.39
0.64
0.65
0.67
Debt ratio (API)
0.59
0.60
0.61
1.83
1.85
2.01
Debt to equity ratio (API)
1.46
1.49
1.56
1.88
1.85
1.48
Book value per share (API)
1.31
1.17
0.87
0.28
0.26
0.33
Price-to-book ratio (P/B ratio) (API)
0.39
0.41
0.57
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16.13
2.34
-1.32
Price-to-earnings ratio (P/E) (API)
-4.92
-3.41
-1.64
Taking into account the guidelines of the European Securities and Markets Authority (ESMA) on Alternative Performance
Measures, PST Group AB provides an overview of the APMs used, their definition and formation.
Measure
Formula and components
Meaning and interpretation
Operating profit
Operating profit = Gross profit –
Operating costs
An indicator of the company’s performance that shows the company’s
ability to make a profit, regardless of the financing method of (e. g.
from equity or bank loans).
Operating profit margin, %
Operating profit/Sales revenue
Shows efficiency of the company’s operations and is used for
comparison of companies in the same business sector.
EBITDA
EBITDA (over relevant period) =
operating profit + depreciation
(amortization)
The essence of the EBITDA is to determine the least depending on
circumstances (least fluctuating), the most objective profit (loss) of the
company.
EBITDA profitability,%
EBITDA/Sales revenue
Shows efficiency of the company’s operations and is used for
comparison of companies in the same business sector.
Earnings per share (EPS)
Net profit for the period/Number of shares
EPS is the measure of the company’s profitability. Shows amount of
the profit earned by the company over the period per one ordinary
share.
Return on equity (ROE), %
Net profit for the period/Average total
equity (equity attributable to equity
holders of the company)
Shows the percentage return the company earns from each monetary
unit invested by the shareholders. A higher value of the measure is
considered better.
Return on assets (ROA), %
Net profit for the period/Average total
assets
Shows the percentage return the company earns from the assets. A
higher value of the measure is equated with the more efficient use of
the assets.
Return on Investment (ROI), %
Net profit for the period/(assets-short
term debt)
Shows how much the company has earned using the share capital.
Current ratio
Ending current assets/Ending current
liabilities
Shows the ability of a company to meet its current liabilities by using
its current assets. When the value ranges between 1 and 2, liquidity
of the company is safe.
Acid test (Quick) ratio
(Current assets – Inventory) / Current
liabilities
Demonstrates the ability of a company to meet its short-term liabilities
promptly under conditions of pressure. When the value greater than 1
is good and liquidity of the company can be considered safe.
Equity to asset ratio
Equity/Assets
Shows the share of equity in the capital structure. The lower the value,
the higher is dependency of the company in its operation on borrowed
funds.
Debt ratio
Liabilities/Assets
Shows what part of the assets is financed from borrowed funds. The
lower the value, the more the debt is covered by assets.
Debt to equity ratio
Liabilities/ Equity
Shows how much short-term and long-term debt per euro is per euro
of equity.
Book value per share
Equity/Number of shares
Shows how much equity is per share.
Ukmergės str. 219, Vilnius +370 620 84120 pst@pst.lt www.pst.lt
17
Price to book ratio (P/BV)
Ending share price/Book value
Shows how much an investor pays for one euro of assets that he
would theoretically receive on liquidation.
Price to earnings ratio (P/E)
Ending market value per share / Earnings
per share (EPS)
Reflects the price paid by investors for one euro of the company's
earned profit.
2.3. Information on revenue structure
The main revenue of the Company by activity types is from construction activities. In 2024, the revenue of the Group from
construction activities totalled 76.4%, the revenue from real estate development and rent was 3%, the revenue from finished
products and other revenue amounted to 20.6%, whereas in 2023, the revenue of the Group from construction activities
totalled 74.3%, the revenue from real estate development and rent was 2.4%, the revenue from finished products and other
revenue amounted to 23.3%
Distribution of the Group’s revenue by type of activity:
In 2024, the main activities of the Company were carried out in Lithuania. The Company’s works performed in 2023
accounted 98% of its activities. The Group's revenue from the works performed inside the country made 85.1%, whereas
in 2023, 81.1% of the total revenue. The Group’s revenue generated during 2024 and 2023 in the Scandinavian countries
accounted for 12.4% and 17.1%, respectively, of total revenue.
Distribution of the Group’s operating income by country:
Ukmergės str. 219, Vilnius +370 620 84120 pst@pst.lt www.pst.lt
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2.4. Key events
2.4.1. Key events of the reporting period
The key events that occurred during 2024 and were published through the GlobeNewswire information system:
23 January 2024. Panevėžio Statybos Trestas AB, the former CEO of the Company, D. Gesevičius, and the insurers R&Q
Syndicate Management Limited and Marco International Insurance Company Limited signed the settlement agreements on
23 January 2024, on the basis of which all legal and arbitration disputes regarding the civil liability of the former CEO of the
Company, D. Gesevičius, (for the fine imposed by the decision No 2S-11(2017) of the Competition Council dated 20
December 2017) and payment of the insurance benefit related to it will be amicably ended. Referring to the concluded
settlement agreements, the insurers will pay the sum amounting to EUR 1,200,000 in favour of Panevėžio Statybos Trestas
AB, and Panevėžio Statybos Trestas AB will waive all its claims against the insurers and the former CEO, D. Gesevičius.
28 March 2024. Panevėžio Statybos Trestas AB informed that the Board Member Gvidas Drobužas had resigned as a
Board Member of the Company.
23 April 2024. Panevėžio Statybos Trestas AB signed the EUR 156 million (VAT inclusive) contract with Ignalina Nuclear
Power Plant (INPP) for construction of repository for radioactive waste and performance of relevant works. The works are
scheduled for the period of 4.5 years.
30 April 2024. The Ordinary General Meeting of Shareholders of Panevėžio Statybos Trestas AB took place. The Meeting
elected Gintautas Mažeika as the Board member of Panevėžio Statybos Trestas AB. The Ordinary General Meeting of
Shareholders did not come to the decision to pay dividends.
6 June 2024. The Company informed that Alinita UAB, a company belonging to Panevėžio Statybos Trestas AB Group,
engaged in installation and designing of indoor engineering systems, had been facing financial difficulties and planned to
start the restructuring process.
9 July 2024. Panevėžio Statybos Trestas AB, seeking to make better use of available resources and make operations more
efficient, the activities of the branches Klaipstata, Genranga and Konstrukcija will be transferred to the parent Company.
This decision will allow to focus even more on providing top quality services to our clients.
25 September 2024. The Extraordinary General Meeting of Shareholders of Panevėžio Statybos Trestas AB took place.
The meeting revoked the resolution on election of the new member to the Board of Panevėžio Statybos Trestas AB adopted
at the General Meeting of Shareholders on 30 April 2024 (the ground for revocation of the resolution – the data of the Board
Member have not been registered with the Register of Legal Entities by the term established by the law). The decision was
made to elect Gintautas Mažeika as the Board member of Panevėžio Statybos Trestas AB.
14 October 2024. The Panevėžys Regional Court has decided to open a restructuring case against Alinita UAB, a member
of the Panevėžio Statybos Trestas’ Group of companies. The decision, which entered into force on 11 October 2024, gives
the company the opportunity to restore its solvency and to continue its operations while addressing temporary financial
challenges.
8 November 2024. Panevėžio Statybos Trestas AB has signed a construction contract worth EUR 26.5 million (including
VAT) with Kormotech UAB, a Ukrainian animal feed production company, for the construction of a manufacturing plant with
warehousing and administrative facilities at Pažangos st. 4, Kėdainiai.
19 December 2024. Panevėžio Statybos Trestas AB informed that during the Extraordinary Meeting of Shareholders of
PST investicijos UAB on 9 December 2024 it was decided to liquidate PST investicijos UAB.
2.4.2. Key events after the reporting period (in 2025)
7 February 2025. Panevėžio Statybos Trestas AB signed almost a 14 million EUR (VAT included) contract with JPackaging,
a company of the asset management group TMV Capital, for the construction of a wooden pallet and pallet edging factory
in Šeduva Industrial Park, Radviliškis district.
Ukmergės str. 219, Vilnius +370 620 84120 pst@pst.lt www.pst.lt
19
18 March 18 2025, a special general meeting of shareholders of PST Group was held. During the meeting, UAB KPMG
Baltics was elected to audit the financial statements for 2025, 2026, and 2027 for PST Group AB and its group companies.
Additionally, a new company name, PST Group AB, was approved.
21 March, 2025, PST Group AB received a notification from UAB Prosperus Group, INVL Baltic Fund, represented by the
management company UAB "SB Asset Management," and Clairmont Holdings Ltd regarding the acquisition of voting rights
and joint action in exercising shareholder rights. The acting in concert persons are: INVL Baltic Fund, represented by the
management company UAB "SB Asset Management" (702,565 shares, 4.30%), UAB "Prosperus Group" (960,254 shares,
5.87%), and Clairmont Holdings Ltd (792,243 shares, 4.85%). The total voting rights represented by the shares are
2,455,062 shares, or 15.02%.
2.5. Information on research and development activities
The Company and companies of the Group keep a consistent focus on increasing operational management efficiency,
improving construction work quality and introducing modern technologies. We are looking for ways to improve efficiency,
innovative and resource-efficient process management, working conditions and service quality.
Acknowledging a significant construction footprint on nature and people, we focus on sustainability in our activities. We aim
to analyse the impact of our activities in the areas of environment, social responsibility and governance. We develop
sustainability goals and strategies. We provide customers, partners and investors with a clear picture of the impact of our
activities. We promote engagement and participation in sustainability initiatives.
We aim to reduce the energy consumption and waste generation in our operations through optimisation of our production
processes. We invest in more efficient working tools and technologies that enable to generate and use green energy.
To maintain a high-level expertise in the construction sector, the Company is working with partners to extend the use of
Building Information Modelling (BIM) principles in project management.
2.6. Information on action plans and forecasts
The economic situation in Lithuania and export markets, geopolitical risks, implementation of the large-scale infrastructure,
military and energy projects will have a significant impact on the Company’s and the Group’s operations.
PST Group AB specializes in complex and long-term projects. The profitability of some projects carried out in 2024 was
negatively affected by geopolitical risks and the resulting inflation. The company and its management are focused on
minimizing these risks in newly signed contracts and projects implemented in 2025. The Company introduced number of
changes to increase efficiency of the operations: the management team was strengthened, the structure was simplified, etc
A strong emphasis is placed on controlling the operations of subsidiaries to ensure the growth of profitable activities and
effective risk management.
2.7. Information on Shares
As of 13 July 2006, the ordinary registered shares of PST Group AB are listed on the Official Trading List of Nasdaq Vilnius
AB (company symbol PTR1L).
The Company has the contract for securities accounting signed with Šiaulių Bankas AB.
Share type
Number of shares, units
Nominal value, EUR
Total nominal value,
EUR
Emission code
ISIN
Ordinary registered shares (ORS)
16,350,000
0.29
4,741,500
LT0000101446
Ukmergės str. 219, Vilnius +370 620 84120 pst@pst.lt www.pst.lt
20
Information on the price of the Company’s PTR1L shares on Nasdaq Vilnius stock exchange in 2020-2024:
Indicator
2024
2023
2022
2021
2020
Highest price, EUR
0.548
0.582
0.694
0.838
0.85
Lowest price, EUR
0.45
0.45
0.50
0.53
0.52
Average price, EUR
0.499
0.514
0.564
0.677
0.629
Share price as of the end of reporting period, EUR
0.495
0.475
0.518
0.66
0.57
Turnover, units
1,001,085
772,677
991,215
2,935,832
1,980,134
Turnover, EUR million
0.50
0.40
0.56
1.99
1.25
Capitalisation, EUR million
8.09
7.78
8.47
10.79
9.32
Company’s share price variation on Nasdaq Vilnius Stock Exchange in 2020-2024 (EUR):
Comparison of PTR1L PST Group and OMX Vilnius Benchmark GI indexes in 2024:
Ukmergės str. 219, Vilnius +370 620 84120 pst@pst.lt www.pst.lt
21
GOVERNANCE
AND
REMUNERATION
REPORT
Ukmergės str. 219, Vilnius +370 620 84120 pst@pst.lt www.pst.lt
22
3. Governance report
3.1. Governance
PST Group AB is guided by the Law on Companies, the Law on Securities, the Company’s Articles of Association, and
other legal acts of the Republic of Lithuania and internal legislation.
The Company’s Articles of Association and the Register of Legal Entities provide for the following bodies of the Company:
• The General Meeting of Shareholders;
• Board;
• Company’s Chief Executive Officer (CEO).
The corporate governance system ensures fair treatment of all shareholders, including minority and foreign shareholders,
and protects the rights of the shareholders
The corporate governance system ensures that any information on all essential issues, including financial situation,
operation and the Company’s management, is disclosed in a timely and accurate manner.
The Audit Committee of the Company gives recommendations to the Board on nomination of an audit firm/auditor. The
Board selects the candidate for the audit firm/auditor and submits it to the General Meeting of Shareholders for approval.
This ensures independence of the conclusions and opinion provided by the audit firm.
In accordance with the procedure established by the laws of the Republic of Lithuania, all material events related to
operation of the Company and information on the time and place of the General Meeting of Shareholders are published on
the website of the Company https://www.pst.lt/en/for-investors/material-events and on the stock exchange NASDAQ Vilnius
AB (www.nasdaqomxbaltic.com).
3.2. Authorised capital structure and shareholders
As of 31 December 2023, the Company’s share capital amounted to EUR 4,741,500 and was divided into 16,350,000 units
of ordinary registered shares with the nominal value of EUR 0.29 each. All the shares are fully paid. The proof of ownership
is the record in the securities accounts.
The Company has not acquired any of its own shares.
As of 31 December 2024, the total number of the shareholders was 1,704. Distribution of shareholders by residence country
and legal form:
Investors
Number of shares, units
Ownership interest, %
Foreign investors
Legal persons
2,162,447
13,2%
Natural persons
1,374,929
8,4%
Local investors
Legal persons
9,226,608
56,4%
Natural persons
3,586,016
21,9%
Ukmergės str. 219, Vilnius +370 620 84120 pst@pst.lt www.pst.lt
23
Shareholders holding or controlling more than 5% of the authorised capital of the Company:
Full name of a shareholder
(company name, type,
headquarter address, company
code)
Number of ordinary registered
shares held by a shareholder
under ownership right (pcs.)
Portion of the authorized capital
held (%)
Portion of votes granted by the
shares held under ownership
right (%)
HISK AB, S. Kerbedžio st. 7,
Panevėžys, company code
147710353
8,138,932
49.78
49.78
PROSPERUS GRUPĖ UAB,
Tilžės st. 149, Šiauliai, 76348
Lithuania, 09320 Vilnius Lithuania,
LT, company code 304469642
817,944
5
5
Freely floating shares
(shareholders holding or
controlling less than 5% of the
issued capital)
8,211,068
45.22
45.22
The number of shares carrying votes at the General Meeting of Shareholders of PST Group AB is 16,350,000, one ordinary
registered share of the Company carries one vote at the General Meeting of Shareholders.
Information on significant directly or indirectly held share portfolios
As of December 31, 2024, The Company has no information available on directly or indirectly held share portfolios. The
Company has no information available on any arrangements between shareholders.
Information on any transactions with related parties as prescribed by Article 37(2) of the Law on Companies of the
Republic of Lithuania
There were no such transactions concluded
Information on shareholders with special control rights
There are no shareholders with special control rights in the Company. The ordinary dematerialised shares of the Company
grant equal voting rights to all shareholders of the Company.
Information on all existing limitations on voting rights
The Company has no information available on limitations on voting rights.
3.3. Dividends
The decision to pay dividends is taken and the amount to be paid as dividends is set by the General Meeting of
Shareholders. The Company pays the allocated dividends within 1 month from the date when decision on profit
appropriation has been taken.
The persons who were the shareholders of the Company at the end of the tenth business day from the General Meeting of
Shareholders that adopted the relevant decision are entitled to the dividends.
Dividends are taxable in accordance with the Law on Income Tax of Individuals and the Law on Corporate Income Tax of
the Republic of Lithuania.
The Ordinary General Meeting of Shareholders of PST Group AB that took place on 30 April 2024 did not come to the
decision to pay dividends.
Ukmergės str. 219, Vilnius +370 620 84120 pst@pst.lt www.pst.lt
24
3.4. General Meeting of Shareholders
The General Meeting of Shareholders is the highest governing body of the Company, resolving the issues assigned to its
competence by the Law on Companies and the Articles of Association of the Company. The competence of the General
Meeting of Shareholders does not differ from that of the competence prescribed by the Law on Companies of the Republic
of Lithuania.
The Company’s CEO attends shareholders’ meetings, while CFO and a member of the Board attend as required depending
on the issues under discussion.
3.5. Board
The Board of the Company consisting of five members is elected by the General Meeting of Shareholders for a period not
longer than 4 years. At present there are five members in the Board, of which 2 (two) members are independent. The
members of the Board represent the shareholders and perform the supervisory and control functions. The activities of the
Board are managed by the Chair. The Board elects the Chair from the members of the Board. The term of office of all
members of the Board will end on 9 April 2025. The procedure of electing and dismissing the members of the Board is not
different from that prescribed by the Law on Companies of the Republic of Lithuania.
The Articles of Association may be amended only by the General Meeting of Shareholders by the qualified majority of at
least 2/3 of the total votes of the shareholders attending the meeting. The resolution amending the Articles of Association
is adopted following the procedure set forth in the Law on Companies of the Republic of Lithuania.
The powers of the members of the Board are set forth in the Law on Companies of the Republic of Lithuania and the Articles
of Association.
Members of the Board
Justas Jasiūnas, Chair
Educational background: Mykolas Romeris University, Master in Law
Place and position of employment: Consultant at PST Group AB (company code 147732969, P. Puzino st. 1, Panevėžys).
Participation in activities of other companies:
• Board Member at HISK AB (company code 147710353, S. Kerbedzio st. 7, Panevėžys);
• Chair at Aliuminio Fasadai UAB (company code 305412441, Pramonės st. 7, Panevėžys) (until 27/01/2025);
• Chair at Vekada UAB (company code 147815824, Tinklų g. 7, Panevėžys) (until 28/01/2025);
• Board Member at Stadus UAB (company code 148284718, Pramonės st. 5, Panevėžys) (until 20/01/2025);
• Board Member at PST investicijos UAB (company code 124665689, Ukmergės st. 219, Vilnius);
• Board Member at Lauktuvės Jums UAB (company code 147797155, Laisvės ave. 26, Panevėžys);
• Board Member at Gustonių Žemės Ūkio Technika UAB (company code 168581940, S. Kerbedžio st. 7F,
Panevėžys).
As of 31 December 2024, held no shares of the Company.
Ukmergės str. 219, Vilnius +370 620 84120 pst@pst.lt www.pst.lt
25
KRISTINA MAČIULIENĖ, Board Member
Educational background: Kaunas University of Technology, Bachelor in Business Administration, Lithuanian University of
Law, Master in Law.
Place and position of employment: Expert-Consultant at HISK AB (company code 147710353, S. Kerbedzio st. 7,
Panevėžys).
Participation in activities of other companies:
• Board Member at HISK AB (company code 147710353, S. Kerbedzio st. 7, Panevėžys);
• Board Chair at Stadus UAB (company code 148284718, Pramonės st. 5, Panevėžys) (until 20/01/2025);
• Board Chair at Hustal UAB (company code 148284860, Tinklų st. 7, Panevėžys) (until 17/01/2025);
• Board Member at Vekada UAB (company code 147815824, Tinklų st. 7, Panevėžys) (until 28/01/2025);
• Board Member at Aliuminio Fasadai UAB (company code 305412441, Pramonės st. 7, Panevėžys) (until
27/01/2025);
• Board Chair at Lauktuvės Jums UAB (company code 147797155, Laisvės ave. 26, Panevėžys);
• Board Chair at Gustonių Žemės Ūkio Technika UAB (company code 168581940, S. Kerbedžio st. 7F, Panevėžys).
As of 31 December 2024, held 10 (ten) shares of the Company
GINTAUTAS MAŽEIKA, Bard member
Educational background: Finance and Business Administration (EMBA).
Place and position of employment: Managing Partner at Mažeika ir Partneriai UAB (company code 303187280, Olimpiečių
st.1-49, Vilnius).
Participation in activities of other companies:
• Board Member at PRO BRO Group UAB (company code 305723296 Senosios Pilaitės rd. 7, Vilnius);
• Independent Board Member at Švaros Broliai UAB (company code 122538045 Senosios Pilaitės rd. 7, Vilnius);
• Board Chair at Šypsenos Akademija UAB (company code 304689389, Švitrigailos st. 11G-100, Vilnius).
As of 30 June 2024, held no shares of the Company.
As the data of the Board Member newly elected by the resolution of the shareholders adopted at the General Meeting of
Shareholders of PST Group AB on 30 April 2024 have not been registered with the Register of Legal Entities within the
period of 30 days as provided for in Paragraph 3, Article 2.66 of the Civil Code of the Republic of Lithuania, the Board
Member is subject to re-election. For this reason, on the initiative and following the resolution of the Board of PST Group
AB of 25 September 2024, Mr. Mažeika was re-elected as the Board Member in the Extraordinary General Meeting of
Shareholders.
LINA SIMAŠKIENĖ, independent Board Member
Educational background: Kaunas University of Technology, Engineer-Economist.
Place and position of employment: Chief Financial Officer at IOCO Packaging UAB (company code 110564826, Pušaloto
st. 212, Panevėžys).
Participation in activities of other companies:
• Chief Accountant at IOCO UAB (company code 302547850, Verkių st. 25C-1, Vilnius);
• Chief Accountant at Pokštas UAB (company code 168424572, Gustonys vlg., Naujamiestis eld., Panevėžys District
Municipality);
Ukmergės str. 219, Vilnius +370 620 84120 pst@pst.lt www.pst.lt
26
• Chief Accountant at Stenrosus UAB (company code 300007108, B. Sruogos st. 6-14, Vilnius).
As of 31 December 2024, held no shares of the Company.
DARIJUS VILČINSKAS, independent Board Member
Educational background: Vilnius Gediminas Technical University (VILNIUS TECH), Master.
Place and position of employment: Director at VIP Centras UAB (company code 301151200, Žirgo st.2-74, Vilnius); Director
at UAB Balance Investments (company code 305897158, A. Domaševičiaus st. 9, Vilnius); Director at Restoda UAB
(company code 305951894, Santariškių st. 75-34, Vilnius).
Participation in activities of other companies: Board Member at Hunters Club Truskava.
As of 31 December 2024, held no shares of the Company.
18 (eighteen) Board meetings were held in 2024. The attendance of the Board members during 2024 was as follows:
Meeting
Justas Jasiūnas
Gvidas Drobužas
Kristina
Mačiulienė
Gintautas Mažeika
Lina Simaškienė
Darijus Vilčinskas
30/01/2024
+
-
+
+
+
07/02/2024
+
+
+
+
+
28/02/2024
+
-
+
+
+
20/03/2024
+
-
+
+
+
09/04/2024
+
+
+
+
18/04/2024
+
+
+
+
15/05/2024
+
+
+
+
29/05/2024
+
+
+
+
+
13/06/2024
+
+
+
+
+
10/07/2024
+
+
+
+
+
18/07/2024
+
+
+
+
+
30/07/2024
+
+
+
+
+
27/08/2024
+
+
+
+
+
25/09/2024
+
+
+
+
+
03/10/2024
+
+
+
+
+
06/11/2024
+
+
+
+
+
04/12/2024
+
+
+
+
+
11/12/2024
+
+
+
+
+
Total:
18
1
18
11
18
18
3.6. Administration
The Chief Executive officer of the Company is the Managing Director. The Managing Director is the sole governing body of
the Company. The Managing Director is the main person managing and representing the Company. The Board elects and
dismisses the Chief Executive Officer of the Company – the Managing Director, fixes his salary, approves his job description,
gives incentives and imposes penalties. The Managing Director shall organize the activities of the Company.
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27
TOMAS STUKAS – Head of the Company Administration, Managing Director.
Educational background: Vilnius Gediminas Technical University, Bachelor’s Degree in Industry Engineering; Vilnius
Gediminas Technical University, Master’s Degree in Industry Engineering.
As of 31 December 2024, held no shares of the Company.
MINDAUGAS AMBRASAS – Chief Financial Officer (from 29/07/2024).
Educational background, qualification: Vilnius University, Master’s Degree in Economics.
As of 31 December 2024, held no shares of the Company.
3.7. Audit Committee
The General Meeting of Shareholders of PST Group AB elects the Audit Committee. The Audit Committee consists of three
members, two of them being independent. The term of office of the Audit Committee is one year. The continuous term of
office of a committee member cannot exceed 12 years. The Audit Committee performs its duties in accordance with Article
58, point 3 of the Law on Audit of Financial Statements and Other Assurance Services of the Republic of Lithuania.
The following members were elected to the Audit Committee at the Annual General Meeting of Shareholders of PST Group
AB on 30 April 2024:
DRĄSUTIS LIATUKAS – an independent auditor, Head of Finansų Auditorius UAB, auditor. As of 31 December 2024, held no
shares of the Company;
IRENA KRIAUČIŪNIENĖ – an independent auditor. As of 31 December 2024, held no shares of the Company;
LINA RAGELIENĖ – Chief Accountant of PST Group AB. As of 31 December 2024, held no shares of the Company.
3.8. Information on significant related party transactions
In 2024, no loans, guarantees, sureties were granted, and no property was transferred to Board Members or top managers
of PST Group AB.
All related party transactions are disclosed in the Notes to the Separate Financial Statements (Note 6.1.29) and the
Consolidated Financial Statements (Note 7.1.28).
3.9. Corporate Governance Reporting Form
PST Group AB, acting in compliance with Article 22 (3) of the Law on Securities of the Republic of Lithuania and paragraph
24.5 of the Listing Rules of Nasdaq Vilnius AB, 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 the Code or some of its provisions or recommendations, the specific provisions or recommendations that are not
complied with must be indicated, the reasons for such non-compliance must be specified, and other explanatory information
indicated in this form must be presented.
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28
3.9.1. Free-form summary of the Corporate Governance Report
PST Group AB generally adheres to the recommendatory Corporate Governance Code for the Companies Listed on
NASDAQ Vilnius. Referring to the Articles of Association, the Company’s bodies include the General Meeting of
Shareholders, the Board and CEO. According to the Law on Companies of the Republic of Lithuania, either two (supervisory
and management) or one collegial management body may be set up in the Company at the discretion of the Company. The
Company does not have a Supervisory Council. Following the Articles of Association of the Company, the Board is set up
of 5 members, which are elected for the period of four years. The members of the Board represent the shareholders and
perform the supervisory and control functions. Only the Audit Committee, which is elected for the period of one year, is
formed in the Company. The functions of the Nomination and Remuneration Committees are performed by the Board. The
corporate governance system ensures fair treatment of all shareholders, including minority and foreign shareholders, and
protects the rights of the shareholders
In its Management Report, in accordance with the requirements of the legal acts, the Company provides information on the
total amounts of money calculated during the reporting period to the Board Members, the Chief Executive Officer and Chief
Accountant of the Company.
The corporate governance framework should ensure that timely and accurate disclosures are made on all material matters
concerning the company, including its financial position, performance and corporate governance.
The audit firm is proposed by the Board and elected by the General Meeting of Shareholders, thus ensuring independence
of the conclusions and opinion provided by the audit firm.
3.9.2. Structured table:
PRINCIPLES/RECOMMENDATIONS
YES/NO/NOT
APPLICABLE
COMMENTARY
1.Principle: 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 have equal access to the information and/or
documents provided for by law and should be able to participate in
decisions that are important for the company.
Yes
All information that shall be made public in
accordance with legal acts is published in
Lithuanian and English via informational system of
stock-exchange Nasdaq Vilnius and on the
website of the Company. The venue, date and
time of the Meeting of Shareholders convened by
the Company are chosen in such a way as to
ensure participation of all shareholders in the
decision-making process of the Company.
1.2.It is recommended that a company’s capital should consist only of
shares that give their holders equal voting, ownership, dividend and other
rights.
Yes
The Company’s issued share capital consists of
16,350,000 ordinary shares, with the nominal
value of 0.29 EUR each, which provide their
holders equal voting, property, dividend and other
rights.
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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
The rights attached to the shares are indicated in
the Articles of Association of the Company, which
are published on the website of the Company.
1.4.Exceptional transactions of major importance, such as the disposal of
all or almost all of the company's assets, which would effectively amount to
a disposal of the company, should be subject to the approval of the
General Meeting of Shareholders.
No
The Articles of Association of the Company do not
provide that the mentioned transactions are
subject to approval of the General Meeting of
Shareholders. The shareholders of the Company
approve the transactions for approval of which
they have the right prescribed by the Law on
Companies of the Republic of Lithuania and the
Articles of Association of the Company.
1.5.The procedures for organising and participating in the General Meeting
of Shareholders should give shareholders equal opportunities to participate
in the General Meeting of Shareholders and should not prejudice the rights
and interests of shareholders. The choice of the place, date and time of the
General Meeting should not preclude the active participation of
shareholders in the General Meeting. In the notice of the General Meeting,
the company should indicate the latest date on which the proposed draft
resolutions can be submitted.
Yes
The Company convenes a General Meeting of
Shareholders in accordance with the procedure
established by the Law on Companies of the
Republic of Lithuania.
1.6.In order to ensure the right of shareholders living abroad to access
information, it is recommended that, where possible, the documents
prepared for the General Meeting of Shareholders be made public in
advance not only in Lithuanian, but also in English and/or in other foreign
languages. It is also recommended that the minutes of the General
Meeting of Shareholders, after signing, and/or the decisions adopted be
made public not only in Lithuanian but also in English and/or other foreign
languages. It is recommended that this information be published on the
company's website. Not all documents may be made publicly available if
their public disclosure would be prejudicial to the company or would
disclose the company’s business secrets.
Yes
All information for shareholders, notices on
convocation of General Meetings of Shareholders,
drafts of resolutions and documents proposed for
the Meeting of shareholders by the Management
Board and adopted resolutions and approved
documents are made public in Lithuanian and
English languages through the information system
of Nasdaq Vilnius Stock Exchange and published
on the website of the Company.
1.7.Shareholders entitled to vote should be able to vote at the meeting of
shareholders, either present or absent in person. Shareholders should not
be prevented from voting in advance in writing by completing a single
ballot paper.
Yes
Each shareholder can participate at the meeting in
person or delegate the participation to some other
person.
The Company allows the shareholders voting by
filling the general voting ballot in as prescribed by
the law.
1.8.In order to increase shareholders' ability to participate in General
Meetings of Shareholders, it is recommended that companies should make
greater use of modern technology to enable shareholders to participate
and vote in General Meetings of Shareholders by electronic means. In
such cases, the security of the information transmitted must be guaranteed
and the identity of the person who participated and voted must be
identifiable.
No
The Company does not comply with the provisions
of this recommendation, as it is not possible to
ensure text protection and identify the signature of
a voting person. Furthermore, in the opinion of the
Company, so far there was no need for any
modern technologies at the General Meeting of
Shareholders for the purposes of participation and
voting via electronic means of communication.
1.9.It is recommended to disclose in the notice of the draft decisions of the
convened General Meeting of the Shareholder the new nominations of the
members of the collegial body, the remuneration proposed for them, the
proposed appointment of the audit company, if these issues are included in
the agenda of the General Meeting of Shareholders. When proposing to
elect a new member of the collegial body, it is recommended that the
member's educational background, work experience and other
management positions held (or proposed to be held) be disclosed.
Yes
Information on the candidates to the members of
the Management Board of the Company is
provided to the shareholders at the General
Meeting of Shareholders with the item related to
the election of the members of the Management
Board on the agenda in accordance with the
procedure established by the Law on Companies
of the Republic of Lithuania.
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Information on the audit firm to be elected is made
public together with the notice on the draft
resolutions of the General Meeting of
Shareholders to be convened in accordance with
the procedure prescribed by the legal acts.
1.10.Members of the Company’s collegial management body, heads of the
administration
1
or 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 Managing Director, Chief Accountant, Chair
and other competent persons who can provide
information on the agenda of the General Meeting
of Shareholders always participate at the General
Meeting of Shareholders. The proposed
candidates to the members of the Management
Board, however not all, participated at the General
Meeting of Shareholders.
2.Principle: Supervisory Board
2.1.Functions and responsibilities of the Supervisory Council
The Supervisory Council should ensure that the interests of the company and its shareholders are represented, that it is accountable to
the shareholders and that it exercises objective and impartial oversight of the company's activities and its management bodies, and that it
makes regular recommendations to the management bodies.
The Supervisory Council should ensure the integrity and transparency of the company's financial accounting and control system.
2.1.1.Members of the Supervisory Council should act honestly, diligently
and responsibly in the best interests of the company and its shareholders
and represent their interests, taking into account the interests of
employees and the public good.
Not applicable
As the Law on Companies of the Republic of
Lithuania provides for the possibility to elect only
one either collegial supervision or management
body, the collegial management body, the Board
performing the supervision function, and one-
person management body, the Managing Director,
are set up in the Company. The collegial
supervising – the Supervisory Board is not formed.
2.1.2.Where the Supervisory Council’s decisions may affect the interests of
the company’s shareholders differently, the Supervisory Council should
treat all shareholders impartially. It should ensure that shareholders are
adequately informed about the company’s strategy, risk management and
control, and the management of conflicts of interest.
Not applicable
See item 2.1.1.
2.1.3.The Supervisory Council should be impartial in making decisions that
have a bearing on the company’s operations and strategy. The work and
decisions of the members of the Supervisory Council should not be
influenced by those who elected them.
Not applicable
See item 2.1.1.
2.1.4.Members of the Supervisory Council should make clear their
objection if they consider that a decision of the Supervisory Council could
be detrimental to the company. Independent members of the Supervisory
Council
2
should: (a) remain independent in their analysis and decision-
making; (b) neither seek nor accept any undue preference that may cast
doubt on the independence of the members of the Supervisory Board.
Not applicable
See item 2.1.1.
2.1.5.The Supervisory Council should oversee that the company’s tax
planning strategies are designed and implemented in accordance with the
law, to avoid flawed practices that are not in the long-term interests of the
Not applicable
See item 2.1.1.
1
For the purposes of this Code, heads of the administration are the employees of the company who hold top level management positions.
2
For the purposes of this Code, the criteria of independence of members of the supervisory council 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.
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31
company and its shareholders, which may lead to reputational, legal or
other risks.
2.1.6.The company should ensure that the Supervisory Council is provided
with sufficient resources (including financial resources) to carry out its
duties, including access to all relevant information and the right to seek
independent professional advice from external legal, accounting or other
professionals on matters within the competence of the Supervisory Council
and its committees.
Not applicable
See item 2.1.1.
2.2.Establishment of the Supervisory Council
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 Council elected by the General
Meeting of Shareholders should collectively ensure a diversity of
qualifications, professional experience and competences, as well as a
gender balance. In order to maintain an appropriate balance between the
qualifications of the members of the Supervisory Council, it should be
ensured that the members of the Supervisory Council as a whole have a
broad range of knowledge, views and experience to perform their tasks
properly.
Not applicable
See item 2.1.1.
2.2.2.Members of the Supervisory Council should be appointed for a fixed
term, with the possibility of individual re-election for a new term, in order to
ensure the necessary growth in professional experience.
Not applicable
See item 2.1.1.
2.2.3.The Chair of the Supervisory Council should be a person whose
current or former position would not be an obstacle to the impartial
exercise of his/her functions. A former CEO or the Board member of the
company should not immediately be appointed as a Chair of the
Supervisory Council. Where a company chooses not to comply with these
recommendations, information should be provided on the measures taken
to ensure operational impartiality.
Not applicable
See item 2.1.1.
2.2.4.Each member should devote sufficient time and attention to his/her
duties as a member of the Supervisory Council. Each member of the
Supervisory Council should undertake to limit his/her other professional
commitments (in particular management positions in other companies) in
such a way that they do not interfere with the proper performance of
his/her duties as a member of the Supervisory Council. If a member of the
Supervisory Council attended less than half of the Supervisory Council
meetings during the company’s financial year, the company’s shareholders
should be informed.
Not applicable
See item 2.1.1.
2.2.5.Where the appointment of a member of the Supervisory Council is
proposed, it should be disclosed which members of the Supervisory Board
are considered independent. The Supervisory Council 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
See item 2.1.1.
2.2.6.The amount of remuneration for members of the Supervisory Council
should be approved by the company’s General Meeting of Shareholders
for their activities and participation in the meetings of the Supervisory
Council.
Not applicable
See item 2.1.1.
2.2.7.The Supervisory Board should carry out an evaluation of its own
performance each year. It should include an assessment of the structure,
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32
organisation and ability to act as a group, as well as an assessment of the
competence and effectiveness of each member of the Supervisory Board
and an assessment of whether the Supervisory Board has achieved its
stated performance objectives. The Supervisory Board should publish, at
least once a year, relevant information on its internal structure and
operating procedures.
Not applicable
See item 2.1.1.
3.Principle: Board
3.1.Functions and responsibilities of the Board
The Board should ensure the implementation of the company’s strategy, as well as good corporate governance, taking into account the
interests of shareholders, employees and other stakeholders.
3.1.1.The Board should ensure the implementation of the company’s
strategy, as approved by the Supervisory Board, if it is established. In
cases where the Supervisory Board is not established, the Board is also
responsible for approving the company’s strategy.
Yes
As there is no Supervisory Board formed at the
Company, the Board performs supervisory
functions, discusses and approves the strategy of
the Company, as well as analyses and evaluates
information on the implementation of the strategy
of the Company.
3.1.2.The Board, as the collegial management body of the company,
performs the functions assigned to it by the Law and the company’s
Articles of Association and, in cases where the company does not have a
Supervisory Board, also performs the supervisory functions provided for in
the Law. In carrying out its functions, the Board should take into account
the needs of the company, shareholders, employees and other
stakeholders, as appropriate, in order to build a sustainable business.
Yes
The Company follows the strategic plan of the
Company based on which the mission of the
management bodies of the Company is to create
and maintain a strong, competitive, financially
capable and technically advanced Company that
creates and maximizes the value for the
shareholders.
3.1.3.The Board should ensure compliance with the laws and internal
company policies applicable to the company or group of companies to
which it belongs. It should also put in place appropriate risk management
and control measures to ensure regular and direct accountability of
executives.
Yes
The Board ensures compliance with the laws and
internal policy of the Company applicable to the
Company or the Group.
3.1.4.Moreover, the management board should ensure that the measures
included into the OECD Good Practice Guidance
3
on Internal Controls,
Ethics and Compliance are applied at the company in order to ensure
adherence to the applicable laws, rules and standards.
Yes
The Board complies with this guidance.
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
When appointing the Chief Executive Officer, the
Board takes into account the candidate’s
qualifications, experience and competence.
3.2.Establishment of the Board
3.2.1.The members of the Board elected by the Supervisory Board or by
the General Meeting of Shareholders if no Supervisory Council is
established should collectively ensure a diversity of qualifications,
professional experience and competences, and strive for gender balance.
In order to maintain an appropriate balance between the qualifications of
the members of the Board, it should be ensured that the members of the
Board as a whole have a wide range of knowledge, views and experience
to perform their tasks adequately.
Yes
The members of the Board of the Company are
elected by the General Meeting of Shareholders.
The members of the Board of the Company are
qualified and competent to perform their functions,
have a long experience in management.
At present females make 40% of the members of
the Board, i. e. two females and three males.
3.2.2.The names of the candidates for election to the Board, their
education, qualifications, professional experience, positions held, other
relevant professional commitments and potential conflicts of interest
Yes
Information on the positions taken by the members
of the Management Board or their participation in
operation of other companies is continuously
3
Link to the OECD Good Practice Guidance on Internal Controls, Ethics and Compliance: https://www.oecd.org/daf/anti-bribery/44884389.pdf
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should be disclosed, without prejudice to the requirements of the
legislation governing the processing of personal data, at the meeting of the
Supervisory Council at which the Board or its individual members will be
elected. If the Supervisory Council is not established, the information set
out in this point should be submitted to the General Meeting of
Shareholders. The Board should compile the data on its members referred
to in this point each year and disclose it in the company’s annual report.
collected and compiled, and at the end of every
year it is revised and presented in the reports
prepared by the Company.
3.2.3.All new members of the Board should be briefed on their duties, the
company’s structure and its activities.
Yes
The new members of the Board have been
familiarised with their duties, the structure,
operations and strategy of the Company.
3.2.4.Members of the Board should be appointed for a fixed term, with the
possibility of individual re-election, in order to ensure the necessary growth
in professional experience and sufficiently frequent reconfirmation of their
status.
Yes
The Management Board of the Company is
elected by the General Meeting of Shareholders
for the maximal four-year term in office prescribed
by the Law on Companies of the Republic of
Lithuania. Individual members of the Board or the
entire Board may be recalled by the General
Meeting of Shareholders before the end of their
term of office.
3.2.5.The Chair of the Board should be a person whose current or former
position would not be an obstacle to the impartial conduct of business. A
former CEO of the company should not immediately be appointed as a
Chair of the Board. Where a company chooses not to comply with these
recommendations, information should be provided on the measures taken
to ensure operational impartiality.
Yes
The Chair of the Board represents the main
shareholder and has never been the Chief
Executive Officer of the Company.
3.2.6.Each member should devote sufficient time and attention to his or
her duties as a Board member. If a member of the Board has attended less
than half of the meetings of the Board during the company’s financial year,
the company’s Supervisory Council should be informed, or, if there is no
Supervisory Council, the General Meeting of Shareholders.
Yes
The members of the Management Board fulfil their
functions properly: actively participate at the
meetings of collegial body and devote sufficient
time to perform their duties as a member of the
collegial body. 18 (eighteen) Board meetings were
held in 2024. For detailed information on the
attendance, see section 3.5 of the Governance
Report.
3.2.7.If, in the cases provided for in the Law, when the Board is elected in
the absence of a Supervisory Council, some of the members of the Board
will be independent
4
, it should be published which members of the Board
are considered independent. The Board may decide that a particular
member of the Board, although fulfilling all the criteria for independence
set out in the Law, may not be considered independent because of special
personal or company-related circumstances.
No
Two independent Board Members are Lina
Simaškienė and Darijus Vilčinskas. Prior to the
Meeting of Shareholders, it was published that
these two candidates for Board Membership would
be considered as independent Board Members.
3.2.8.The amount of remuneration to be paid to members of the Board for
their activities and participation in Board meetings should be approved by
the company’s General Meeting of Shareholders.
Yes
On 9 April 2021, the Extraordinary General
Meeting of Shareholders approved the Procedure
for Awarding and Paying Remuneration to
Independent Board Members of PST Group AB for
their Activities in the Board.
The members of the Board, except for the
independent members of the Board, are paid
remuneration (bonuses) by the decision of the
General Meeting of Shareholders in accordance
4
For the purposes of this Code, the criteria of independence of members of the board are interpreted as the criteria of unrelated parties defined in
Article 33(7) of the Law on Companies of the Republic of Lithuania.
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34
with the Law on Companies of the Republic of
Lithuania.
3.2.9.Board members should act honestly, diligently and responsibly in the
best interests of the company and its shareholders and represent their
interests, taking into account other interest holders. They should not
pursue personal interests in their decision-making, should be subject to
non-competition agreements, and should not, to the detriment of the
company's interests, take advantage of business information and
opportunities that are relevant to the company's activities.
Yes
Based on the data available to the Company, all
members of the Management Board act in good
will for the interests of the Company and its
shareholders, they are guided by the interests of
the Company and not those of their own or any
third parties, seek to maintain their independence
in decision-making.
3.2.10.Every year the management board should carry out an assessment
of its activities. It should include an assessment of the structure,
organisation and ability to act as a group, as well as an assessment of the
competence and effectiveness of each member of the Board and an
assessment of whether the Board has achieved its stated performance
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.
Yes/No
The internal documents of the Company do not
directly provide for an activity assessment of the
collegial bodies exercising individual supervisory
functions. However, the collegial body ensures that
its members are competent and have a variety of
knowledge, opinions and experience to perform
their tasks properly.
4.Principle: Working procedures of the Company’s Supervisory Council and the Board
The company's procedures for the work of the Supervisory Council, if established, and the Board should ensure the effective work and
decision-making of these bodies and promote active cooperation between the company’s bodies.
4.1.The Board and the Supervisory Council, if established, should work
closely together for the benefit of both the company and its shareholders.
Good corporate governance requires an open discussion between the
Board and the Supervisory Board. The Board should regularly and, if
necessary, promptly inform the Supervisory Council of all matters of
importance to the company in relation to planning, business development,
risk management and control, and compliance with the company’s
obligations. The Board should inform the supervisory board about any
derogations in its business development from the previously formulated
plans and objectives by specifying the reasons for this.
Not applicable
There is no Supervisory Board formed at the
Company.
4.2.It is recommended that meetings of the company’s collegial bodies be
held at appropriate intervals in accordance with a pre-approved schedule.
It is up to each company to decide on the frequency of meetings of the
collegial bodies, but it is recommended that they should be held at such a
frequency as to ensure the uninterrupted discussion of the company’s key
governance issues. Meetings of the company’s collegiate bodies should be
convened at least once a quarter of the year.
Yes
The meetings of the Management Board of the
Company are held at least once a month in
accordance with the Rules of Procedures of the
Management Board. The date of the next meeting
of the Management Board is agreed at each
meeting of the Management Board. If required, the
meetings of the Management Board are held at
shorter intervals.
4.3.The members of the collegial body should be informed in advance of
the convening of the meeting in order to allow sufficient time for adequate
preparation of the issues to be discussed at the meeting and for the
discussion leading to the adoption of decisions. The members of the
collegial body should be provided with all relevant material relating to the
agenda of the meeting together with the notice of the meeting. The agenda
should not be amended or supplemented during a meeting unless all
members of the collegiate body are present and agree to such amendment
or supplementation or unless there is an urgent need to deal with important
matters of the company.
Yes
The members of the Management Board are
notified of the meeting being convened and its
agenda in advance. All members of the Board get
all materials relevant to the issues on the agenda
in advance and have an opportunity to get
familiarised with them and ask questions before
and during the meeting, have the right to request
to supplement or clarify the materials relevant to
the issue to be discussed.
4.4.In order to coordinate the work of the company’s collegial bodies and
to ensure an efficient decision-making process, the chairpersons of the
company’s collegial supervisory and management bodies should
Not applicable
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coordinate the dates and agendas of the meetings to be convened and
should cooperate closely on other issues related to the company’s
management. Meetings of the company’s Supervisory Council should be
open to the members of the company’s Board, in particular where the
meeting deals with matters relating to the removal of members of the
Board, their liability and the determination of remuneration.
There is no Supervisory Board formed at the
Company.
5.Principle: Nomination, Remuneration and Audit Committees
5.1.Purpose and composition of committees
The committees established within the company should enhance the effectiveness of the Supervisory Council and, if the Supervisory
Council is not established, of the Board, which performs supervisory functions, by ensuring that decisions are taken after due deliberation
and by helping to organise the work in such a way as to ensure that decisions are not affected by material conflicts of interest.
The Committees should act independently and in a principled manner and make recommendations related to the decision of the collegial
body, but the final decision is taken by the collegial body itself.
5.1.1.Depending on the specific circumstances of the company and the
governance structure chosen, the company’s Supervisory Council and, if
the Supervisory Council not established, the Board, which performs the
supervisory functions, form committees. It is recommended that the
collegial body form Nomination, Remuneration and Audit committees
5
.
No
The collegial body of the Company’s management
is the Management Board performing the functions
of Nomination Committee and the Remuneration
Committees. The Management Board selects and
approves the candidacy of the Chief Executive
Officer of the Company – Managing Director and
agrees with the candidacies of Directors of the
Company proposed by the Managing Director. The
Board continuously evaluates their experience,
professional capabilities and implementation of the
Company’s strategic goals, hears out their reports.
The Audit Committee of the Company gives
recommendations to the Board on nomination of
an audit firm/auditor. The Board selects the
candidate for the audit firm/auditor and submits it
to the General Meeting of Shareholders for
approval.
On 30 April 2024, the Audit Committee was
elected at the Annual General Meeting of
Shareholders.
5.1.2.Companies may decide to have fewer than three committees. In this
case, companies should provide an explanation as to why they have
chosen the alternative approach and how the chosen approach meets the
objectives set by the three separate Committees.
Yes
5.1.3.The functions assigned to the committees formed in companies may
be performed by the collegial body itself in the cases provided for by law.
In such a case, the provisions of this Code relating to committees (in
particular as regards their role, functioning and transparency) should,
where appropriate, apply to the collegiate body as a whole.
No
Please see the commentary on the
recommendation provided in item 5.1.1.
The recommendation is implemented to the extent
it is related to the activities of the Audit Committee
in the Company.
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.
Yes/No
Please see the commentary on the
recommendation provided in item 5.1.1.
The recommendation is implemented to the extent
it is related to the activities of the Audit Committee
in the Company.
The Audit Committee is composed of three
members. Two members conform to the
5
The legal acts may provide for the obligation to form a respective committee. For example, the Law on the Audit of Financial Statements and Other
Assurance Services 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).
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requirements for independence. The Audit
Committee is elected for the period of one year.
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 report to the collegial body
on their activities and performance on a regular basis. The Rules of
Procedure of each committee, defining its role and specifying its rights and
duties, should be published at least once a year (as part of the information
that the company publishes annually about its governance structure and
practices). Companies should also publish each year in their annual report,
without prejudice to the requirements of the legislation on the processing of
personal data, the composition, number of meetings and attendance of
members of the existing committees during the previous year, as well as
the main operational goals and their performance.
Yes/No
Please see the commentary on the
recommendation provided in item 5.1.1.
The Audit Committee follows the Rules of the Audit
Committee prepared by the committee and
approved by the General Meeting of Shareholders.
These rules define the regulations specifying the
rights and duties of the Audit Committee, size of
the Audit Committee, term of office in the Audit
Committee, requirements for education,
professional experience and principles of
independence.
The approved Rules of the Audit Committee are
published on the website of the Company.
In 2024, two meetings of the Audit Committee
were held, with all members of the Audit
Committee in attendance.
5.1.6.In order to ensure the independence and objectivity of committees,
members of the collegial body who are not members of the committee
should normally be entitled to attend committee meetings only at the
invitation of the committee. The Committee may invite or require the
attendance of certain employees or experts of the Company. The Chair of
each committee should be able to communicate directly with shareholders.
The cases in which this should be done should be specified in the rules
governing the operation of the Committee.
Yes/No
Please see the commentary on the
recommendation provided in item 5.1.1.
The recommendation is implemented to the extent
it is related to the activities of the Audit Committee
in the Company.
5.2.Nomination committee.
5.2.1.The main functions of the Nomination Committee should be the
following:
(1) to select candidates for vacancies in the Supervisory, Governing Body
and Executive Management positions and to recommend them to the
collegial body for consideration. The Nomination Committee should assess
the balance of skills, knowledge and experience in the governing body,
develop a description of the functions and skills required for the specific
position and assess the time required to complete the assignment;
(2) regularly assess the structure, size, composition, skills, knowledge and
performance of the supervisory and management bodies, and make
recommendations to the collegiate body on how to bring about the
necessary changes;
(3) give due attention to succession planning.
Not applicable
There is no Nomination Committee formed at the
Company.
(Please see the commentary on the
recommendation provided in item 5.1.1).
5.2.2.The Company’s CEO should be consulted on matters relating to
members of the collegial body who have an employment relationship with
the company and to the Senior Management, with the right to make
proposals to the Nomination Committee.
Not applicable
5.3.Remuneration Committee.
The main functions of the Remuneration Committee should be:
submit to the collegial body proposals on the remuneration policy applied
to members of the supervisory and management bodies and the heads of
There is no Remuneration Committee formed at
the Company.
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37
the administration for approval. Such policies should cover all forms of
remuneration, including fixed remuneration, performance-related
remuneration, financial incentive schemes, pension schemes, severance
payments, as well as conditions that would allow the company to recover
amounts or suspend payments, indicating the circumstances that would
make it appropriate;
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;
review, on a regular basis, the remuneration policy and its implementation.
(Please see the commentary on the
recommendation provided in item 5.1.1).
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
6
.
Yes
The Company implements this recommendation.
On 30 April 2024, the Audit Committee was
elected at the Annual General Meeting of
Shareholders. The Audit Committee is composed
of three members, two of which conform to the
requirements for independence. The Audit
Committee organizes its activities in accordance
with the Rules of the Audit Committee approved at
the Meeting of Shareholders.
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 Audit Committee should be informed by the
company’s executives of the accounting treatment of significant and
unusual transactions, which may be accounted for in different ways.
Yes
The Audit Committee organizes its activities in
accordance with the Rules of the Audit Committee
approved at the Meeting of Shareholders.
All members of the Committee are provided with
detailed information on specific issues of the
accounting system, finances and operations of the
Company.
5.4.3.The Audit Committee should decide whether the participation of the
chair of the management board, CEO 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 able to meet the persons concerned, if
necessary, without the presence of members of the management bodies.
Yes
The Audit Committee organizes its activities in
accordance with the Rules of the Audit Committee
approved at the Meeting of Shareholders.
5.4.4.The Audit Committee should be informed about the internal auditor’s
work programme and should be furnished with internal audit reports or
periodic summaries. The Audit Committee should also be informed of the
work programme of the external auditors and should receive a report from
the audit firm describing any relationship between the independent audit
company and the company and its group.
Yes
The Audit Committee organizes its activities in
accordance with the Rules of the Audit Committee
approved at the Meeting of Shareholders.
The Audit Committee is provided with the
information indicated herein
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.
Yes
The Audit Committee organizes its activities in
accordance with the Rules of the Audit Committee
approved at the Meeting of Shareholders.
6
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 and Other
Assurance Services of the Republic of Lithuania, and the Rules Regulating the Activities of Audit Committees approved by the Bank of Lithuania.
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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
The Audit Committee makes analysis of and gives
evaluation to the financial statements of the
Company, gives recommendations on their
approval to the Board together with the reports on
their activity over the period.
6.Principle: Avoidance 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 of disclosure of conflicts of interest related to members of the
supervisory and management bodies.
The corporate governance system should recognise the rights of stakeholders as established by law and promote active cooperation
between the company and stakeholders to create wealth, jobs and financial stability. In the context of this principle, stakeholders include
investors, employees, creditors, suppliers, customers, the local community and others with an interest in the company.
A member of a company’s supervisory and management body should
avoid a situation where his or her personal interests conflict or may conflict
with the interests of the company. If such a situation does arise, a member
of the supervisory or management body of the company should, within a
reasonable period of time, inform the other members of the same body, or
the body of the company that elected him or her, or the shareholders of the
company of the existence of such a conflict of interests, indicating the
nature of the interests and, where possible, the value.
Yes
Members of the management bodies of the
Company behave in such a way that there is no
conflict of interest with the Company. During the
reporting period, there have been no known
conflict of interest between the Company and the
member of its management body.
7.Principle: Company’s remuneration policy
The company’s remuneration policy and the procedures for its review and disclosure should prevent potential conflicts of interest and
abuse in determining the remuneration of the members of the collegiate bodies and of the executives, and ensure the openness and
transparency of the company's remuneration policy, as well as the company’s long-term strategy.
7.1.The company should approve and publish 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 Remuneration Policy of the Company was
approved by the General Meeting of Shareholders
on 29 April 2020 and published on the Company’s
website.
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
The Remuneration Policy of the Company defines
the remuneration components and established the
principles of its award and payment.
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 Policy is intended to establish
only the principles of remuneration of top and
middle management staff. Please see par. 3.2.8.
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 salaries and should
generally not exceed a fraction of two years' fixed remuneration or its
equivalent. Termination payments should not be paid if the contract is
terminated because of poor performance.
Yes
The Company complies with this recommendation
in accordance with the provisions of the Labour
Code of the Republic of Lithuania within the limits
established therein.
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. In the case of a
share-based award, the shares should not vest for at least three years
after the award. After vesting, members of the collegiate bodies and
Not applicable
There is no scheme in place anticipating
remuneration of the directors in shares, share
options or any other right to purchase shares.
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executives should retain a certain number of shares until the end of their
term of office, depending on the need to cover any costs associated with
the acquisition of shares.
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
provide an overview of how the remuneration policy was implemented in
the previous financial year. This type of information should not contain
information of commercial value. Particular attention should be paid to
significant changes in the company's remuneration policy compared to the
previous financial year.
Yes
The Company discloses information about the
implementation of the Remuneration Policy in the
Annual Report.
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. Schemes where members of the collegial body and
employees are remunerated in shares or share options should be
approved by the General Meeting of Shareholders.
No
The Company does not apply any schemes under
which members and employees of a collegial body
receive remuneration in shares or share options.
8.Principle: Role of stakeholders in corporate governance
The corporate governance framework should recognise the rights of stakeholders entrenched in the laws or mutual agreements and
encourage active cooperation between the company and stakeholders in creating the company value, jobs and financial sustainability. In
the context of this principle, stakeholders include investors, employees, creditors, suppliers, customers, the local community and others
with an interest in the company.
8.1.The corporate governance framework should ensure that the rights and
lawful interests of stakeholders are protected.
Yes
The Company protects all rights of the
stakeholders, allows the stakeholders to
participate in corporate governance in the manner
prescribed by law.
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 authorised capital, involvement of creditors in corporate
governance in the cases of the company's insolvency, etc.
Yes
The Company observes the recommendations.
For example, the Company has a Co-operation
Agreement signed with the Works Council.
According to the signed agreement, the Company
informs the representatives of the Council about
the financial position of the Company, employer’s
status, expected changes, etc.
8.3.Where stakeholders participate in the corporate governance process,
they should have access to relevant information.
Yes
Detailed information on scheduled events of the
shareholders is made public following the
procedure prescribed by law, the investors
(shareholders) have sufficient opportunities to
familiarize themselves with the relevant
information and vote in adopting decisions.
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 stakeholders may submit anonymous reports
to the collegial body.
9.Principle: 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.Without prejudice to the Company’s procedures for confidential
information and trade secrets, as well as to the requirements of the
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40
legislation governing the processing of personal data, the Company’s
public disclosures should include, but not be limited to:
9.1.1.the company’s performance and financial results;
Yes
The operating and financial results of the
Company are made public in the Interim Half-Year
and Annual Reports of the Company on the
website of the Company and on the website of
stock-exchange Nasdaq Vilnius.
9.1.2.the company's business objectives and non-financial information;
Yes
Information is published in the Interim Half-Year
and Annual Reports.
9.1.3.the persons owning or controlling a shareholding in the company,
directly and/or indirectly and/or jointly with associated persons, as well as
the structure of the group of companies and the interrelationships between
them, with an indication of the ultimate beneficial owner;
Yes
All information available to the Company is
published in the Interim Half-Year and Annual
Reports of the Company.
9.1.4.the members of the company’s supervisory and management bodies,
which of them are considered independent, the company's CEO, their
shareholdings or votes in the company, and their involvement in the
management of other companies, their competence and remuneration;
Yes
Information is published in the Interim Half-Year
and Annual Reports of the Company.
9.1.5.reports from existing committees on their composition, number of
meetings and attendance of members during the previous year, as well as
on their main activities and results;
Yes
Information on composition, number of meeting
and attendance of members of the existing
committees is published in the Interim Half-Year
and Annual Reports of the Company.
9.1.6.the potential key risk factors, the company’s risk management and
supervision policy;
Yes
Information is published in the Interim Half-Year
and Annual Reports of the Company.
9.1.7.the company’s transactions with related parties;
Yes
Information is published in the Interim Half-Year
and Annual Reports of the Company.
9.1.8.key issues relating to employees and other stakeholders (e.g. human
resources policies, employee participation in the management of the
company, incentives in the form of shares or share options, relations with
creditors, suppliers, the local community, etc.);
No
There is no scheme in place anticipating
remuneration of the employees in shares, share
options or any other right to purchase shares.
9.1.9.the company’s governance structure and strategy;
Yes/No
Information is published in the Interim Half-Year
and Annual Reports of the Company.
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 relieve a company of its obligation to
disclose information as required by law.
Yes
Information is published in the Interim Half-Year
and Annual Reports of the Company.
9.2.When disclosing the information specified in Item 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
The Company complies with the recommendation
and discloses information about the results of the
Company and the Group of its subsidiaries.
Information is published in the Interim Half-Year
and Annual Reports of the Company.
9.3.When disclosing the information specified in Item 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
Yes
The information specified in the recommendation
in provided in the Annual and Interim Half-Year
Reports of the Company.
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41
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 CEO of the company should be disclosed, as provided for in
greater detail in Principle 7.
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 Company discloses the information via the
information disclosure system used by the Nasdaq
Vilnius stock exchange in the Lithuanian and
English languages simultaneously. The Company
does not disclose the information likely to impact
the price of the issued by it securities
in its comments, interviews or otherwise by the
time such information is announced via the
information system of the Stock Exchange.
10.Principle: 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
position and financial performance 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
The independent audit company performs auditing
of the individual and consolidated (the Group)
annual financial statements of the Company and
its subsidiaries in accordance with the
International Accounting Standards applicable in
the European Union. The independent audit
company evaluates conformity of the Annual
Report to the audited Financial Statements.
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
The Management Board proposes an audit firm to
the General Meeting of Shareholders.
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
Council or, if the Supervisory Council 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
In 2024, the firm of auditors provided no services
other than auditing.
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4. Remuneration report
The Remuneration Report of PST Group AB has been prepared for the reporting financial period of the year 2024. The
report has been prepared in accordance with the Law on Financial Reporting of Enterprises of the Republic of Lithuania,
the Ordinary General Meeting of Shareholders held on 29 April 2020 approved the Remuneration Policy for Top and Middle
Management of PST Group AB and the Extraordinary General Meeting of Shareholders held on 9 April 2021 approved the
Procedure for Awarding and Paying Remuneration of Independent Board Members of PST Group AB.
4.1. Remuneration of the Board Members
As the Law on Companies of the Republic of Lithuania provides for the possibility to elect only one either collegial
supervision or management body, the collegial management body, the Board performing the supervision function, and one-
person management body, the Managing Director, are set up in the Company.
Following the Law on Companies of the Republic of Lithuania and Articles of Association of the parent company, the Board
Members are appointed for the four-year term of office.
On 9 April 2021, the Extraordinary General Meeting of Shareholders approved the Procedure for Awarding and Paying
Remuneration to Independent Board Members of PST Group AB for their Activities in the Board. The Board members,
except for the independent members of the Board, are paid remuneration (bonuses) by the decision of the General Meeting
of Shareholders in accordance with the Law on Companies of the Republic of Lithuania.
On 9 April 2021, the General Meeting of Shareholders elected a new Board of PST Group AB. Below is information on
payments made to Board members during 2023. The Ordinary General Meeting of Shareholders of PST Group AB that
took place on 30 April 2024 did not come to the decision to pay bonuses to the Board members.
Information on remuneration of supervisory body members of the issuer in 2024 (in EUR, pre-tax):
Full name
Position
Total remuneration of
independent member of the
Board (EUR) for 2024
Total remuneration for
consultations (EUR) for 2024
Justas Jasiūnas
Chair of the Board
-
75,755
Kristina Mačiulienė
Board member
-
-
Lina Simaškienė*
Board member
39,600
-
Darijus Vilčinskas*
Board member
39,600
-
Gintautas Mažeika
Board member
26,557
-
Gvidas Drobužas (1-4 months)
Board member
-
48,800
* Independent member of the Board
The Company is not aware that the Board Members of the Board have received any remuneration from other companies
of PST Group. After the term of office for the Board expires, the Board Members are not entitled to any severance pays.
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4.2. Remuneration of the Company’s Employees
The purpose of the Remuneration Policy is to increase the operation efficiency at the Company and promote achievement
of strategic objectives. The objective of the Company goal is to maximize the efficiency of the reward programs in order to
attract and motivate highly skilled employees who are necessary for success in business.
During 2024, the salary fund attributed to the Company’s employees amounted to EUR 15.380 million compared to EUR
16.324 million in 2023. To attract high-level professionals to management positions, we aim to keep the remuneration close
to the market median of the country in which any company of the Group operates.
In general, the remuneration structure at the Company consists of two parts: Fixed Remuneration Component (FRC) and
Variable Remuneration Component (VRC). FRC range limits are set taking into account the remuneration trends in the
market, research data and comparative market, i.e. the market of the companies operating in Lithuania. VRC is a tool for
getting the Top and Middle Management directly interested in seeking for high performance of the Company, an instrument
to for creating policy and culture of the Company, clearly and accurately indicating what achievements and contributions
are valued/rewarded. The Variable Remuneration Component to the Top and Middle Management is paid once a year at
the end of the financial year and is linked to performance of the employee, team and/or the Company. The Company does
not provide for the possibility to restore variable remuneration.
The average monthly salary of the Company’s employees in 2020-2024 (in EUR, pre-tax):
Position category
2024
2023
2022
2021
2020
Managing Director
10,001
9,993
9,281
8,863
7,626
Top Management
7,708
6,049
5,528
5,107
5,323
Middle Management
4,526
4,713
4,428
4,297
3,478
Specialists
3,056
2,754
2,380
2,192
1,806
Workers
2,310
2,097
1,646
1,380
1,319
Total
2,736
2,458
2,040
1,800
1,583
The average monthly salary of the Group’s employees (in EUR, pre-tax):
Position category
2024
2023
2022
2021
2020
Top Management
6,036
5,569
5,019
4,482
3,957
Specialists
3,133
2,788
2,436
2,167
1,871
Workers
2,220
2,122
1,649
1,407
1,363
Total
2,635
2,471
2,048
1,787
1,622
Employment contracts do not include any special rights and obligations of employees or some part of them.
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4.2.1 Remuneration Structure for Managing Director and Top Management
The Fixed Remuneration Component is determined considering the impact on general operation of the Company,
management scope, decision making, complexity of activities, knowledge and experience. The remuneration determined in
the Employment Contract, taking into account the level of position and competence of the employee (conformity with the
requirements for the position). The Fixed Remuneration Component is paid on a monthly basis. The Fixed Remuneration
Component of the Top and Middle Management is reviewed minimum every 12 months. The new size of the FRC is
determined/revised based on performance assessment of the Top and Middle Management. The PAD of the Top and Middle
Management may be changed by the decision of the Board.
The Variable Remuneration Component is designed to promote achievement of the annual objectives. The size of the VRC
amounts to a fixed percentage of the annual result, which is determined and approved by the Board of the Company. The
Chief Executive Officer and directors of the Company are assigned the percentage of the profit accepted for calculating
motivation. For the Directors of the branches the percentage is determined from the profit accepted for calculating motivation
for the branch managed by him/her.
4.2.2 Annual Changes in Remuneration
Changes in performance of the Company and average salary of the employees of the Company who are not members of
the management and supervisory bodies during the last five years.
Company performance and average monthly gloss salary in 2020-2024:
Company performance
2024
2023
2022
2021
2020
Net profit (loss) (EUR thousand)
-4,923
-2,279
-1,720
304
-12,418
Earnings (loss) per share (EUR)
-0.301
-0.139
-0.105
0.019
-0.76
Assets (EUR thousand)
36,381
47,727
52,762
48,478
62,290
Average remuneration
2,736
2,458
2,040
1,800
1,583
4.2.3 Long-Term Motivation by Shares
The Company applies neither schemes under which the members of management bodies, managers and employees
receive remuneration in shares, share options or other rights to share acquisition, nor supplementary pension or early
retirement schemes.
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SUSTAINABILITY
REPORT
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5. Sustainability report
5.1. ESRS 2 General disclosures
5.1.1. About the report
This section presents the sustainability information (hereinafter - the Sustainability Report) of the joint stock company PST
Group (hereinafter - the Company; PST Group) and its subsidiaries (company together with its subsidiaries hereinafter -
the Group) prepared in accordance with the European Sustainability Reporting Standards (ESRS).
BP-1 – General basis for preparation of sustainability statements
Sustainability information presented in the report includes consolidated information for all Group companies. Separate
sustainability reports are not prepared for the Group’s subsidiaries. The scope of consolidation of sustainability information
is the same as that of financial statements, thus ensuring consistency and compatibility between financial and sustainability
data (no group companies are exempt from reporting individual or consolidated sustainability information).
Information in the Sustainability Report covers the Group's direct activities and the upstream and downstream parts of its
value chain. The Group has not made use of the option provided by the ESRS not to disclose confidential information in
relation to the ESRS disclosure requirements as it has not identified such information.
In the assessment of the Company’s management, climate-related requirements do not raise concerns regarding the
continuity of operations. The evaluations and assumptions made do not present significant risks that would require material
adjustments to the carrying amounts of assets and liabilities, or lead to impairment of long-term assets and inventories.
BP-2 Disclosures in relation to specific circumstances
For the purposes of this report, the Group follows the definitions of short, medium, and long-term as set out in Part 1 of the
ESRS (ESRS 1).
The Group includes information in its sustainability report in accordance with the Commission Delegated Regulation (EU)
2020/852 (the Taxonomy Regulation, hereinafter - Taxonomy).
1 Appendix C of the ESRS states that certain requirements are applied gradually and can, therefore, be omitted when
preparing the sustainability report in the first year of application of the ESRS. In light of this provision, the Group does not
report the disclosures in paragraphs 40.b and 40.c of SBM-1, 48.e of SBM-3, as well as disclosure requirements E1-9, E2-
6, E3-5, E4-6, E5-6, which are subject to this phase-in.
In 2024, the Group's average number of employees did not exceed 750 and it was therefore subject to additional exemptions
from the phased-in disclosure requirements. In taking advantage of these exemptions, the Group does not present in this
report the information required by disclosure requirements E4, S1, S2, S3, and S4. However, in accordance with the
disclosure requirement in BP-2, the Group continues to provide information in this report about the significant impacts, risks,
and opportunities as set out in paragraphs 17.a-e of BP-2. The Group has also used the exemption to omit information
under data points of E1-6, which request information on Scope 3 emissions and total GHG emissions.
Comparative information for previous reporting periods is not available, except for the Taxonomy indicators. Changes in the
methodology for calculating the taxonomy indicators compared to 2023 are detailed in the section EU Taxonomy Regulation
Indicators.
This is the first time that the Group has applied the ESRS standard, and therefore, all indicators have been presented in
accordance with the requirements of ESRS. The Group's indicators that help to disclose additional information specific to
the companies' activities are presented in the report under the heading PST Indicators.
There have been no other changes in the preparation or presentation of the sustainability report compared to the previous
period. No quantifiable indicators with a high level of measurement uncertainty were identified, nor were there any material
errors detected in the previous reporting period.
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5.1.2. Sustainability management
GOV-1 – The role of the administrative, management, and supervisory bodies
The administrative, management, and supervisory bodies of the PST Group are responsible for the management and
supervision of the Group's entities. The company's administration is composed of 5 top-level managers (top management):
the CEO, the Technical Director (from 22 January 2025 - the Director of Quality and Innovation), the Commercial Director,
the Financial Director and the Project Director (all members are executive, 100% male). The Board is composed of 5
members, of which 2 (40%) are females, and 3 (60%) are males; the gender balance on the Board is 0.67:1. All members
of the Board are non-executive, and two members (40%) are independent. One member of the Board works for the
Company as a consultant.
There are no designated employee representatives on the PST Group's administrative, management, and supervisory
bodies. The Company has a Workforce Council with 7 members.
The members of the Board are qualified and competent to perform their functions and have many years of management
experience. Although the Company's internal documents do not explicitly provide for evaluating the performance of the
collegial body, care is taken to ensure that the members of the Board have a wide range of knowledge, views, and
experience necessary for the proper performance of their functions.
As the Group does not have a Supervisory Board, the Board also performs supervisory functions. The Board also discusses
and approves the Group's strategy, while analysing and evaluating information on the implementation of the operational
plan. The Board - the Company's collegial management body - performs the functions of the Nomination Committee and
the Remuneration Committee. The Board selects and approves the nomination of the Company's CEO and approves the
nomination of the Directors of the Company proposed by the CEO. It regularly assesses their experience, professional
abilities, and the achievement of the Company's strategic objectives. The Shareholders' Meeting also elects an Audit
Committee for one year, composed of three members, two of whom meet the independence requirements. The Audit
Committee recommends to the Board the appointment of the audit firm or auditor.
The Group's internal documents do not formally identify each body's or individual's responsibilities for sustainability-related
impacts, risks, and opportunities. However, the Board is responsible for approving and overseeing the execution of the
Company's strategy, operational policies and objectives, including sustainability and business ethics issues. This includes
overseeing significant impacts, risks, and opportunities. This also includes approving related policies and action plans, as
well as allocating resources.
Management is responsible for monitoring impacts and risks, adjusting the strategy in response to changing circumstances.
Responsible managers monitor specific risks, take responsibility, and make decisions. Once a year, a management review
is carried out and a report is prepared and presented to the Board. Management reports regularly to the Board and
shareholders on the decisions taken, including decisions relating to the management of impacts, risks, and opportunities.
Periodic performance and risk reports are presented to the Board quarterly, half-yearly, and annually. There are also
meetings and briefings to hold management accountable for decisions which are taken.
The Company has integrated quality, environmental, occupational health, and safety management system procedures. A
list of significant environmental aspects is being developed to manage impacts and risks effectively, while a report on
implementing quality objectives and targets is prepared annually. The Board analyses the results achieved, assesses
progress, and decides if further action is necessary.
The Company ensures that the administrative, management, and supervisory body members are competent and have a
wide range of knowledge, views, and experience necessary for the proper performance of their tasks, including those
related to business ethics. For example, members of management who are knowledgeable about the material impacts,
risks, and opportunities of the Group's activities have obtained relevant certificates and qualifications.
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The CEO of PST Group holds an Occupational Health and Safety Specialist Certificate and an Energy Worker Certificate.
These accreditations provide him with the necessary competencies to identify, assess, and manage sustainability matters
related to occupational health, safety, and energy.
The Technical Director is qualified as an Occupational Health and Safety Specialist. He also holds certificates of
competence as a construction manager, allowing him to act as construction manager and construction maintenance
manager to special construction projects. He has also completed first aid training and have a qualification as a crane
operator, which ensures ability to properly supervise and organise the safe operation of dangerous machinery.
External experts and/or consultants are brought in as needed to help deepen the management team’s expertise in specific
areas, ensuring the highest standards of performance.
The background and experience of the members of the Board are described in more detail in the Governance Report
section of the PST Group AB Company’s and Consolidated Management Report 2024 (hereinafter – Management Report).
GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s
administrative, management, and supervisory bodies
In the first year of the report, during the process of conducting and approving the double materiality assessment for 2024,
the Board and management members considered all topics on the ESRS list as well as other sustainability topics of interest
to the Group. The Group does not currently have a regular procedure for communicating material impacts, risks, and
opportunities to its administrative, management and supervisory bodies. Monthly Board meetings are held to discuss
significant matters and activity reports. As the Company is undergoing structural changes, there is currently a reallocation
of responsibilities for the further development of the Group's strategy and processes related to sustainability.
GOV-3 – Integration of sustainability-related performance in incentive schemes
The Company does not currently have an incentive scheme or remuneration policy related to sustainability matters.
GOV-4 - Statement on due diligence
The Group is not subject to legal requirements for sustainability due diligence and currently the Group does not have a
specific due diligence system in place. However, the Group continuously assesses and seeks to prevent potential negative
impacts in its operations and value chain. There is also a commitment to cooperate in remediating any negative impacts it
may cause or contribute to.
Separate elements of sustainability due diligence are applied throughout the Group’s companies. The main aspects and
steps of the due diligence process set out in Chapter 4, 'Due Diligence' of ESRS 1, relate to a number of horizontal and
thematic disclosure requirements under ESRS.
A table showing how and where the application of the main aspects and steps of the due diligence process are reflected in
this Sustainability Report and are provided in the section Key Elements of Due Diligence.
GOV-5 – Risk management and internal controls over sustainability reporting
The Company does not currently have formal sustainability reporting risk management, or internal control procedures in
place. There also have not been any sustainability reporting risks identified and managed.
The Company's quality management (ISO 9001), environmental management (ISO 14001) and occupational health and
safety management (ISO 45001) systems help to manage some sustainability-related processes and data.
Nevertheless, the Group makes every effort to ensure the quality, accuracy, and reliability of sustainability information. The
Sustainability Manager coordinates the processes for collecting, analysing, and reporting on sustainability data. They also
ensure that data is collected in a timely manner and meets the required standards. Data collected is reviewed by the
Sustainability Group, which assesses the quality of the data and prepares preliminary drafts of the report. The CFO and the
Economics Department contribute to the reconciliation of the financial aspects of any ESG indicators within the Group's
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accounts. Furthermore, external consultants help to ensure that the data meets the relevant standards, while providing
methodological guidance.
In addition, various control measures are consistently applied, such as standardised data collection processes, clearly
defined benchmarks and deadlines. Quality checks are also in place across individual areas (e.g. economics, occupational
health and safety, quality and environment, and personnel departments). Such data harmonisation is essential for accuracy,
compliance with legislation, and international obligations.
5.1.3. Strategy, business model and value chain
SBM–1 Strategy, business model and value chain
PST Group, together with its subsidiaries, is one of the largest construction companies in Lithuania, operating in the
construction sector for more than 70 years. The Group has completed many major and complex projects that have
contributed to the country's economic growth, infrastructure development, and environmental goals. The Group operates in
Lithuania, Latvia, Scandinavia, and Poland. The Group's activities include the
construction and design of buildings, structures, facilities, communications, and
other objects for various purposes in Lithuania and abroad. PST Group also
designs and manufactures metal structures for construction, conducts sale of
building materials, and development of real estate. Client groups include both
private and public sectors, including municipalities.
At the end of the reporting period (31 December 2024), the Group employed 629
people (626 in Lithuania, 1 in Latvia, and 2 in Poland).
During the reporting period, the Group implemented significant structural changes
to improve efficiency and optimise the use of available resources. The operations
of the Klaipstata, Genranga, and Konstrukcija branches were transferred to the
parent company in order to reduce administrative costs, simplify processes, and
ensure a higher quality of services to customers.
At the same time, UAB Alinita, a Group company facing financial difficulties due
to market challenges, started a restructuring process to stabilise its operations
and avoid negative consequences. These changes reflect the Group's strategic
objective to ensure sustainability, efficiency, and long-term competitiveness.
Main directions and goals of the sustainability strategy
The Group is in the early stages of developing its sustainability strategy and is actively strengthening its sustainability-
related processes. It also intends to refine and integrate the strategy into its long-term business plan. The table below sets
out the main directions and targets for sustainable development up until 2027.
A more detailed description of the sustainability objectives is given later in this report, together with information on the topic-
specific standards.
Scope
Directions
Targets 2025-2026
Results 2024
Environment
Reducing GHG emissions under
the European Green Deal and
the Paris Agreement.
Calculate Scope 1, 2, and 3 GHG emissions and set
reasonable GHG reduction targets.
Calculated Scope 1 and
Scope 2 emissions.
Pollution prevention.
0 leakage incidents (annually).
0
Reducing and sorting waste
from operations.
Share of sorted waste ≥ 70% (annually).
66 %
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Social area
Ensuring the health and safety
of workers and subcontractors.
0 accidents (annually).
2
1
Promoting a culture of diversity,
equality, and inclusion.
Conduct an employee satisfaction/engagement survey.
Provide at least one training session on employee
diversity, equality, and inclusion (annually).
Not raised
Creating an internal culture of
sustainability.
Provide at least two training sessions for employees on
sustainability objectives (annually).
Not raised
Achieve at least 70% of employees participating in
sustainability training and/or at least one sustainability
initiative
2
(annually).
Not raised
Quality assurance of services
and structures.
Warranty maintenance costs - < 0.27% of total
construction revenue (annually).
0.27 %
3
Governance
Fostering a culture of business
ethics.
0 confirmed breaches of business ethics (annually).
0
Promoting responsibility in the
supply chain.
Develop a Supplier Code of Conduct integrating a
supplier questionnaire on environmental and social
issues. Ensure that at least 50% of suppliers and
subcontractors declare compliance with the Code and
submit completed questionnaires.
Not raised
Notes:
1
The number of accidents in 2024 includes only Group employees; data on subcontractor employees was not collected. It is planned to start collecting
this data with the aim of achieving an overall zero accident rate.
2
Sustainability initiatives are defined within the Group as a range of educational, sporting, environmental management and team building initiatives
related to the promotion of environmental and social employee engagement and awareness.
3
The target for 2024 was to ensure that the cost of after-sales care did not exceed 0.25%. Nevertheless, the target is considered to be very high. The
overall trend shows that the Group is delivering an increasing quality of service over time and that the cost of after-sales service is gradually decreasing.
Value chain
Group Company
Field of activity
Upstream (supply chain)
Activities of group companies
Downstream
PST Group AB
Construction
- Subcontracting services
- Raw materials, materials
(from external companies),
miscellaneous services
- Renting machinery with
services
- Scaffolding, formwork
rental
- Design
- Construction
- Subcontracting (some
subcontractors are subsidiaries)
- Construction work on own projects
(small part)
- Design services for external clients
- Use of buildings and structures
- Warranty service
- Construction waste
management
- End-of-life maintenance of a
building or structure
Aliuminio
fasadai UAB
Production
- Glass and aluminium
- Other manufacturing
materials (metal products,
sealing, and fixing materials)
- Production of aluminium profile
systems, aluminium windows and
doors
- Use of products
- Production waste management
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Vekada UAB
Services
- Equipment, materials, and
tools for the work
- Hire of machinery and
equipment
- Subcontracting services for
work
- Electrical installation work
- Low-current work including CCTV,
security and fire alarms, and
engineering systems management
- End use
- Management of waste
generated by services
UAB "Alinita"
Services
- Equipment and materials
for services
- Installation of heating, ventilation
and air-conditioning systems for
buildings, installation of indoor
plumbing, sewage and fire-fighting
systems for buildings, design,
commissioning and adjustment of
engineering systems for buildings
- End use
- Management of waste
generated by the service
"Kingsbud"
Sp.zo.o.
Trade
- Imported building materials
(sandwich panels, load-
bearing roof sheets, thermal
insulation materials, facade
and interior tiles, carpets,
PVC vinyl flooring)
- Wholesale of building materials
(Poland). "Kingsbud” has established
a branch in Lithuania, which focuses
on the wholesale of stoneware and
glazed tiles for interior and exterior
decoration
- Most of the sales are made to
Group companies (internally)
- Transportation (delivery)
- Usage
- Management of leftover building
materials and packaging waste
UAB "Šeškinės
projektai"
Real Estate
- Materials, equipment,
energy required for building
maintenance and operation
- Rental property (U219)
- Building use (tenants)
- Managing waste from the use
and maintenance of the building
Ateities projektai
UAB
Real Estate
- Real Estate
- Real estate development and rental
(sale of previously built buildings)
- Acquisition and use of real
estate
UAB "Tauro
apartamentai"
Real Estate
- Real Estate
- Development of real estate projects
- Acquisition and use of fixed
property
- Managing waste from the use
and maintenance of real estate
Group companies that operate largely separately:
Stadus UAB*
Production
- Wood
- Other building materials,
raw materials
- Manufacture, construction, and
installation of prefabricated wood-
panel structures, prefabricated
houses (installation)
- End-use
- Management of waste from
production, construction, and
installation
- Transport (export)
Hustal UAB
Production
- Raw metal
- Other production materials
(welding wire, paints)
- Design, manufacture and
installation of structural steelwork
- Supply of metal structures to other
industries
- Usage
- Management of waste from
manufacturing and installation
Note: *Former name - UAB "Skydmedis".
The Group also includes the companies PST Trests SIA (established to search for new markets and to carry out construction
work in Latvia - but no longer active) and UAB “PST investicijos” (a liquidation decision has been taken as it does not carry
out any business activity). As these companies are dormant, they do not have a material impact on the Group's operations
and there are no additional material sustainability impacts, risks, and opportunities associated with them.
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SBM-2 – Interests and views of stakeholders
The table below lists the Group's key stakeholders, the methods in which they are engaged, and the key topics raised.
There is also a brief explanation of how the Group takes into account the views and interests of stakeholders in its business
model and strategy. These aspects are described in more detail throughout the report in the relevant topic-specific sections.
Stakeholders are groups that are particularly relevant and/or significantly affected by the Group's activities, as well as
individuals and organisations that have a significant influence on the Group itself. The content of the Sustainability Report
is developed taking into account the views, needs, and expectations of key stakeholders.
Key stakeholder expectations, potential impacts, and strategic decisions within the area of sustainability are discussed at
the Group’s Board meetings. Such topics are also raised during management analysis reviews of the quality, environmental,
and occupational health and safety (EHS) management systems, during EHS Committee and Labour Council meetings, as
well as at weekly management meetings.
Stakeholder engagement
Key stakeholders
How they are engaged
Key topics of
concern/inclusion
outcomes
How the Group takes into account the results of the
engagement
Clients (customers)
- Ongoing collaboration on
services and products.
- Stakeholder survey.
- Quality of services and
buildings
- Innovations
- Sustainable solutions
(environmental impact of
buildings and services)
- Safety and welfare of
workers
- Waste reduction and
resource management
- Employee training and
education
- Customer requirements for the implementation of sustainable
solutions (e.g. BREEAM, TIS2 or other standards) are met.
- A Group Sustainability Strategy is planned.
- The Group introduces innovative, environmentally friendly
solutions, ensuring that projects meet the highest quality
standards.
- Continuous improvement of services and optimisation of
processes to manage resources more efficiently and reduce
environmental impacts.
- Employees receive regular refresher training to ensure they
are able to offer customers the most innovative and sustainable
solutions.
- Proactive communication with customers to understand their
needs and ensure smooth cooperation.
Employees
- Stakeholder survey
(employees with an email
address).
- Regular meetings with
works council health and
safety representatives,
addressing quality,
environmental, and OSH
issues.
- Meetings at construction
sites and production
facilities are held on an as-
needed basis, but at least
once a month (minutes
taken).
- The SAUGA.lt digital
platform allows employees
- Safety and welfare of
workers
- Employee training and
education
- Waste reduction and
resource management
- Quality of services and
buildings
- Innovations
- Working conditions are continuously improved, and preventive
measures are taken to ensure the health and safety of workers.
- The Group takes into account employees' experience and
suggestions to improve work processes and optimise project
delivery.
- Internal and external training programmes, opportunities for
further training, and professional development.
- Employees are encouraged to propose new solutions to
improve work efficiency and reduce environmental impact.
- A Group Sustainability Strategy is being prepared and current
actions are described in more detail within this report.
- A stakeholder survey is planned to involve all employees
through the OSH management platform SAUGA.lt.
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to comment and make
suggestions at any time.
- Involvement of employees
in subsidiaries takes place
through meetings, works
councils, employee
trustees, and DSS
committees.
- Internal and external
exchanges of information
are governed by the
procedure "Exchange of
Information. KADSSVP-
007".
Shareholders
- General meetings of
shareholders are organised.
- Interim and annual reports
on the Group's performance
are published.
All material topics.
- A Group Sustainability Strategy is being prepared and current
actions are described in more detail within this report.
Suppliers
- Constant communication
in day-to-day operations.
- Stakeholder survey.
- Safety and welfare of
workers
- Waste reduction and
resource management
- Quality of services and
buildings
- Business ethics
- Innovations
- Reducing CO2 emissions
- Use of sustainable
materials
- Compliance with security
requirements
- GDPR Compliance
- Digitalisation
- Waste sorting
- Using green energy
- Integrating electric
vehicles into operational
processes
- The Group's processes, policies, and requirements are directly
linked to the supply chain and have an impact from the design
phase to the completion of construction.
- More sustainable materials (e.g. EPD-certified) can be
purchased from suppliers according to demand/customer
requirements.
- A Group Sustainability Strategy is prepared and the
Sustainability Report provides more details on current actions.
Business partners
(incl. subcontractors,
consultants, and
employees of
subcontractors)
- Site meetings are held at
construction sites.
- Stakeholder survey.
- Daily communication in
direct activities.
- Safety and welfare of
workers
- Waste reduction and
resource management
- Business ethics
- The Group ensures that subcontractors and their employees
are involved in occupational safety and sustainability initiatives
through regular briefings and information meetings.
- Safety inspections and periodic audits are carried out on
construction sites to assess the compliance of subcontractors.
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- Water conservation and
pollution reduction
- Innovations
- Reducing CO2 emissions
and energy efficiency
- Human rights
- Creating an internal
culture of sustainability
- Diversity, equality, and
inclusion
- The Group supports innovative solutions in the construction
sector by encouraging subcontractors to use advanced
technologies and reduce their environmental impact.
- A Group Sustainability Strategy is planned and current actions
are described in more detail within this report.
Affected
communities (people
living near the
territories of projects)
- Mandatory publicity is
carried out during the initial
stages of the design
process to ensure that the
community is informed
about future projects.
- Lively meetings are held
with the community and
residents in the vicinity of
the sites, where relevant
topics of concern, including
sustainability, are
discussed.
- Presentations of the
results of environmental
impact assessments of
projects.
- Preserving the quality of
life of the population
through projects
- Availability of information
on construction progress
- Dust and noise during
construction
- Noise and dust abatement solutions are being implemented
during construction, including watering systems, working time
limits, and other preventive measures.
- Responding promptly to community comments on
environmental impacts, as needed.
- Ensuring consistent and open communication with local
residents through meetings, announcements, and other
information channels.
- A Group Sustainability Strategy is prepared and current
actions are described in more detail within the Sustainability
Report.
Consumers and end-
users
- The views of end-users
are obtained through
regular contact with
customers.
- Information on user
experience is obtained
during after-sales service,
allowing the Group to
assess the quality of
service and improve
solutions.
- Sustainable solutions that
save resources and add
value for all
- Ensuring high-quality products and services.
- Investing in new technologies to improve energy efficiency.
- A Group Sustainability Strategy is planned, the current actions
of which are described in more detail within this report.
Supervisory
authorities
(Bank of Lithuania,
State Tax Inspection,
State Building
Inspection, State
Labour Inspection,
Labour Disputes
Commission)
- Continuous engagement
with various government
authorities to monitor
regulatory developments
and ensure compliance.
All material topics
- Responding promptly to complaints, institutional comments
and recommendations, and ensuring that appropriate
performance improvement measures are implemented.
- Ensuring that legislation is constantly monitored and adapts
quickly to changes.
- A sustainability strategy for the Group is prepared and the
sustainability report provides more details on current actions.
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5.1.4. Double materiality assessment
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
The table below shows the Group's material (ESRS) sustainability topics, sub-topics, and their link to material impacts,
risks/opportunities. The topics have been grouped together to provide a comprehensive picture and to highlight any
information that may be relevant to stakeholders. The assessment of the double materiality was carried out for the first time
in 2024, so there have been no significant changes compared to the previous reporting period. The results of the Group's
double materiality assessment are planned to be reviewed annually, and therefore, the material topics and sub-topics
identified may change in the future.
Material sustainability impacts, risks and opportunities.
Key:
positive impact
⛔ negative impact
actual impact
potential impact
❗ risks
opportunities
ESRS /
Sustainability
topic
Material sub-
topics
Material impact
Material risks and/or opportunities
Value chain
Upstream
Group
activities
Downstream
E1 Climate
change
Climate change
mitigation
Adaptation to
climate change
Energy
Direct and indirect greenhouse
gas (GHG) emissions along the value
chain.
The CO2 (GHG) footprint of
buildings over the life cycle of the
building.
Risk of inaccurate GHG calculations
due to difficult access to data from
suppliers.
Inadequate GHG footprint reduction,
targets not met.
Rising taxes on fossil fuels and GHG
emissions and tightening legislation.
Use of green electricity in the
Group's activities to promote the
transition to renewable sources.
Reducing energy consumption in
the Group's operations through energy
efficiency measures.
Decreasing operating costs as a
result of clean technology adoption.
The ability to offer more sustainable,
lower GHG-emitting, energy-efficient
measures in projects, helping clients
achieve their sustainability goals.
E2 Pollution
Air pollution
Water pollution
Substances of
concern
Substances of
very high
concern
Improper, unsafe and ineffective
use and handling of hazardous
chemicals during construction.
Particulate matter (dust), noise
and dirt during construction.
The project may have negative
impacts on communities (noise, visual
pollution).
Discharges of untreated sewage
into storm sewer networks (including
pollutants from construction sites).
Environmental incidents on
construction sites (reputational damage,
EPA fines, loss of ISO certification).
Public nuisance such as noise, dust,
light pollution, and smoke emissions.
Risk of non-compliance and
inadequate management of water
resources and wastewater.
Environmental projects that
contribute to a positive image of the
Group and improve the skills of
professionals (e.g. participation in EU
renovation projects).
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Air pollution
Water pollution
Soil pollution
Pollution of
living
organisms and
food resources
Environmental pollution of all
kinds is likely to occur upstream in the
value chain of raw material extraction
and processing.
Water pollution in the supply
chain is associated with the extraction
of raw materials and the production of
building materials, especially concrete
and cement.
Release of pollutants into water
bodies and soil.
Microplastics
Microplastic pollution along the
entire value chain (use and disposal of
plastics, plastic materials, and fibres in
construction).
Water pollution
Exceeding legal requirements in
water conservation, wastewater
management, and pollution reduction
initiatives.
E3 Water and
marine
resources
Water
consumption
Water consumption along the
entire value chain (extraction of raw
materials, production of building
materials, especially concrete and
cement).
Water saving initiatives that go
beyond the minimum legal
requirements.
Water consumption during
construction, depending on the site.
Risk of non-compliance and
inadequate management of water
resources and wastewater.
E4 Biodiversity
and
ecosystems
Impacts and
dependence on
ecosystem
services
Climate change
Direct use
Pollution
Impacts on the
extent and
condition of
ecosystems
Dependence on ecosystem
services in the extraction of raw
materials (e.g. timber); possible indirect
impacts on ecosystems upstream in the
value chain.
Changes in
land use,
freshwater and
in marine use
Changes in land and water use
along the entire value chain, especially
in the extraction of raw materials.
Changes in land use in direct
activities, e.g. drainage works, land
levelling, and other places where
construction is taking place on the site
of the changed land use.
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E5 Circular
economy
Resource
inputs,
including
resource use
Resource
outputs related
to products and
services
Waste
Generation of hazardous and
non-hazardous waste due to inefficient
use of resources and the use of
materials that are not recyclable or
reusable.
Resource use (construction is a
resource-intensive activity; resource use
is high throughout the supply chain, and
waste is generated).
Applying the principles of the
circular economy to activities and
projects to minimise waste during the
life cycle of construction and buildings.
Reducing environmental pollution
through responsible management,
recycling and reuse of waste (effective
control of waste management).
S1 Own
workforce
Employee
training and
education
Lack of employee competencies
does not ensure high quality of service
(negative impact on customers and
society).
Continuous training and
competence development enable
employees to work more efficiently,
contribute to innovation and increase
the competitiveness of the company.
Upgrading the skills of existing
employees to improve their productivity
and efficiency and to expand the range
of services provided.
Safety and
welfare of
workers
A strong focus on creating a
culture of health and safety, ensuring
the physical and psychological well-
being of employees.
/ Possible accidents at work.
Fines and legal sanctions for
breaches of health and safety
requirements.
Leaks of data and information can
lead to reputational damage, fines and
legal consequences (e.g. for breaches of
GDPR).
Creating a safe and healthy
environment that helps to increase
employee motivation, reduce the risk of
injury and improve performance.
Diversity,
equality, and
inclusion
Reputational damage due to
violations of workers' rights.
Employee turnover and project
delays due to lack of employee
motivation.
Enhancing the organisation's image
as a multiethnic, diverse, and inclusive
employer by attracting talented
employees from different countries and
social groups.
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Creating an
internal culture
of sustainability
An image of a culture of
unsustainability, not meeting the
expectations of stakeholders (banks,
customers), which can lead to financial
and reputational risks and loss of
competitiveness.
Strengthening the internal culture of
sustainability - develop and implement a
plan to introduce a culture of
sustainability processes, including
training and other educational events.
S2 Value chain
workers
Working
conditions.
Other work-
related rights.
Potential human rights violations
of value chain workers.
S3 Affected
communities
Land-related
impacts
Safety-related
effects
Community protests may occur,
which could negatively affect the
company's reputation and cause project
delays.
The negative impact of media
coverage can worsen public image and
reduce trust in the company.
Encourage voluntary initiatives that
improve community well-being and
strengthen corporate social
responsibility.
S4 Consumers
and end-users
Quality of
services and
buildings
Health and
safety
Poor quality of services and
buildings, negatively affecting the
safety, health, and sustainability of end
users.
Finding, developing, and
delivering more sustainable solutions for
customers (public and customer
benefits).
Poor workmanship or product quality
can lead to additional financial and
reputational impacts.
Additional efforts to find and offer
more sustainable solutions to the
customer, thus increasing the company's
competitiveness, reputation, and range
of services.
G1 Business
ethics
Sustainability in
the supply
chain
Supplier
relationship
management,
including
payment
practices
Potential negative impacts on the
environment and people upstream in
the value chain (e.g. environmental
incidents, human rights abuses, health
and safety violations, breaches of
business ethics, non-compliance with
the law, or lack of regulation in certain
countries of origin of raw materials).
Integrating sustainability principles
into the supply chain can help a
company improve its reputation,
competitiveness, and resilience to
supply chain risks.
Irresponsible choice of suppliers
and/or poor quality work (e.g. due to
breaches of contractual agreements by
subcontractors) can lead to additional
costs, disruption of the company's
obligations, and negative reputational
impact.
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59
Company
culture
Corruption and
bribery
Failure to comply with applicable
laws, rules, and regulations, including
compliance obligations.
Cases of corruption could lead to
serious reputational risks.
Enhancing the company's image
through the application of good business
practices (increasing the confidence of
potential customers, improving the
public's perception of the company).
In light of introducing the Corporate Sustainability Reporting Directive (CSRD, EU 2022/2464), this year's report identifies
material sustainability impacts, risks, and opportunities identified through a double materiality assessment. The material
topics identified in the previous materiality assessment, the materiality matrix, and related information can be accessed in
PST's Corporate Social Responsibility and Sustainability Report 2023.
The disclosures in accordance with paragraphs 48b.b.-c. of ESRS 2 of SBM-3 are disclosed in the following sections in
conjunction with the disclosures made in the relevant ESRS topic.
The financial impact of sustainability topics
During the reporting period, sustainability risks and opportunities did not have a material impact on the Group's financial
position, results of operations, or cash flows. Nor have any risks or opportunities been identified that could significantly
change the carrying amounts of the Group's assets or liabilities in the near term.
The resilience of the Group's operations to sustainability-related risks has been assessed to the extent that it has been
included in the double materiality assessment. Only the resilience of the Group's strategy and business model to climate
change was additionally assessed - the results of the assessment are presented in the Climate Risk Assessment section.
IRO-1 - Description of the process to identify and assess material impacts, risks and opportunities
In order to identify and assess material impacts, risks, and opportunities, the Group carried out a double materiality
assessment in 2024 against the ESRS criteria. ESRS does not prescribe a specific methodology for how a company should
plan or conduct a double materiality assessment, and the Group has therefore developed a process in line with the criteria
and guidelines set out in ESRS 1. These take into account the nature and circumstances of the Group’s operations and the
good sustainability practices applied to date. The Group has relied on the general requirements of ESRS and the European
Financial Reporting Advisory Group's (EFRAG) practical application guidance. In the materiality analysis, the Company
considered both impact and financial materiality and their interrelationships.
The principle of double materiality:
• A sustainability issue is material in terms of impacts when it concerns the significant actual or potential, positive or
negative impacts of an undertaking on people or the environment in the short, medium, or long term: an inside-out
perspective.
• A sustainability issue is financially material when the sustainability issue gives rise to risks or opportunities that
have or could have a material impact on the company's business developments, financial position, financial
performance, cash flows, access to finance or cost of capital in the short, medium, or long term: an outside-in
perspective.
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60
The materiality assessment was carried out in consultation with external
and internal experts, considering the best available information at the
time of the assessment. It is noted that this is the first time that the Group
has carried out a double materiality assessment, and the Group is
continuously improving its processes to identify actual and potential
impacts, risks, and opportunities. Therefore the list of sustainability
topics identified in this assessment is not exhaustive, but may be
reviewed in the future and revised or expanded as necessary.
The process of identifying and assessing significant impacts, risks, and
opportunities involved the heads of departments and specialists
responsible for the activities related to the Group's material sustainability
topics. These were identified in the previous materiality assessment
and/or identified in the list of sustainability matters to be included in the
materiality assessment in 1 EITAS, TR 16.
The Group assessed the materiality of each sustainability issue
individually, based on the ESRS criteria, taking into account the specificities of its own operations, the sector, and the
context. The assessment of materiality was based, to the extent possible, on objective information, expert insights, and
generally accepted scientific advice. Impacts, risks, and opportunities have been assessed in the short, medium, and long
term, which are consistent with the definitions of the time periods set out in ESRS.
The main steps for assessing double materiality are:
1. Understanding the operational context: value chain and business model.
2. Evaluation of stakeholder views.
3. Identifying existing and potential impacts, risks, and opportunities.
4. Assessing, reviewing, and validating the materiality of impacts, risks, and opportunities.
Impact assessment
Assessment of impact materiality was carried out taking into account the Group’s material actual or potential, positive or
negative impact on people and the environment in the short, medium and long term. The materiality of actual negative
impact was based on the severity of the impact, while the materiality of potential negative impact was based on its severity
and likelihood. Severity of impact was determined based on scale, scope, and the nature of the irremediable harm. When
assessing potential negative impact on human rights, severity of impact was considered more important than likelihood.
The materiality of positive impact, in the case of actual impact, was based on scale and scope, and in the case of potential
impact – on scale, scope and likelihood. Based on the formulas used to assess impact materiality, actual and potential
impacts were categorised into three levels: High – very important / material (final assessment scores 15–25), Medium –
material (4–14), and Low – not material (0–3).
The materiality assessment analysed the entire value chain of the Group's entities, taking into account the operations of
PST Group and its subsidiaries, the business relationships, the geographical location of the value chain, and the affected
stakeholders. Based on various sources (list below) and information available to the Group, the factors that may give rise
to the risk of negative impacts in the direct operations and the value chain have been considered. The assessment was
carried out by assessing the stakeholder views identified by the Group through its ongoing dialogue with stakeholders in its
operations (as disclosed under SBM-2 "Stakeholder Interests and Views"), publicly available information provided by
competent organisations, and the stakeholder survey carried out as part of the previous materiality assessment.
In order to assess climate change risks and opportunities as accurately as possible, the Group has carried out an
assessment of transitional and physical climate risks and opportunities. The results of this assessment are presented in
detail in the Climate Risk Assessment and Management section below.
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61
Biodiversity transition and physical risks have not been assessed separately, as the Group's companies are not located in
or near biodiversity-protected areas, and no direct negative impacts on biodiversity have been identified in the Group's
operations.
Risk and opportunity assessment
Assessment of financial materiality was carried out taking into account the scale of the financial impact as well as the
likelihood of risks and opportunities that may arise in direct operations or within the value chain in the short, medium and
long term. Based on the formulas used to assess financial materiality, risks and opportunities were categorised into three
levels: High – very important / material (final assessment scores 15–25), Medium – material (4–14), and Low – not material
(0–3).
Risks and opportunities related to sustainability may arise from the Group's impacts on the environment and stakeholders,
or from resource dependencies. Therefore, the assessment of financial materiality has been carried out in conjunction with
the assessment of impact materiality by first assessing the impacts and then considering the linkages of impacts and
dependencies to risks and opportunities. The double materiality assessment prioritised sustainability-related risks, i.e. risks
directly related to the sustainability topics previously identified by the organisation and the sustainability topics given by the
ESRS standard.
The double materiality assessment was carried out by members of PST Group management and specialists responsible
for sustainability topics, and the results were reviewed and approved by the Board. Currently, the Group's processes for
identifying, assessing, and managing sustainability issues, including the assessment of risks and opportunities, are mainly
based on the application of ISO standards. The Company's quality management (ISO 9001), environmental management
(ISO 14001) and occupational health and safety (ISO 45001) management systems are in place to properly address these
sustainability issues. Occupational risks are assessed at each site, analysed, and measures are taken to eliminate or reduce
risks. To protect and conserve the environment and natural resources and to ensure the prevention of pollution, an
environmental plan is drawn up at the start of each project, setting out specific measures to manage the material
environmental aspects and activities involved.
The parameters of severity and likelihood of impact, magnitude, and likelihood of financial impact have been assessed on
the basis of the information available from various sources:
• Policies, reports, and internal documents developed and implemented by the Group.
• PST Group Risk and Opportunity Register 2024
• PST Group List of Material Environmental Aspects in 2024
• Value chain analysis: nature of activities, geographical areas.
• Results of the stakeholder survey (customers, suppliers, partners, and employees), 2023, and other information
available to the Group on sustainability matters relevant to stakeholders.
• Results of a previous materiality assessment carried out in 2023 under the GRI Guidelines.
• Information, studies, and surveys from competent international organisations on the sector's value chain impacts
(Leadership Group for Industry Transition report Towards a sustainable global construction and buildings value
chain; United Nations/International Energy Agency publication GlobalABC Roadmap for Buildings and
Construction).
• Annual reports from other industry players and topics of relevance identified.
• Industry rankings and materiality maps such as SASB and MSCI.
• PST Group Annual Report 2023.
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62
It should be noted that the Company, together with its subsidiaries, intends to review the double materiality assessment
process on an annual basis and to update the disclosures review and update stakeholder engagement methods as
necessary.
IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement
The Company's Sustainability Report is based on a double materiality assessment, the process and results of which are
described in detail in the disclosure section of IRO-1.
A list of the disclosure requirements that have been met in the preparation of the sustainability report (ESRS Content Index)
is provided in the ESRS Disclosed Indicators section of this report. A table of all data units required by other EU legislation
listed in Appendix B of ESRS standard can be found in the ESRS Data Points Required by Other Legislation section. The
topic of climate change is material to the Group and is included in this report.
MDR - Minimum Disclosure Requirements
The Group applies and discloses information in accordance with the minimum disclosure requirements for policies (MDR-
P), actions (MDR-A), metrics (MDR-M) and targets (MDR-T), together with the relevant disclosure requirements set out in
the topic-specific ESRS later in this report.
5.1.5. Climate risk assessment and management
In 2024, in order to prepare for the CSRD sustainability reporting requirements, the Group carried out an assessment of
climate change risks and opportunities in accordance with the requirements of the ESRS and the EU Taxonomy Regulation's
Do No Significant Harm on Climate Change Adaptation criteria (Appendix A of the Taxonomy Delegated Acts No 2021/2178
and No 2023/2486). The assessment guidelines have been developed on the basis of the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD) and the scenario analysis guidelines for non-financial companies.
Physical climate risks and transition risks and opportunities have been identified and assessed through scenario analysis.
The assessment is based on the best available information and is planned to be reviewed annually and/or in the event of
significant changes in operational circumstances or the renewal of significant physical and transformational event
projections.
Physical risk assessment
The assessment of physical risks was carried out in proportion to the scale and anticipated duration of the Group companies’
operations. The following timeframes were established for the assessment: short – until 2026, medium – from 2026 to 2030,
and long – from 2030 to 2050. These timeframes were selected considering that the operations of the Group companies
are adaptive and easily adjustable to climate-related physical phenomena – i.e. assessment over an even longer period
(beyond 2050) would not be meaningful, as climate projections beyond that point involve significant uncertainties, and it is
likely that the Group companies’ direct operations would have already been adapted by then.
In the context of long-term physical risks (extending up to 2100), the Group also assessed risks to its physical assets.
However, no significant risks were identified. Additionally, for activities outside Lithuania, the assessment did not identify
any risks that could materially affect economic performance.
The assessment was based on the introductory report "Preparation of climate change projections up to 2100"
7
prepared by
the Ministry of Environment's programme "Environment, Energy and Climate Change" (projections on a 12x12 km grid) and
7
Preparation of climate change forecasts, a national study on the sensitivity and vulnerability of Lithuanian municipalities to climate change and a climate change
adaptation plan for the most vulnerable municipality. PHASE I: PREPARATION OF CLIMATE CHANGE PROJECTIONS UP TO 2100. INTRODUCTORY
REPORT; report prepared for the Ministry of Environment of the Republic of Lithuania, Riga 2022).
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63
the "Study of climate change risks for the mid-21st century"
8
prepared by the Lithuanian Hydro-meteorological Service,
Climate and Research Unit (projections per county). The IPCC scenarios RCP4.5 and RCP8.5 for typical air pollutant
concentrations were analysed using data from these sources.
Assessment of Climate-Related Risks
The Group assessed climate-related hazards across its operations and supply chain, including construction sites, based
on the geographical locations of projects in 2024. The initial analysis focused on whether the Group’s assets or operations
would be negatively affected if a climate-related hazard were to occur in its most extreme form, including in combination
with other climate-related hazards. Subsequently, the potential for such negative impacts on assets or business operations
to significantly impair economic performance was evaluated. If a negative impact on economic performance was deemed
possible, the assessment proceeded to evaluate the specific risk’s likelihood and the scale of its financial impact. The
materiality of risks was assessed using a score derived from the product of likelihood and financial impact: High – very
important / material (final assessment scores 15–25), Medium – material (4–14), and Low – not material (0–3).
As the Group's operations are not heavily dependent on specific suppliers or supplier countries (in the event of an
interruption in the supply of key production raw materials/materials, the supplier could easily be replaced in less than 1
year), physical risks in the supply chain were only assessed in the short term.
This climate risk assessment by the Group should not be regarded as an assurance of the resilience of buildings and
structures constructed to order. The Group did not assess the resilience of buildings and structures constructed based on
client orders and designs to physical climate hazards, as such an assessment should be carried out during the design
phase of the building or structure.
The results of the physical risk assessment and adaptation solutions are summarised in the table below.
Overview of the vulnerability assessment of activities to climate-related physical hazards
Classification of physical hazards
Potential negative
impacts on activities
or assets
Assessment of
financial
materiality
Adaptation solutions
Chronic*
- Related to temperature
- Related to wind
- Related to water
- Relating to solid matter
No
Not material
Acute*
Related to
temperature
Heat waves
In individual cases,
operational processes
may be affected (e.g.
work stoppages).
Not material
During heatwaves, the usual adaptation
solutions are applied: changing working
hours and taking breaks to cool down.
Export countries have very similar
climates and the same adaptation
solutions.
Cold waves/frost
The cold weather may
limit activities, and
some work may be
suspended during cold
spells in accordance
with statutory
procedures.
Not material
Current processes are adapted for frost,
for example, rescheduling work. In the
scenarios examined, the projected
reduction in frost could alleviate the
current situation.
8
Study of climate change risks for the mid-21st century (Lithuanian Hydrometeorological Service, Climate and Research Division; analysis commissioned by the
Association of Lithuanian Banks, Vilnius 2023)
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Wildfires
To date, the Group
has not experienced
any disruptions due to
natural fires. The
likelihood of
encountering this risk
would arise from the
construction of
facilities in the forest.
Not material
Currently, the activities are not located in
or close to forests where natural fires
could occur.
Related to water
Heavy precipitation
(rain, hail, snow/ice)
Very heavy, sudden
and severe rainfall
could cause damage
to physical assets
such as vehicles and
building structures
(e.g. roofs).
Not material
The installation of water drainage
systems is foreseen to reduce the
accumulation of rainwater or the risk of
flooding.
Droughts
Increasing droughts
could lead to
increased dust during
construction. New
requirements for the
application of dust
mitigation measures
may arise.
Not material
Normal dust reduction measures are
applied. Water spraying systems are
used to reduce the spread of dust in
strong winds, and fine raw materials
(e.g. sand or gravel) are covered with
protective coverings to prevent wind
drift.
Related to wind
Storms
Potential work
stoppages and higher
costs for adaptation
measures in case of
storms.
Not material
Work is planned according to seasonal
weather trends and forecasts. All
temporary equipment, construction
machinery, construction containers, and
materials are securely fastened. Storage
of construction materials at work sites is
limited (to only the quantity required for
one shift). Protective barriers are
installed to reduce the movement of
sand and dust. Installation of temporary
covers or films on partial structures or
sensitive components. Lifting operations
are stopped at wind speeds above 15
m/s. A weather monitoring system is
used on construction sites, including
warnings of approaching storms.
Notes: * The Climate Risk Assessment considered the full list of physical hazards in Appendix A of Commission Delegated Regulation (EU) 2021/2139.
The table summarises information only for those hazards that are relevant (i.e. physical assets or activities are likely to be negatively affected). Hazards
that would not cause negative effects are not detailed in the table.
Assessment of risks and opportunities for transformation
The following timeframes were used for the assessment of transition risks: short – until 2026, medium – from 2026 to 2030,
and long – from 2030 to 2050. The Group analysed expected and potential developments based on a net-zero emissions
by 2050 scenario, which aligns with the Paris Agreement and the European Green Deal’s ultimate goal of achieving climate
neutrality by 2050. The assessment was carried out in line with TCFD guidelines, examining the classification of climate-
related transition events according to TCFD.
The climate risk assessment is currently preliminary, as the Group has not yet calculated Scope 3 GHG emissions or
developed a Transition Plan. The assessment will be refined once the Transition Plan is in place and Scope 1, 2, and 3
GHG emissions have been fully evaluated.
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The key assumptions considered, as well as the identified transition risks and opportunities, are summarised in the table
below.
Overview of the assessment of climate-related transition risks
The meaning of the colours used in the tables:
No risks/opportunities
Low - insignificant
Medium - significant
High - very important/significant
Risk assessment
Transition events (TCFD)
Potential financial impact
Materiality assessment
2026
2030
2050
Policy and law
Higher pricing of GHG
emissions
No significant risks are foreseen, as increases in raw material prices
(e.g. cement) are likely to have a uniform impact across the sector.
Increased GHG emissions
reporting obligations
The risk is that subcontractors and suppliers will not be able to
accurately calculate and report their GHG footprint due to the
increasing complexity of the calculations and the higher number of
components to be assessed. This may limit the choice of
subcontractors and increase the cost of work. However, it is expected
that all actors in the sector will adapt, so this risk is assessed as low
(not material).
Reputational and financial risks if the Group fails to meet its GHG
reduction targets on time.
Obligations and
regulation of existing
products and
services/production
processes
No risks foreseen - Regulation affects the market as a whole, and the
Group is well-placed to comply with the new requirements and meet
the growing demand for green buildings and renovations.
Litigation risk
The risk of legal disputes related to non-compliance with GHG
emissions or energy requirements remains but is not expected to
increase. The supervision of the design and construction works is
organised in a way that meets the requirements.
Technology
Cost of switching to less
polluting technologies
Significant investment to upgrade machinery - expensive equipment
can require significant financial resources. However, the Group rents
some of its major construction equipment (e.g. cranes) on a service
contract basis from suppliers, thus eliminating the need for part of the
investment in the purchase and maintenance of the equipment.
Failure to invest in new
technologies
Uncertainty about investing in new technologies and the possibility of
not getting a return on investment. Risk is managed through
incremental investment based on sector experience and consistent
analysis of returns and risks.
Replacing existing
company products and
Risks are not foreseeable - construction services are not easily
substituted, so the sector remains stable. Stadus UAB is expected to
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66
services with less
polluting alternatives
expand, and the metal sector is also likely to remain difficult to
substitute.
Market
Changes in customer
behaviour/priorities
Risks are not foreseen - the number of sustainability-educated
customers will increase over time, but no direct impact on the Group's
operations is foreseen. This trend is seen more as an opportunity.
Uncertainty in market
signals
Risks are not foreseen - even in a business-as-usual scenario,
demand for sustainable buildings and infrastructure is expected to
grow.
Rising raw material prices
As carbon-intensive building materials (e.g. cement, metals) become
more expensive in the coming years, construction costs are likely to
rise, which may lead to higher prices for services and products.
However, as this trend will affect the whole sector equally, the financial
impact on the Group's companies remains low.
Reputation
Changes in consumer
preferences
No risks are foreseen.
Increased stakeholder
concerns
No risks are foreseen - project financing already requires detailed
sustainability documentation, which has a direct impact on the market
as a whole. This is relevant for project developers but is not expected
to have a significant impact on the Group's operations.
Negative feedback from
stakeholders
No risks are foreseen.
Stigmatisation of the
sector
No risks are foreseen - the whole sector is being transformed, and
solutions to achieve climate goals in the building and construction
sector are already in place and are continuously being improved.
Overview of the assessment of climate-related transition opportunities
Assessment of opportunities
Transformation events (TCFD)
Potential financial impact
Materiality assessment
2026
2030
2050
Policy and law
Higher pricing of GHG
emissions
Expected opportunities due to the rising cost of polluting raw
materials (see below under "Market", "Rising cost of raw materials").
Increased GHG
emissions and reporting
obligations
Opportunities to work more closely with clients and subcontractors to
inform them of upcoming GHG emissions calculation and reporting
requirements, thus ensuring smoother adaptation to regulatory
changes.
Obligations and
regulation of existing
products and
services/production
processes
The growing demand for new and repeat renovations is driving up the
volume of work. However, this opportunity is assessed as not
material (low) as renovation work does not currently represent a
significant part of the activity and is not expected to increase
significantly in the medium to long term.
Litigation risk
No opportunities are foreseen.
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67
Technology
Cost of switching to less
polluting technologies
No opportunities are foreseen.
Failure to invest in new
technologies
No opportunities are foreseen.
Replacing existing
company products and
services with less
polluting alternatives
No opportunities are foreseen.
Market
Changes in customer
behaviour/priorities
Opportunity to strengthen the Group's market position to become a
leader in sustainability. PST is well positioned to meet the expected
growing demand for sustainable solutions, strengthening its
competitive advantage.
Tapping into the growing demand for green buildings and sustainable
solutions - buildings with sustainability certificates can be sold or
rented more quickly and at above-market prices. However, this trend
depends on the priorities of developers. Although the number of such
clients is increasing with increasing regulatory requirements, this
opportunity is so far seen as not material (Low).
Opportunity to take advantage of the growing demand for panel
renovation - a growing market can lead to a higher demand for
Stadus' products and services, providing prospects for expansion.
Uncertainty in market
signals
No opportunities are foreseen.
Rising raw material
prices
Opportunity to expand the use of less polluting and less regulated
materials - with the rising cost of traditional building materials, Stadus
UAB can offer alternative solutions, thus strengthening its competitive
position in the market.
Reputation
Changes in consumer
preferences
No opportunities are foreseen.
Increased stakeholder
concerns
No opportunities are foreseen.
Negative feedback from
stakeholders
No opportunities are foreseen.
Stigmatisation of the
sector
No opportunities are foreseen.
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5.2. Environmental area
5.2.1. Environmental impacts, risks and opportunities
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
(Environmental Sustainability topics)
The Group's companies operate in the construction sector, which is one of the largest consumers of resources and a
significant contributor to climate change. The construction sector is estimated to be responsible for 50% of global resource
extraction
9
and 37% of total greenhouse gas (GHG) emissions
10
. This takes into account the entire construction cycle, from
the production of building materials through to the operation and demolition of buildings.
In terms of environmental sustainability, the construction sector covers all the key sustainability topics: climate change,
pollution, use of water and other resources, biodiversity, and circular economy. The most material impacts occur at the
upstream stages of the value chain, particularly in the production of building materials, from the extraction of natural
resources to the production of the final product
11
.
Although the direct activities of the Group's companies have a limited impact, impacts specific to the construction sector
are also present to a lesser extent in the Group's projects. Construction involves the use of a large amount of building
materials and raw materials and generates significant amounts of waste. In addition, some forms of pollution are
unavoidable, such as noise, dust, particulate matter, sewage, and dirt from construction sites - all of which may have
temporary environmental impacts. Depending on the site, direct impacts on biodiversity, such as land sealing, may occur.
However, most of the Group's projects are located in urban areas, so direct negative impacts on biodiversity are minimal.
There are no significant sites where the Group's activities
negatively affect biodiverse areas.
The Group’s companies comply with all applicable
environmental legislation and continuously strive to reduce
their environmental impact. However, the Group's strategy and
business model do not currently include impact management
upstream in the value chain, an area that is planned to be
strengthened in the future. The environmental impacts of the
Group's activities will continue in the future and will, therefore,
need to be continuously monitored and managed. The Group
has not identified any environmental impacts that are specific
to its activities and do not overlap with those of the construction
sector as a whole.
The Group has not developed a formal Transition Plan, but its
adoption is foreseen for the period 2025-2026, when indirect
Scope 3 emissions will be calculated. Nevertheless, the Group
is committed to the European Green Deal and the Paris
Agreement targets, and therefore, the management of its
impacts, risks, and opportunities will be integrated into the
future strategy.
9
Stockholm Environment Institute (SEI), Towards a Sustainable Global Construction Sector, 2022. Available online: SEI website.
10
United Nations Environment Programme (UNEP), Building Materials and Climate: Constructing a New Future, 2023. Available online: UNEP website.
11
Stockholm Environment Institute (SEI), Towards a Sustainable Global Construction Sector, 2022. Access online: SEI website.
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During the reporting period, environmental risks and opportunities did not have a material impact on the Group's financial
position, results of operations or cash flows. Nor have any risks or opportunities been identified that could significantly
change the carrying amounts of the Group's assets or liabilities in the near term.
For details on the resilience of the Group's strategy and business model to climate change, see section Climate Risk
Assessment and Management. For other environmental aspects, the resilience of the Group's operations has been
assessed to the extent that it has been included in the double materiality assessment. This assessment was carried out for
the first time in 2024, so there were no significant changes compared to the previous reporting period. The results of the
Group's double materiality assessment are planned to be reviewed annually, and therefore, the material topics and sub-
topics identified may change in the future.
5.2.2. Environmental policy
MDR-P – Policies adopted to manage material sustainability matters (Environmental Sustainability
Topics)
To manage environmental impacts, risks, and opportunities, the Group is currently guided by an Environmental Policy
with clear principles for environmental responsibility:
• Taking responsibility for the environmental impact of our activities and ensuring that it is minimised.
• Reducing pollution of soil and groundwater from fuels, lubricants, and hydraulic oils.
• Assess and identify opportunities and risks to meet all environmental requirements.
• Ensuring minimal environmental impact in both small-scale construction work as well as complex and innovative
building projects.
• Deploying the latest technological solutions to help employees work more safely and efficiently.
• Reducing the amount of waste generated in construction and ensuring waste separation.
• Protecting the natural environment from negative impacts and educating employees to raise their environmental
awareness and competence.
The Group is ISO 14001 Environmental Management System certified, confirming the highest environmental standards.
The Group's activities ensure compliance with all applicable environmental legislation and as a result no environmental
breaches were recorded in 2024.
The Group's Environmental Policy applies to the direct activities of the PST Group and its subsidiaries. In order to ensure
transparency and employee involvement, the Environmental Policy is publicly available on the PST Group's website,
information boards in administrative buildings, and construction sites.
Training on environmental practices is provided to employees and partners during audits. On construction sites, regular
industrial, occupational health and safety (OHS), and environmental briefings are held with clients, subcontractors and
suppliers. In addition, worker representatives on the OHS Committee and the Labour Council ensure that the policy is
disseminated and properly implemented.
The Group consistently strives to strengthen the sustainability of its operations and to manage its environmental impact
responsibly. The Group plans to develop and implement an integrated Sustainability Policy that covers all significant
impacts, risks, and opportunities.
In 2024, the Group took active steps to comply with the new EU requirements under the Corporate Sustainability Reporting
Directive (CSRD):
• A double materiality assessment has been carried out, identifying key risks, impacts, and opportunities.
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• The Environmental Policy was reviewed in Q1 2024 and was recognised as compliant with ISO 14001.
• A Sustainability Group was set up in Q2-Q3 to assess the double materiality and develop the future strategy.
• A single Sustainability Policy covering all aspects of ESRS is planned to be adopted by the end of Q1-Q2 2025.
The Sustainability Policy will be implemented in accordance with the decisions of the Group's management and the
Sustainability Group, subject to oversight by the Board.
5.2.3. Environmental indicators
E1 CLIMATE CHANGE
E1-1 Transition plan for climate change mitigation
The Group does not currently have a formal Transition Plan in place,
but its adoption is foreseen for the period 2025-2026, following the
calculation of Scope 3 indirect emissions. Nevertheless, the Group is
committed to the European Green Deal and the Paris Agreement
targets.
E1-2 – Policies related to climate change mitigation and
adaptation
The Group's overarching policy and management system covering all
environmental topics is described at the beginning of the
environmental chapter in the Environmental Policy.
E1-3 – Actions and resources in relation to climate change
policies
Existing actions and investments:
• The Group purchases 100% green (renewable) electricity,
certified by certificates.
• Investing in the development of solar power plants – in 2024,
the Group's companies purchased new solar power plants for EUR 159.000. For the corresponding capital
expenditure indicator under the Taxonomy, see the EU Taxonomy Regulation Indicators section. The Group already
generates 21.5% of its electricity needs from renewable sources.
• Upgrading the vehicle fleet (car rental) with new, less polluting vehicles.
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The specific action plan, including GHG emission levels, decarbonisation measures and the resources to implement them,
will be determined once the GHG Emissions Reduction Plan is adopted. As 2024 has been chosen as the base year, reliable
data on the Group's emission reduction performance is not yet available.
E1-4 – Targets related to climate change mitigation and adaptation
In the future, the Group plans to adopt a Transition Plan and commit to achieving a Net Zero emissions balance by 2050.
The Group does not currently have specific GHG emission reduction targets. The Group assesses the effectiveness of its
actions by calculating its Scope 1 and Scope 2 GHG emissions under the GHG Protocol and by monitoring its energy
consumption.
E1-5 – Energy consumption and mix
Energy consumption and energy mix
Energy consumption and mix
2024
(1) Fuel consumption from coal and coal products (MWh)
0
(2) Fuel consumption from crude oil and petroleum products (MWh)
7 468.5
(3) Fuel consumption from natural gas (MWh)
208.5
(4) Fuel consumption from other fossil sources (MWh)
0
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)
1 547.9
(6) Total fossil energy consumption (MWh)
9 224.9
Share of fossil sources in total energy consumption (%)
88
(7) Consumption from nuclear sources (MWh)
0
Share of consumption from nuclear sources in total energy consumption (%)
0
• Calculate Scope 3 GHG emissions and set GHG emission reduction targets.
• Modernise vehicles by gradually shifting to less polluting or electric vehicles.
• Expanding the solar power plants to ensure that more of the energy consumed
comes from renewable sources.
• Initiate projects to reduce electricity consumption by promoting efficiency
measures and responsible energy use.
• Introduce new technologies in the construction process to reduce waste and energy
consumption.
Plans for 2025-2026
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(8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of
biological origin, biogas, renewable hydrogen, etc.) (MWh)
0.4
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)
837.8
(10) The consumption of self-generated non-fuel renewable energy (MWh)
427.3
(11) Total renewable energy consumption (MWh)
1 264.5
Share of renewable sources in total energy consumption (%)
12
Total energy consumption (MWh) (calculated as the sum of lines 6, and 11)
10 489.4
Note: The Group's non-renewable energy production was 208.5 MWh, and the Group's renewable energy production was 383.9 MWh in 2024.
Energy consumption intensity
Energy intensity per net revenue
2024
Total energy consumption from activities in high climate impact sectors per net revenue
(MWh/EUR)
0.0001042
Notes: All of the Group's activities are classified as high climate impact activities. The Group's companies are active in the construction sector, NACE
code F - Construction, and all of the Group's revenues are derived from activities in sectors with high climate impact. Cross-reference of net revenue
amounts (used as the denominator in calculating energy consumption intensity) to the financial statements: “Consolidated Statement of Comprehensive
Income”, line item “Revenue from contracts with customers”.
E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions
The table below presents the Group's estimated GHG emissions in carbon dioxide equivalent (CO₂e). The knowledge and
methodologies of market-based financial institutions and energy suppliers were used to calculate GHG emissions. The
calculation was also carried out in accordance with the GHG Protocol guidelines.
The calculation of emissions includes not only CO₂ but also other greenhouse gases (N₂O, CH₄, HFCs), which are
converted to CO₂ equivalent according to defined standard factors. The final emissions are reported as total CO₂e.
The method for consolidating emissions is operational control. The calculation includes all activities of the Group's controlled
companies that generate Scope 1 and 2 emissions.
The base year chosen for the GHG calculation is 2024. This is the first year in which PST Group has estimated its emissions
in full, including all Group companies.
Sources of emission factors used:
• IPCC (Intergovernmental Panel on Climate Change).
• Sources for the IPCC AR5 report.
• European Environment Agency guidelines for air pollution inventories.
• Association of Issuing Bodies (AIB) - Residual mix and Production mix data for electricity.
GHG emissions
Emission type
2024
PST Group AB
Other Group companies
Group
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Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO2eq)
1 680
365
2 045
Percentage of Scope 1 GHG emissions from regulated schemes
(%)
0
0
0
Scope 2 GHG emissions
Gross market-based Scope 2 GHG emissions (tCO2eq)
24
445
469
Gross location-based Scope 2 GHG emissions (tCO2eq)
41
247
288
Total GHG emissions
Total GHG emissions (market-based) (tCO2eq)
1 704
810
2 514
Total GHG emissions (location-based) (tCO2eq)
1 721
612
2 333
In 2024, the operation also generated 519 t of biogenic CO2 emissions.
GHG intensity (Scope 1 and Scope 2). PST indicator
GHG intensity by net revenue
2024
Total GHG emissions (market-based) per net revenue (tCO2eq/Monetary unit)
0.00002496
Total GHG emissions (location-based) per net revenue (tCO2eq/Monetary unit)
0.00002317
Note: Cross-reference of net revenue amounts (used as the denominator in calculating energy consumption intensity) to the corresponding line item in
the financial statements: “Consolidated Statement of Comprehensive Income”, line item “Revenue from contracts with customers”.
E1-7 – GHG removals and GHG mitigation projects financed through carbon credits
The Group did not carry out or contribute to any GHG absorption or storage projects in its operations or value chain in 2024.
E1-8 – Internal carbon pricing
The Group does not apply carbon pricing systems.
5.2.4. E2 Pollution
MDR - Minimum Disclosure Requirements (MDR-P, MDR-A, MDR-T)
The Group's overarching policy and management system covering all environmental topics is described at the beginning
of the Environmental chapter in the Environmental Policy.
Pollution prevention is an integral part of the Group's activities. The Group aims to ensure zero pollution incidents.
Although the Group does not have a separate pollution prevention policy or a time-bound action plan, this area is
managed and monitored on an ongoing basis. The Group's pollution management obligations are integrated into the
Group's Environmental Policy, which governs key environmental measures and responsibilities.
To minimise potential pollution, prevent environmental incidents and ensure a rapid and effective response, the Group
applies the following measures:
• Continuous risk analysis of construction sites and training of employees/managers to prevent dangerous situations
and strengthen the environmental culture.
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• Strict procedures for the storage and handling of wastewater and chemicals to ensure that hazardous substances
are not released into the environment.
• Accident prevention and response plans to ensure effective pollution control and minimum impact on people and
the environment. Practical exercises on construction sites based on a selected simulated emergency situation are
carried out at least once a year.
The Group found that some material aspects of pollution from construction activities – noise, dust and dirt – can have a
temporary material impact on communities living near construction sites. The Group applies the following preventive
measures:
• To prevent noise, working hours are limited in accordance
with current legislation, especially in residential areas. The
municipalities are informed of the work being carried out in
these areas. In some cases, the municipality provides a
specific plan of measures which must be implemented. In
the absence of such a plan, the works are carried out in
accordance with the legal requirements.
• Dust prevention is ensured by watering during seasonal
work and hot weather.
• Vehicle wheel washing is used to prevent mud on
construction sites. The Group has also installed an
automatic car wash with a closed water cycle, which is
rented out to construction sites as required.
In the construction process, communication with local communities is usually coordinated by the developer. During the
design phase, the developer carries out an environmental impact assessment, publicises the project, and involves
communities in the decision-making. During the construction phase, the Group communicates directly with local
communities through door notices or notice boards. The Group mainly carries out construction work on behalf of clients.
However, where the Group undertakes its own design, it responsibly follows all statutory processes, including environmental
impact assessment and publicity.
These measures reflect the Group's commitment to operating responsibly and with the highest environmental standards.
5.2.5. E3 Water and marine resources
MDR - Minimum Disclosure Requirements (MDR-P, MDR-A, MDR-T)
The Group's overarching policy and management system covering all environmental topics is described at the beginning of
the Environmental chapter in the Environmental Policy. Water conservation is an area of sustainability that is continuously
monitored and tracked, but the Group has not identified a separate policy, action plan, or specific targets in this area.
In the first assessment of the double materiality, the Group found that water consumption has a material impact, but plans
are underway to review this assessment. In accordance with the definition of the ESRS standard, water consumption
includes water withdrawn within the boundaries of a company or facility and not released into the water environment or
transferred to a third party during the reporting period.
Depending on the site, water demand can be high, but almost all of the water used goes into the city's sewerage network,
along with domestic wastewater, where it is treated and returned to the natural water cycle. This means that water is not
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irreversibly consumed. The Group's direct activities do not consume much water - for example, it may be used to wash
buildings before renovation or to make concrete.
5.2.6. E4 Biodiversity and ecosystems
MDR - Minimum Disclosure Requirements (MDR-P, MDR-A, MDR-T)
The Group's overarching policy and management system covering all environmental topics is described at the beginning of
the Environmental chapter in the Environmental Policy.
The Group's direct activities do not have a material impact on biodiversity. To date, there is no need for separate policies,
actions, or targets in this area, as most of the Group's corporate projects are located in urban areas where direct impacts
on biodiversity are limited.
5.2.7. E5 Resource use and circular economy
MDR - Minimum Disclosure Requirements (MDR-P, MDR-A)
The Group's overarching policy and management system covering all environmental topics is described at the beginning of
the Environmental chapter in the Environmental Policy.
The Group aims to reduce the environmental impact of its activities by managing all waste generated by its operations
responsibly. The Group supports and promotes the European Union's (EU) waste policy, with the waste hierarchy as its
guiding principle. This principle aims to prevent the generation of waste in the first place and then to promote reuse, followed
by recycling.
Construction waste in the Group is separated at source. Construction materials suitable for reuse are separated, and those
not suitable for reuse are sent to waste handlers. All segregation processes for waste generated on construction sites are
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carried out in accordance with applicable requirements and monitored by internal audits. Waste accounting is carried out in
the electronic GPAIS system and the proportion of waste sorted is calculated at the end of the calendar year.
E5-3 – Targets related to resource use and circular economy (MDR-T)
Voluntary waste sorting targets are set each year, defining the minimum proportion of waste to be sorted.
Scope of
application
Waste sorting objectives
2024 target
2024 result
2025 target
PST Group AB
In new-build properties
≥60%
48%
Targets are no
longer set per
object, the
overall Group
target is set
Reconstruction, modernisation, and renovation projects
≥30%
64%
Road construction sites
≥85%
99.7%
Other locations
≥45%
78%
Group
Total waste sorting in the Group
Not raised
66.4%
≥70%
GPAIS data is used to identify and calculate these indicators. The percentage is calculated on the basis of the share of
sorted waste in the total amount of waste generated (by weight).
For 2025, The Group will continue to promote the principles of the circular economy and has set a target of 70% waste
sorting.
5.2.8. E5-4 – Resource inflows
Resource inflows
The Group's main resource inflows are various building and technical materials needed for the construction of structures,
road building, finishing works, installation of engineering systems, etc. Construction processes require large quantities of
resources and their efficient management and conservation is an important part of the Group's operations.
The table below shows the quantities of key raw materials and consumables (in various units of measurement) used in the
Group's construction and manufacturing processes, which have been identified as important areas of resource use.
Resource inflows
2024
Measuring units
Quantity
Main raw materials/supplies
Manufacture of metal structures
t:
3 350.7
Metal, welding wire, packaging materials
Panel house production and construction work
t:
0.9
Wire, glue, putty
Compl..:
131.7
Security blinds, skylights, glass railings
L:
8 771.3
Primers, paints, impregnants
m:
64 912.6
Strips, sheet metal coils
m2:
205 479.8
Plasterboards, steam films, roofing panels, boards, glass, windows, doors
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m3:
6 815.4
Wood, insulation materials
Rul..:
129.0
Tapes
T. pcs:
3 962.8
Nails, screws, wood screws
pcs:
1 992 076.41
Supports, pads, nails, screws
Manufacture of aluminium profile systems
Compl..:
28.0
Automatics, door locks
L:
46.8
Installation materials
m.:
2818.0
Installation materials
m2:
22821.2
Profiles, fittings, accessories
m3:
3.4
Installation materials
pcs:
4439.0
Installation materials
Construction work
t:
23020.5
Concrete, adhesives, mortars, mixtures, metal products, sheet metal
Compl..:
1419.0
Bolts, sills, sheet metal bends
L:
32398.0
Paints, adhesives, primers
m.:
621180.5
Aluminium and metal profiles, strips, sheet metal products, cables, ducts
m2:
314694.92
Panels, sheets, metal sheets, plasterboard, PVC coverings
m3:
89968.9
Concrete, blocks, crushed stone, sand, black earth, insulation materials
mL:
221250.0
Installation foam
Rul..:
88.0
Bituminous coating
T. pcs:
58.9
Silicate bricks
pcs:
2862050.6
Reinforced concrete products, gutters, kerbs, slabs, nails, screws
Then..:
1122.2
Cable connectors, lugs, brackets
Box..:
5.0
Ducts
Note: The Group does not collect data on the weight of purchased products as they are measured in different units (m, m², pcs, packages, etc.). The
information is provided in terms of the units of measurement of the acquisition. Of the concrete used in the activity, about 5% was recycled concrete scrap.
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Waste streams generated from operations
The Group's activities in construction, manufacturing and real estate projects
generate a variety of waste streams that are specific to the construction and
industrial sectors. Construction activities generate a wide range of waste
streams, ranging from leftover building materials to demolition waste. One of
the main categories of waste is minerals such as concrete, bricks and
ceramics, which arise from the demolition of old structures or the construction
of new ones. Metallic structures, including steel, aluminium and copper, also
form a significant part of the waste stream and are generated during the
dismantling or manufacture of building elements.
In addition to these materials, construction sites often accumulate plastic
waste, such as leftover pipes or construction film, as well as glass waste from
windows, partitions, or facades. Wood waste is generated from structural
elements, pallets, and residues from finishing work. In addition, organic waste,
such as plant residues from landscaping, as well as hazardous waste, such
as used paints and chemicals, are generated during construction. Another
important waste stream is electrical and electronic equipment, as well as dust
and cement residues from the processing of building materials.
The waste generated by the Group's activities consists of a wide range of
materials, a significant proportion of which can be recycled or reused to reduce
the environmental impact and integrate them into circular economy models.
5.2.9. E5-5 – Resource outflows
Waste from operations
Waste generated, t
2024
Total Quantity
4 437.39
Hazardous
30.54
Non-hazardous
4 406.85
Waste sent for recycling*
Total quantity
589.76
Hazardous
0
Non-hazardous
589.76
Waste diverted to other recovery operations
Total quantity
3 551.16
Hazardous
0
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Non-hazardous
3 551.16
Waste sent for disposal (incineration with energy recovery)
Total quantity
265.93
Hazardous
0
Non-hazardous
265.93
Waste sent for disposal (landfill)
Total quantity
30.54
Hazardous
30.54
Non-hazardous
0
Notes: Data obtained from GPAIS and waste handlers' certificates. The waste manager assesses the quality of the waste, weighs it and completes the
data in GPAIS. No radioactive waste is generated by the activities of the Group companies.
* Confirmed by a recycling certificate from the waste handlers.
Non-recycled or recovered waste
Waste not otherwise recycled or recovered*
Total quantity, t
Share, %
2024
296.47
6.7 %
Notes: * Non-recycled waste is the sum of waste sent for disposal. In this case, according to the definition of the ESRS standard, non-recycled waste is
that which has been disposed of and has not been diverted for recycling or recovery operations.
5.2.10. EU Taxonomy Regulation Indicators
The European Union (EU) Taxonomy (the Taxonomy Regulation 2020/852 and the delegated acts adopted under it) is a
classification system for sustainable economic activities designed to channel private investments into environmentally
sustainable activities and thus contribute to the environmental objectives of the European Green Deal. This system
establishes science-based criteria for assessing the environmental sustainability of companies' activities.
Business activities that fall within the scope of the Taxonomy and meet its criteria can be recognised as sustainable. A
taxonomy-eligible activity refers to an economic activity that is described in the relevant delegated acts of the Taxonomy
Regulation, meaning it is officially included in the Taxonomy.
Companies whose revenue (Turnover), capital expenditures (CapEx), and/or operating expenses (OpEx) are related to
activities defined in the Taxonomy are required to assess and disclose the proportion of their activities that are aligned with
the Taxonomy. An activity is considered taxonomy-aligned if it meets the technical screening criteria—meaning it makes a
substantial contribution to at least one of the six environmental objectives while not causing significant harm to the remaining
five.
The EU Taxonomy covers the following environmental objectives:
• CCM – Climate change mitigation.
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• CCA – Climate change adaptation.
• WTR – The sustainable use and protection of water and marine resources.
• CE – The transition to a circular economy.
• PPC – Pollution prevention and control.
• BIO – The protection and restoration of biodiversity and ecosystems.
This report, in accordance with the provisions of the Taxonomy Regulation and the related delegated acts, presents the key
performance indicators of the Group's activities and information on the alignment of taxonomy-eligible activities with the
defined criteria.
Identification of Taxonomy-Eligible Activities and Calculation of Indicators
In 2024, in preparation for the implementation of CSRD requirements, a more detailed assessment of the Group’s activities
was carried out in accordance with the Taxonomy Regulation. To ensure more accurate data disclosure, the methodology
for calculating the indicators was reviewed and refined. Changes in the calculation of indicators, compared to previous
reporting periods, are described in detail below. Due to these changes, no retrospective recalculation of the 2023 indicators
was performed.
When calculating the taxonomy-eligible activity indicators, it was ensured that the financial amount of activities contributing
to multiple environmental objectives was included in the numerator of the respective indicator only once, thus avoiding
double counting.
Revenue
The majority of PST Group’s revenue is generated from taxonomy-eligible activities. The Group’s core activity, construction,
is considered taxonomy-eligible and falls under the activity of Construction of new buildings.
Previously, when calculating the Taxonomy turnover indicator, all construction-related revenue was included under this
activity. However, in 2024, the methodology was refined. Now, only revenue generated from the construction of residential
and non-residential buildings is included under Construction of new buildings. Revenue from other construction areas, such
as the construction of civil engineering structures, is excluded to ensure greater accuracy and better alignment with the
definitions provided in the Taxonomy.
In addition to its core construction activities, the Group also engages in other taxonomy-eligible categories, such as real
estate management and building renovation. These taxonomy-eligible activities correspond as Acquisition and ownership
of buildings and Renovation of existing buildings. The revenue attributed to these activities is detailed and presented in the
table below (see Table 1B).
Specifically, the activity Acquisition and ownership of buildings includes rental income generated from the U219 building
managed by the Group and owned by “Šeškinės projektai”.
Taxonomy-eligible revenue was calculated by linking specific activities to the definitions provided in the Taxonomy and
expressing their share in the Group’s total revenue (EUR 100.678). The line item in the financial statements that best reflects
this indicator according to Taxonomy is “Consolidated Statement of Comprehensive Income”, line item “Revenue from
contracts with customers”.
Table 1A. Revenue by Taxonomy Environmental Objectives
Proportion of turnover / total turnover
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
0 %
70.33 %
CCA
0 %
0 %
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WTR
0 %
0 %
CE
0 %
67.96 %
PPC
0 %
0 %
BIO
0 %
0 %
Capital Expenditures (CapEx)
Based on specific acquisitions attributable to taxonomy-eligible activities, in 2024 the Group’s companies acquired two new
solar power plants, falling under the activity Installation, maintenance and repair of renewable energy technologies.
Acquisitions related to the activity Acquisition and ownership of buildings refer to investments made to enhance the asset
value of the U219 building managed by “Šeškinės projektai”.
The remaining portion of long-term asset acquisitions (excluding acquisitions of subsidiaries not engaged in taxonomy-
eligible activities) was allocated to the main taxonomy activities — Construction of new buildings and Renovation of existing
buildings. The allocation was based on revenue-proportional distribution, as the same equipment is often used across
various projects in the construction sector, making it difficult to assign them directly to a single activity. This methodology
was chosen as the most appropriate, considering prevailing Taxonomy disclosure practices in the construction industry.
Capital expenditures (CapEx) for taxonomy-eligible activities were calculated by linking investments to activities defined in
the EU Taxonomy and expressing their share relative to the Group’s total capital expenditures. CapEx under the Taxonomy
includes only those acquisitions that meet the indicator definition set out in the EU Taxonomy Regulation. In the Group’s
case, this corresponds to long-term asset acquisitions in 2024 and investments made by “Šeškinės projektai” to enhance
the value of the building (EUR 1.543).
The financial statement line item that best corresponds to the CapEx indicator under the Taxonomy is the “Acquisition of
property, plant and equipment” line in the “Consolidated Statement of Cash Flows”. The amount reported under this line
only partially matches the CapEx denominator under the Taxonomy, as the definition and calculation of capital expenditure
according to the Taxonomy differ from the calculation of acquisitions of non-current assets presented in the financial
statements.
Table 2A. Capital Expenditures by Taxonomy Environmental Objectives
Proportion of CapEx / total CapEx
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
0 %
78.98 %
CCA
0 %
0 %
WTR
0 %
0 %
CE
0 %
19.82 %
PPC
0 %
0 %
BIO
0 %
0 %
Operating Expenses (OpEx)
Under the Taxonomy Regulation, operating expenses (OpEx) are defined as direct non-capitalised costs related to research
and development, building renovation measures, short-term leases, maintenance and repair, and other relevant
expenditures.
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In line with this definition, when calculating the total amount of operating expenses (the denominator), only maintenance
and repair costs as well as short-term lease expenses were included. As with CapEx, the total amount of operating expenses
was allocated across taxonomy-eligible activities based on the proportion of activity revenue, except for certain expenses
that were directly attributable to specific taxonomy-eligible activities:
• The maintenance and/or repair costs of the U219 building – allocated to the Acquisition and ownership of buildings
activity.
• The maintenance and/or repair costs of the solar power plants – allocated to the activity Installation, maintenance
and repair of renewable energy technologies.
• The maintenance, repair, and/or rental costs of light-duty vehicles – allocated to the activity Transport by
motorbikes, passenger cars and light commercial vehicles.
The taxonomy-eligible operating expenses (OpEx) ratio was calculated by dividing the operating expenses associated with
activities defined in the Taxonomy by the total amount of operating expenses (OpEx) in accordance with the Taxonomy
definition.
Table 3A. Operating Expenses by Taxonomy Environmental Objectives
Proportion of OpEx / total OpEx
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
0 %
56.33%
CCA
0 %
0 %
WTR
0 %
0 %
CE
0 %
52.31 %
PPC
0 %
0 %
BIO
0 %
0 %
Other Changes in Indicator Calculation
In the previous reporting period, the Group classified vehicle acquisitions under a taxonomy-eligible activity. In 2024, no
transport vehicles were acquired that meet the definitions of Taxonomy activities CCM 6.5 or CCM 6.6 (e.g., vehicles
compliant with EURO 5 or EURO 6 standards), and therefore, there are no capital expenditures attributable to these
activities. However, freight vehicles acquired in 2024, although not compliant with the definition of activity CCM 6.6, are
used directly for carrying out Taxonomy-aligned activities – the construction of new buildings (CCM 7.1 / CE 3.1) and/or the
renovation of existing buildings (CCM 7.2 / CE 3.2). Accordingly, it was assumed that these expenditures can be attributed
to core activities as necessary acquisitions of equipment directly related to construction activities.
By contrast, for operating expenses (OpEx), it was possible to reliably identify a portion of costs related to the maintenance,
repair, and rental of vehicles. Therefore, these expenses were allocated to the taxonomy-eligible activity Transport by
motorbikes, passenger cars and light commercial vehicles.
Assessment of Activities According to the Taxonomy
In accordance with the latest delegated regulations of the European Commission (EC) — Regulations (EU) 2021/2139 and
(EU) 2023/2486 — the activities of the PST Group may contribute to the environmental objectives of climate change
mitigation and the transition to a circular economy. In 2024, as part of preparations to comply with CSRD and Taxonomy
requirements, the Group conducted a climate risk assessment. The assessment concluded that physical climate risks are
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83
not material to the Group’s activities, therefore, the Group’s operations are not classified under taxonomy-eligible activities
related to climate change adaptation.
The Group also assessed its compliance with the Minimum Safeguards requirements, as outlined in the European
Commission’s Sustainable Finance Platform report Final Report on Minimum Safeguards (2022). Although human rights
protection is ensured in the Group’s operations and no violations were recorded in 2024, it was identified that certain
measures are not yet fully implemented. For example, supplier and subcontractor contracts lack explicit commitments to
human rights compliance, and such agreements are typically discussed during negotiations but are not formally
documented.
For this reason, the Group has assessed that it currently does not meet the Minimum Safeguards requirement and,
therefore, does not have any activities that can be considered taxonomy-aligned at this stage. However, the Group plans
to strengthen this area in the future by implementing additional measures to ensure compliance.
As the Group’s activities currently do not meet some of the Taxonomy criteria or lack the necessary supporting evidence,
more detailed information on activity alignment is not provided at this time.
The assessment results are presented below using the templates defined in the EU Taxonomy.
Table 1B. 2024 Turnover Under the Taxonomy
2024
financial
year
2024
Substantial contribution criteria
DNSH criteria ('Does Not
Significantly Harm')
Economic
activities
Code(s)
Absolute turnover
Proportion of turnover year
2024
Climate change mitigation
Climate change adaptation
Water and marine resources
Pollution
Circular economy
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Pollution
Circular economy
Biodiversity and ecosystems
Minimum safeguards
Proportion of Taxonomy
-aligned
(A.1.)
or -eligible (A.2.) turnover year 2023
Category (enabling activity)
Category (transitional activity)
Text
Thousa
nd Eur
%
Y; N;
N/EL
Y;
N;
N/E
L
Y;
N;
N/E
L
Y;
N;
N/E
L
Y; N;
N/EL
Y;
N;
N/E
L
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1 Environmental sustainable activities (Taxonomy-aligned)
None
-
0
0 %
-
-
-
-
-
-
-
-
-
-
-
-
-
0 %
-
-
Turnover of
environmentally
sustainable
activities
(Taxonomy-
aligned) (A.1)
0
0 %
-
-
-
-
-
-
-
-
-
-
-
-
-
0 %
Of which
enabling
0
0 %
-
-
-
-
-
-
-
-
-
-
-
-
-
0 %
-
Of which
transitional
0
0 %
-
-
-
-
-
-
-
-
0 %
-
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A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/E
L
EL;
N/E
L
EL;
N/E
L
EL;
N/EL
EL;
N/E
L
Construct
ion of
new
buildings
CC
M
7.1
CE
3.1
58 978
58.58
%
EL
N/E
L
N/E
L
N/E
L
N/EL
N/E
L
68.14
%
Acquisiti
on and
ownershi
p of
buildings
CC
M
7.7
2 387
2.37
%
EL
N/E
L
N/E
L
N/E
L
N/EL
N/E
L
2.41
%
Renovati
on of
existing
buildings
CC
M
7.2
CE
3.2
9 446
9.38
%
EL
N/E
L
N/E
L
N/E
L
N/EL
N/E
L
6.13
%
Turnover of
Taxonomy-eligible
but not
environmentally
sustainable
activities (not
Taxonomy-aligned
activities) (A.2)
70 810
70.33
%
70.33
%
0 %
0 %
0 %
67.96
%
0 %
76.67
%
Turnover of
Taxonomy-
eligible
activities
(A.1+A.2)
70 810
70.33
%
70.33
%
0 %
0 %
0 %
67.96
%
0 %
76.67
%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of
Taxonomy-non-
eligible
activities
29 868
29.67
%
TOTAL (A+B)
100 678
100.0
0%
Explanation of Abbreviations:
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective.
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective.
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
EL – Taxonomy-eligible activity for the relevant objective
Note: Due to changes in the indicator calculation methodology in 2024, no retrospective recalculation of the 2023 indicators was performed. Therefore,
when comparing the indicators between these periods, it is important to take into account the differences in methodology.
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85
Table 2B. 2024 Capital Expenditures (CapEx) Under the Taxonomy
2024
financial
year
2024
Substantial contribution criteria
DNSH criteria ('Does Not
Significantly Harm')
Economic activities
Code(s)
CapEx
Proportion of CapEx year
2024
Climate change mitigation
Climate change adaptation
Water and marine resources
Pollution
Circular economy
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Pollution
Circular economy
Biodiversity and ecosystems
Minimum safeguards
Proportion of Taxonomy
-aligned
(A.1.) or eligible (A.2.) CapEx year
2023
Category (enabling activity)
Category (transitional
activity)
Text
Thousa
nd Eur
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y;
N;
N/E
L
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1 Environmental sustainable activities (Taxonomy-aligned)
None
-
0
0 %
-
-
-
-
-
-
-
-
-
-
-
-
-
0 %
-
-
Turnover of
environmentally
sustainable
activities
(Taxonomy-aligned)
(A.1)
0
0 %
-
-
-
-
-
-
-
-
-
-
-
-
-
0 %
Of which
enabling
0
0 %
-
-
-
-
-
-
-
-
-
-
-
-
-
0 %
-
Of which
transitional
0
0 %
-
-
-
-
-
-
-
-
0 %
-
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/E
L
EL;
N/E
L
EL;
N/E
L
E
L;
N/
E
L
EL;
N/E
L
Constructi
on of new
buildings
CC
M
7.1
CE
3.1
265
17.17
%
EL
N/EL
N/EL
N/EL
N/EL
N/E
L
52.75
%
Acquisitio
n and
ownership
of
buildings
CC
M
7.7
754
48.84
%
EL
N/EL
N/EL
N/EL
N/EL
N/E
L
0.92
%
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Renovatio
n of
existing
buildings
CC
M
7.2
CE
3.2
41
2.65%
EL
N/EL
N/EL
N/EL
N/EL
N/E
L
2.34
%
Installation
,
maintenan
ce, and
repair of
renewable
energy
technologi
es
CC
M
7.6
159
10.32
%
EL
N/EL
N/EL
N/EL
N/EL
N/E
L
10.32
%
CapEx of
Taxonomy-eligible
but not
environmentally
sustainable
activities (not
Taxonomy-aligned
activities) (A.2)
1 219
78.98
%
78.98
%
0 %
0 %
0 %
19.82
%
0 %
91.04
%
CapEx of
Taxonomy-
eligible activities
(A.1+A.2)
1 219
78.98
%
78.98
%
0 %
0 %
0 %
19.82
%
0 %
91.04
%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of
Taxonomy-non-
eligible activities
324
21.02
%
TOTAL (A+B)
1 543
100 %
Explanation of Abbreviations:
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective.
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective.
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
EL – Taxonomy-eligible activity for the relevant objective
Note: Due to changes in the indicator calculation methodology in 2024, no retrospective recalculation of the 2023 indicators was performed. Therefore,
when comparing the indicators between these periods, it is important to take into account the differences in methodology.
Table 3B. 2024 Operating Expenses (OpEx) Under the Taxonomy
2024
financial
year
2024
Substantial contribution criteria
DNSH criteria ('Does Not
Significantly Harm')
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87
Economic activities
Code(s)
OpEx
Proportion of OpEx year 2024
Climate
change mitigation
Climate change adaptation
Water and marine resources
Pollution
Circular economy
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Pollution
Circular economy
Biodiversity and
ecosystems
Minimum safeguards
Proportion of Taxonomy
-aligned (A.1.)
or -eligible (A.2.) OpEx year 2023
Category (enabling activity)
Category (transitional activity)
Text
Thousa
nd Eur
%
Y; N;
N/EL
Y;
N;
N/E
L
Y;
N;
N/E
L
Y;
N;
N/E
L
Y; N;
N/EL
Y;
N;
N/E
L
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1 Environmental sustainable activities (Taxonomy-aligned)
None
-
0
0 %
-
-
-
-
-
-
-
-
-
-
-
-
-
0 %
-
-
OpEx of
environmentally
sustainable
activities
(Taxonomy-aligned)
(A.1)
0
0 %
-
-
-
-
-
-
-
-
-
-
-
-
-
0 %
Of which
enabling
0
0 %
-
-
-
-
-
-
-
-
-
-
-
-
-
0 %
-
Of which
transitional
0
0 %
-
-
-
-
-
-
-
-
0 %
-
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/E
L
EL;
N/E
L
EL;
N/E
L
EL;
N/EL
EL;
N/E
L
Constructi
on of new
buildings
CC
M
7.1
CE
3.1
2 201
45.49
%
EL
N/E
L
N/E
L
N/E
L
N/EL
N/E
L
68.10%
Acquisitio
n and
ownership
of
buildings
CC
M
7.7
54
1.11%
EL
N/E
L
N/E
L
N/E
L
N/EL
N/E
L
2.40%
Renovatio
n of
existing
buildings
CC
M
7.2
CE
3.2
330
6.82
%
EL
N/E
L
N/E
L
N/E
L
N/EL
N/E
L
6.10%
Installatio
n,
maintenan
ce, and
repair of
renewable
energy
technologi
es
CC
M
7.6
0.2
0.003
%
EL
N/E
L
N/E
L
N/E
L
N/EL
N/E
L
0 %
Transport
by
motorbike
s,
passenger
cars, and
CC
M
6.5
141
2.91
%
EL
N/E
L
N/E
L
N/E
L
N/EL
N/E
L
0 %
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light
commerci
al vehicles
OpEx of Taxonomy-
eligible but not
environmentally
sustainable
activities (not
Taxonomy-aligned
activities) (A.2)
2 725
56.33
%
56.33
%
0 %
0 %
0 %
52.31
%
0 %
76.60%
OpEx of
Taxonomy-
eligible activities
(A.1+A.2)
2 725
56.33
%
56.33
%
0 %
0 %
0 %
52.31
%
0 %
76.60%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEX of
Taxonomy-non-
eligible activities
2 113
43.67
%
TOTAL (A+B)
4 838
100%
Explanation of Abbreviations:
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective.
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective.
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
EL – Taxonomy-eligible activity for the relevant objective
Note: Due to changes in the indicator calculation methodology in 2024, no retrospective recalculation of the 2023 indicators was performed. Therefore,
when comparing the indicators between these periods, it is important to take into account the differences in methodology.
Activities Related to Nuclear Energy and Fossil Gas
Template 1. Activities Related to Nuclear Energy and Fossil Gas
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration, and deployment of innovative
electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
2
The undertaking carries out, funds, or has exposure to construction and safe operation of new nuclear installations to produce
electricity or process heat. This includes for the purposes of district heating or industrial processes such as hydrogen production, as
well as their safety upgrades, using the best available technologies.
NO
3
The undertaking carries out, funds, or has exposure to safe operation of existing nuclear installations that produce electricity or
process heat. This includes for the purposes of district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
NO
Fossil gas related activities
4
The undertaking carries out, funds, or has exposure to construction or operation of electricity generation facilities that produce
electricity using fossil gaseous fuels.
NO
5
The undertaking carries out, funds, or has exposure to construction, refurbishment, and the operation of combined heat/cool and
power generation facilities using fossil gaseous fuels.
NO
6
The undertaking carries out, funds, or has exposure to construction, refurbishment, and the operation of heat generation facilities
that produce heat/cool using fossil gaseous fuels.
NO
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5.3. Social area
5.3.1. Social impacts, risks and opportunities
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
Own workforce
Material actual and potential negative impacts related to employees arise in the Group's direct operations and are related
to its business model.
The Group operates in the construction sector, where workers are exposed to higher risks of accidents, injuries, and
occupational diseases. In this context, the Group continuously assesses, monitors, and effectively manages health and
safety (H&S) related exposures, as well as risks and opportunities to ensure a safe working environment and the highest
health and safety standards.
Training and development of employees, as well as general and specific skills, are integral to operational health and safety
(OHS), well-being, and service quality. It is also a key factor in the smooth organisation of the Group's operations and in
strengthening competitiveness. Group companies consistently invest in employee development and professional growth,
thereby strengthening both the organisation's internal capabilities and its long-term market advantage.
Additional employee-related risks are related to ensuring diversity, equality, and inclusion and creating an internal culture
of sustainability. The Group recognises that both of these topics are of particular importance to stakeholders and therefore
actively manages the risks associated with them, while seeking to exploit opportunities that arise from responsible
implementation of related initiatives.
Value chain workers
The Group recognises that its business model may have an impact on employees in the value chain. Material direct impacts
may arise for subcontractors who work directly on construction projects as operating partners. Subcontractors are subject
to the same environmental and occupational health and safety policies, along with specific requirements as the Group's
direct employees.
Indirect negative impacts may occur for upstream workers, including suppliers of construction raw materials and materials
(in non-EU countries). Currently, the Group's strategy and business model do not include impact management upstream in
the value chain, which is planned to be strengthened in the future.
Affected communities
Construction activities may cause some temporary inconvenience to local communities (noise, dust, dirt). Although no
material direct impacts have been identified, these factors are a normal part of the construction process, which the Group
manages responsibly through ongoing preventive measures and environmental solutions. The management of these
impacts is described in more detail in section E2 Pollution.
Potential risks include community protests, which could delay the project and negatively affect the company's reputation.
Subsequent negative media coverage could also undermine trust in the company. The Group responds promptly to
community complaints, communicates proactively, and applies mitigation measures within its sphere of influence. The
possibility of encouraging voluntary initiatives by employees to contribute to the well-being of the communities and to
strengthen corporate social responsibility is also being considered.
Consumers and end-users
In the construction sector, the quality of services and buildings has a direct impact on the safety, health, and sustainability
of the end users. Poor quality of work or products can lead to safety risks and additional operating and after-sales service
costs. These elements would have a negative impact not only on the end users but also on the Group itself through higher
financial costs and reputational risks.
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The Group manages these aspects through rigorous quality assurance measures and in accordance with established
standards. Although the strategy does not currently include the active development of sustainable solutions, this is seen as
a potential opportunity that could contribute in the future to increasing competitiveness, improving reputation, and offering
a wider range of services to customers.
The financial impact of social sustainability topics
During the reporting period, social risks and opportunities did not have a material impact on the Group's financial position,
results of operations, or cash flows. Nor have any risks or opportunities been identified that would result in a material change
in the carrying amounts of the Group's assets or liabilities in the foreseeable future.
On social sustainability matters, the resilience of the Group's operations was assessed to the extent that it was included in
the double materiality assessment. This assessment was carried out for the first time in 2024, so there were no significant
changes compared to the previous reporting period. The results of the Group's double materiality assessment are planned
to be reviewed annually, and therefore, the material topics and sub-topics identified may change in the future.
5.3.2. S1 Own workforce
Group companies follow the following key policies to manage the impacts, risks, and opportunities related to their own
employees:
• Occupational health and safety policy.
• Violence and harassment prevention policy.
• Measures to implement equal opportunities policy.
• Privacy policy.
• Group values policy.
PST Group has developed these policy guidelines, and the
Group companies implement and adapt them according to their
individual needs, taking into account the specificities of their
operations. The implementation and transparency of these
policies are continuously monitored, with the Company's internal
auditors assessing not only the development of the policies but
also their public availability within the organisation.
In the future, a unified Group Sustainability Policy is planned to be developed, which will cover the most important parts of
the ESRS standard and will further reinforce the Group's commitment to responsible and sustainable operations.
Employee safety and wellbeing
The Group pays particular attention to a safe working environment, making safety one of its highest priorities. One of its
main objectives is to become a leader in the construction market, guaranteeing safe workplaces for all employees. The
Group implements an Occupational Health and Safety Policy and has implemented the international OHS management
system standard ISO 45001, following the relevant procedures of the standard:
• Enforcing legal and other requirements for environmental protection, occupational health and safety.
• Emergency preparedness and response.
• Monitoring and measurement.
• Managing occupational health and safety.
• Identification and risk assessment of occupational hazards.
• Managing goals, objectives, and management programmes.
• Design management.
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91
• Buying and selling.
• Selecting subcontractors.
The procedures listed above help to ensure the continuous identification and assessment of OHS risks, the definition of risk
management measures, and the monitoring of their implementation.
The Group has an Occupational Health and Safety Committee (OHSC) where employees participate in OHS decisions.
Health and safety objectives. PST indicators
Notes: *The 2024 target was set for own employees only, while the 2025 target covers both own employees and subcontractors included. The 2025 target
is for subcontractors and subcontractors to be self-employed (self-employed).
**Although the initial target for 2024 was to reduce the number of registered PHIs, practice has shown that it is more important to encourage increased
registration. The Group has therefore updated the target to increase the number of recorded PHIs, as this reflects the growing awareness of employees
and the strengthening of the OHS culture. Training employees to recognise and record hazardous situations is the first step, and a natural decrease in the
number of PHIs is expected over time as the OHS culture improves.
Methodology for calculating DSS indicators:
• TRIR: calculated according to the same formula as in the ESRS Standard S1-14 disclosure requirement for the
rate of recordable work-related accidents per million hours worked.
• Number of PHIs: potential hazardous events (situations) in the workplace as recorded by the HSS officer and other
OHS managers using the EINPIX platform. In the EINPIX platform, the OHS officer generates a report according
to the selected category and time interval.
• Completion of PHI measures refers to measures taken to eliminate dangerous situations. In 2024, not all the
measures implemented were recorded in the programme, resulting in a score of 85%, but all the measures were
implemented. From now on, controls will be documented.
Accidents
In 2024, the Group recorded two occupational accidents, one of which was minor, and the other was considered major, as
the worker suffered a serious impairment of health. Medical assistance was immediately provided, and the necessary
support, including financial compensation for loss of earnings, was ensured.
The company has carried out a thorough investigation into the incident to determine the causes and to prevent similar
situations in the future. It was found that certain factors in the working environment may have contributed to the incident,
and additional safety measures were implemented:
• Workplaces have been audited, and factors that may pose a risk of injury have been eliminated.
Scope of
application
Aims and objectives
2024 target
2024 result
2025 target
Group
Number of recordable accidents (RA) at work
0
2
0
Total Recordable Incident Rate (TRIR)
0
1.78
< 1.6*
Number of potential hazardous incidents/situations (PHI)
-10%
(2023 result: 79)
173
+10 %**
Completion of PHI measures
100 %
85 %
100 %
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• Additional employee training to reinforce safe behaviour skills.
• Continuous monitoring of the working environment and regular safety inspections have been reinforced.
As a result of these preventive actions, no further accidents were reported in the Group's companies during 2024.
OHS training
A key focus is on OHS training, which is an integral part of the Group's OHS policy. To ensure the training is effective and
efficient, the Group has implemented the ISO 45001 procedure "Employee Training," and the procedure for organising
training is detailed within the Group’s internal documentation.
The Group takes responsibility for developing the skills of its employees and consistently invests time and resources in
organising and implementing training and education programmes.
Training is carried out in three main areas:
• Improving existing professional competencies.
• Developing safe behaviour and professional skills.
• Leadership and motivation (building a culture of sustainability and safe behaviour).
In order to continuously improve the competencies of its employees in the area of OHS, the Group organised both internal
training and external training at training institutions throughout 2024.
The in-house training programme includes:
• Theoretical training - covers the basics of OHS, legal requirements, as well as company policies and procedures.
The focus is on hazard identification, principles of safe behaviour, the use of personal protective equipment, and
accident prevention.
• Hands-on training - focusing on specific hazards and activities, including fire and civil protection, use of chemicals
and high-risk work. It also includes evacuation plan
training and first aid drills.
• Periodic knowledge checks and practical training -
designed to refresh and consolidate employees'
knowledge and skills in real or simulated situations.
External training is divided into formal training (approved
vocational training programmes) and informal training
(programmes tailored to the needs of the enterprise by
training institutions).
The Company's managers and OHS specialists are
responsible for maintaining the quality of training and
regularly updating the programmes to reflect the latest
hazards and legal requirements. This is to ensure that every
employee is well prepared for their duties and works in a safe
environment.
Actions
The Group consistently implements health, safety, and well-being measures. Regular OHS training is organised, safety
equipment is continuously installed and updated, and systems for investigating and preventing incidents and dangerous
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situations are strengthened. Regular OHS inspections are carried out to identify and eliminate potential hazards at an early
stage.
Employees' psychological well-being is also a priority, with a range of initiatives to reduce stress and improve the
work/leisure balance. Employees receive psychological support, wellness initiatives, health screening, and preventive
healthcare programmes.
Reporting channel
The Group enables workers to report possible violations of their rights and well-being safely. Reports can be made
anonymously or directly through the following channels:
• Directly to the manager or through employee representatives (Works Council, OHS Committee).
• Electronically via the OHS platform SAUGA.lt, using the "Notification Module".
• Anonymously via a dedicated messaging channel:
• E-mail: skundai@pst.lt
• Telephone +370 616 23545
• On arrival at the Company's headquarters (P. Puzino g. 1, Panevėžys).
The Group encourages employees to contribute to a safe working environment actively and ensures that all reports are
dealt with confidentially and impartially.
Employee training and development
The Group consistently invests in employee training and development, which significantly impacts employee wellbeing and
motivation, as well as on service quality and customer satisfaction. Employee development and the enhancement of
specialised and generic skills are key to the smooth operation of the Group's businesses and its long-term competitiveness.
Employee development plans are drawn up annually, taking into account the Group's strategic objectives and the
competencies needed to achieve them. Employees can improve their knowledge through various training courses, seminars
and conferences, along with internal training tailored to specific job requirements. Training programmes are continuously
improved to meet market needs and service quality standards.
• To strengthen employee safety and preventive measures, the Group introduced a process
in 2024 for recording incidents and potentially hazardous occurrences through the electronic
platforms SAUGA.lt and EINPIX. These systems allow risks to be identified and addressed
promptly, thus contributing to a safer working environment.
• In addition, the identification and recording of potentially dangerous situations has increased
thanks to regular training to promote a culture of safe behaviour among managers and
workers. This has enabled hazardous situations to be detected and eliminated quickly,
preventing potential workplace accidents.
Actions implemented in 2024
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In the near future, the Group plans to develop an internal training platform that will enable employees to keep their
knowledge up to date. This is expected to lead to a higher quality of service, higher customer satisfaction, and a stronger
corporate reputation.
Equality, diversity and inclusion
The Group strongly emphasises diversity, equality, and inclusion, aiming to create a working environment that considers
the views and expectations of different stakeholders. While no significant impact on employees has been identified in this
area, the Group has identified risks related to its business model's sustainability, reputation, and growing expectations for
equal opportunities. The Group is, therefore, consistently monitoring the situation and taking action to ensure that diversity
and inclusion matters are properly managed.
The Group does not discriminate based on gender and
assesses employees based on their qualifications, providing
equal employment and career opportunities. Every employee's
opinions and ideas are heard and valued to promote inclusion.
There were no cases of discrimination in 2024.
The Group has the following policies:
• Violence and harassment prevention policy.
• Measures to implement and enforce equal opportunities
policy.
The Group's companies comply with the anti-discrimination
requirements set out in Article 26 of the Labour Law and the
principles set out in the "Violence and Harassment Prevention
Policy". A separate Equal Opportunities, Inclusion and Diversity
Policy is planned for 2025, which will set out in more detail the
principles for preventing discrimination.
Workers' rights and involvement
• Ongoing training programmes have enabled employees to acquire new knowledge and skills
to work more efficiently and promote innovation. During the year, 12 specialised training
courses (internal and external) were organised, involving 489 employees.
• The company funded external refresher courses for 53 employees.
• To address the risk of skills shortages, in 2024, the Group launched the SAUGA.lt e-learning
platform. In the first phase, 504 employees received training on fire and civil safety, as well
as violence and harassment prevention.
• Competency assessment to identify individual learning needs.
Actions implemented in 2024
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The Group ensures workers' representation in the Works Council and the OHS Committee, where matters related to working
conditions are discussed. Employee surveys on job satisfaction, motivation, safety, and other relevant topics are carried
out regularly to understand employees' expectations better and to improve the organisational environment.
Creating an internal culture of sustainability
The Group is taking the first steps on the road to sustainability by strengthening its internal culture. The double materiality
assessment carried out in 2024, and the appointment of a Sustainability Manager marks a new phase, launching key
initiatives to engage employees and raise awareness. While no material impact on employees has been identified in this
area, the Group recognises the long-term risks associated with stakeholder expectations and is consistently integrating
sustainability principles into its operations. The aim is to create an enabling environment for new ideas and sustainable
solutions through clear communication and responsibility principles.
To achieve this, the Group plans to implement sustainability culture initiatives to promote employee awareness and active
participation in the sustainability objectives. The Group defines sustainability initiatives as a range of educational, sporting,
environmental management, and team-building initiatives related to the promotion of environmental and social engagement
and awareness among employees.
5.3.3. Social indicators
S1-6 – Characteristics of the undertaking’s employees
Employee breakdown by gender
• Measure current levels of employee satisfaction and identify key
areas for improvement (employee satisfaction/engagement survey).
• Provide at least one training session on employee diversity, equality,
and inclusion.
• Provide employees with at least two yearly training sessions to
achieve the Sustainability Objectives.
• Achieve at least 70% of employees participating in sustainability
training and/or at least one sustainability initiative annually.
Targets by 2027
Targets by 2027
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In 2024, as in the past, the majority of the Group's employees were male - 85% (PST Group AB - 83%), which reflects the
nature of the construction sector. Due to the nature of their activities, females are less likely to choose technological and
construction engineering jobs, as well as positions requiring outdoor work.
Gender
Number of employees*
2024
PST Group AB
Group
Male
334
537
Female
68
92
Other
0
0
No data available
0
0
Total:
Hired employees**
402
629
Notes: * Actual number of employees (headcount) that are hired on employment contracts at the end of the reporting period (31.12.2024), without taking
into account the full time equivalent.
The number of employees in the Management Report is set out in "PST GROUP AB 2024 Corporate and Consolidated
Management Report, Management Report and Sustainability Report", point 1.9.
Employee breakdown by gender and by employment contract
2024
Number of employees
FEMALE
MALE
OTHER (*)
NOT
DISCLOSED
TOTAL
Number of employees
PST Group AB
68
334
0
0
402
Group
92
537
0
0
629
Number of permanent employees
PST Group AB
67
320
0
0
387
Group
90
518
0
0
608
Number of temporary employees
PST Group AB
1
14
0
0
15
Group
2
19
0
0
21
Number of non-guaranteed hours
employees
Group
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Notes: Actual number of employees hired on employment contracts at the end of the reference period (31.12.2024), without taking into account the head
count.
* "Other" does not apply as it is not legally possible to register as a third gender in Lithuania.
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Employee turnover
PST Group AB
Group
Employees who resigned or
were made redundant*
Employee turnover rate, %**
Employees who resigned or
were made redundant*
Employee turnover rate, %**
2024
114
28%
225
36%
* The aggregate of the number of employees who left voluntarily or due to dismissal, retirement, or death in service (by number of employees).
** Number of employees who left divided by the total number of employees x 100.
S1-9 – Diversity metrics
Gender Distribution at the Top Management Level
Gender distribution at top management level
2024
PST Group AB
Group
Number of employees
Employee share, % of
employees
Number of employees
Employee share, % of
employees
Male
7
100 %
17
94 %
Female
0
0 %
1
6 %
Total
7
100 %
18
100 %
Note: Definition of senior management: CEO and functional directors.
Distribution of employees by age group
2024
PST Group AB
Group
Number of employees
Percentage of total
employees
Number of employees
Percentage of total
employees
Under 30 Years Old
23
6 %
48
8 %
30-50 Years Old
195
49 %
315
50 %
Over 50 Years Old
184
46 %
266
42 %
Total
402
100 %
629
100 %
S1-10 – Adequate wages
The Group ensures that all its employees are paid a fair wage in accordance with the legislation applicable to the Group.
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S1-11 – Social protection
All employees of the Group are covered by social security through public social protection programmes in the following
cases:
• In case of sickness, workers receive social security benefits.
• In the case of unemployment, the national unemployment insurance scheme.
• In the event of an accident at work or acquired disability, employees are covered by social security in accordance
with the legislation in force.
• In the case of parental leave, workers receive state social benefits for the period of parental leave.
• In the event of retirement, employees participate in a state pension scheme.
S1-13 – Training and skills development metrics
Average number of training hours per employee by gender
2024
PST Group AB
Group
Average number of training hours per employee
Average number of training hours per employee
Total, out of which:
5.36
4.61
Male
5.7
n/a*
Female
3.7
n/a*
*Data not available.
S1-14 – Health and safety metrics
The principles and guidelines of the ISO 45001:2018 OHS management system are applied 100%. OHS standards are
applied to all employees of the Group's companies.
Health and safety indicators
2024
Employees of the company:
Number of deaths due to work-related injuries and work-related ill health
0
Number of work-related accidents to be recorded
2
Total annual hours worked by all employees
1 121 105
Recordable work-related accident rate
1.78
Number of recordable work-related health problems
0
Number of working days lost due to work-related injuries and deaths due to accidents at work, work-related health
disorders, and deaths due to health disorders
19
Non-employees classified as own workforce:
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Number of deaths due to work-related injuries and work-related ill-health among non-employees working at the
company's sites
0
S1-17 – Incidents, complaints and severe human rights impacts
In 2024, the Group did not receive any complaints or record any incidents of discrimination or other serious violations of
human rights.
5.3.4. S2 Workers in the value chain
The Group ensures that all employees working on construction projects, regardless of their employment relationship with
the Group company, are protected by the highest occupational health and safety standards. Subcontractors are subject to
the same OHS policies and requirements as the Group's direct employees, including:
• ISO 45001 compliance, ensuring compliance with occupational health and safety standards.
• Mandatory OHS training for both direct employees and subcontractors.
• Regular safety inspections of construction sites to reduce the risk of
accidents and occupational diseases.
• Regular audits and unscheduled inspections (at least 6 per quarter).
Value chain employees can raise concerns and complaints through the Group's
reporting channel, skundai@pst.lt (and other reporting channels as disclosed
under ESRS Requirement G1-1 in the Business Ethics section of ESRS G1-1).
The Group works directly with subcontractors and actively monitors their
compliance with OHS and social responsibility standards. In cases of non-
compliance, contractual relations may be reviewed or terminated.
For other workers in the supply chain (e.g. suppliers of building materials), there
are currently no specific policies or actions. While no actual negative impacts have
been identified at this stage, and no related reports or complaints have been
received, the Group recognises the potential of sector-specific social impacts
related to working conditions in supply chains, especially in the original countries
of origin of raw materials outside the EU. It is therefore planned to assess possible
future policies and actions in this area.
5.3.5. S3 Affected communities
The identified negative impacts on communities are related to pollution, the management of which is detailed in section E2
Pollution. The Group does not currently have any additional policies, action plans, or targets to manage risks and
opportunities.
5.3.6. S4 Consumers and end-users
The Group sets clear quality standards for its products and services, which are defined in its Quality Policy. These
requirements are reviewed and updated annually to ensure that they meet the needs of the business, customers, and the
market.
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The Group ensures that all projects implemented meet high-quality
standards in accordance with LST EN ISO 9001:2015. The quality
management system includes clear processes, supervision, and
regular audit assessments by an independent certification
company.
Quality is directly linked to the Group's competitiveness, customer
satisfaction, and financial performance. Poor quality of buildings
can lead to safety risks for users, warranty costs, and legal
disputes. Therefore, the Group strictly monitors the supply of
materials, carries out systematic quality control, and continuously
analyses customer feedback.
To ensure the safety of buildings, the Group applies after-sales
service mechanisms, regular safety inspections, and supply chain
assessments. The Group's priority is consistent quality control,
transparency of construction processes, and clear standards to
ensure the safety of both clients and end-users.
5.4. Governance area
5.4.1. G1 Business ethics
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
One of the Group's sustainability topics in the Governance area is sustainability in the supply chain. In the construction
sector, where supply chains for raw materials and supplies can be long and involve countries outside the EU, indirect
impacts on the environment and people can occur in the early stages of the supply chain. The Group's strategy and business
model do not currently include the direct assessment and management of these impacts, but the Group sees opportunities
to strengthen this area in the future. Integrating sustainability principles into the supply chain can help improve the Group's
reputation, competitiveness, and resilience to supply chain risks.
Corporate culture and preventing corruption and bribery are other key areas of the Group's governance. Although no
significant direct impact has been identified in this area, the risks of corruption and non-compliance with the law remain
relevant and require continuous monitoring. Any breach of compliance obligations or corruption could result in severe
reputational damage, financial sanctions, or disruption to the Group's operations. At the same time, responsible and
transparent business practices open up opportunities to strengthen the Group's image, while increasing trust among
potential customers and driving favourable attitudes among key stakeholders.
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G1-1 – Business conduct policies and corporate culture
Business ethics is an integral part of the Group's business activities. The Group strives to create and foster a culture of
ethical business, to prevent corruption and bribery, and to compete fairly. The Group's position and broader approach to
business ethics is declared in the PST Group's Code of Conduct for Employees, Suppliers and Company Representatives,
which is made publicly available and accessible to all interested parties.
The Group actively develops and promotes a performance culture based on transparency, business ethics, and employee
welfare. Management regularly reviews aspects of the Group's culture and ensures that the ethics policy is implemented in
practice.
Managers actively contribute to strengthening the culture by promoting employee engagement and responsibility. The
Group supports ethical behaviour through training, incentive programmes, and social responsibility initiatives. Employees
are given the opportunity to anonymously report possible violations, ensuring their protection.
In the future, the Group intends to further strengthen its corporate culture by introducing new solutions and improving
employee engagement mechanisms.
Whistleblowing channel and whistleblower protection
The Group has an internal and external whistleblowing system in place to identify, report, and investigate illegal conduct or
breaches of business ethics. This system allows employees, suppliers, and other stakeholders to anonymously report:
• Bribery and corrupt practices.
• Unfair treatment of suppliers and customers.
• Violations of the Code of Ethics.
• Other breaches of business ethics.
Reporting channels:
• E-mail address skundai@pst.lt
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• Phone number: +370 616 23545
• Directly contacting the management or the managers responsible.
• On arrival at the Group's headquarters (P. Puzino g. 1, Panevėžys).
• An anonymous internal messaging platform.
Whistleblower reports are received, registered, investigated, while whistleblower protection measures are ensured in
accordance with the requirements of the Law on Whistleblower Protection. The Group does not tolerate any discrimination
or negative impact on persons who have provided information on possible violations.
All notifications are reviewed by a specially designated responsible official. Procedures for the prompt, independent, and
impartial handling of whistleblowing are set out in PST's Whistleblowing Procedures and Procedures Manual. Where
irregularities are identified, appropriate corrective measures are implemented. The Group continuously reviews and
improves these measures to ensure the highest standards of business conduct.
The Group does not have a specific adopted policy on business ethics training and training can be arranged for staff as
required. All employees (100%) are provided with a signed copy of the whistleblowing and whistleblowing procedure.
Anti-corruption policy
PST Group and its subsidiaries do not tolerate any form of corruption and its manifestations are committed to transparent
operations, fair competition, and ethical business conditions. The Group is committed to conducting its business with the
highest standards of transparency and openness.
The Group does not have an anti-corruption or anti-bribery policy in line with the United Nations (UN) Convention against
Corruption. Still, it plans to incorporate the provisions of this Convention into the overall Sustainability Policy under
development.
The Group does not tolerate fraud, extortion, informal accounting, illegal and improperly documented transactions, fictitious
expense accounting, use of false documents, and other forms of corruption. The anti-corruption provisions apply to all
employees of the Group, members of the management and supervisory bodies, and third parties acting on behalf of the
Group.
Corruption risks are mitigated by effective internal control mechanisms to identify potential threats. Group companies
continuously monitor and improve processes to ensure transparency. The Group does not engage in political influence
activities or finance political parties, nor their representatives, candidates, or election campaigns.
The Group always cooperates with the relevant authorities and is ready to provide all necessary information.
No significant breaches of legislation were recorded in 2024 and no fines were imposed for non-compliance. The Group
complies with all legal and regulatory requirements.
The Group has not identified any specific posts that could be at higher risk of corruption and bribery.
G1-2 – Management of relationships with suppliers
PST Group and its subsidiaries shall ensure that all procurement is carried out in accordance with the principles of equality,
non-discrimination, transparency, mutual recognition, proportionality, confidentiality, and impartiality. Procurement is also
carried out in accordance with the principles for the rational use of funds. Suppliers shall be selected on the basis of the
most economically advantageous tender or the lowest price criterion, with equal and non-discriminatory treatment of all
suppliers. In the process of selecting subcontractors, the Group assesses their qualifications, paying particular attention to
compliance with environmental and occupational health and safety legislation, together with the integrity of the
subcontractors themselves.
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The Group aims to pay all suppliers on time, in accordance with the
agreements, without discrimination against small and medium-sized
enterprises (SMEs).
The Group manages its relationships with suppliers to ensure transparency
and responsible business practices throughout the supply chain. Currently,
social, environmental, and business ethics criteria are not applied to the
selection and monitoring of suppliers. The Group plans to strengthen this
area by obliging suppliers to comply with established ethical standards and
by collecting information from suppliers on compliance with environmental
and social criteria. These first steps will form the basis for future impact
management challenges in the supply chain.
G1-4 – Incidents of corruption or bribery
During the reporting period, there were no cases of corruption or bribery in the Group. The Group did not receive any
convictions for breaches of anti-corruption or anti-bribery laws.
G1-6 – Payment practices
The Group aims to make payments to suppliers on the due dates, but the actual timing of payments may vary due to various
circumstances, such as settlements with final customers or additional, sometimes informal, arrangements. The Group does
not discriminate against suppliers, including small and medium-sized enterprises (SMEs).
There are no standard payment terms with suppliers; they can range from advance payments to up to 90 days from the
date of receipt of the invoice for construction work carried out. The Group's objective is to align payment terms as closely
as possible with those that are appropriate for buyers and suppliers.
There are currently no pending court cases related to late payments.
• Develop a Supplier Code of Conduct, integrating a supplier questionnaire on
environmental and social matters. Ensure that at least 50% of suppliers and/or
subcontractors declare compliance with the Code and submit completed
questionnaires.
Target by 2027
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5.5. Indices
5.5.1. ESRS disclosed indicators
Disclosure Requirement
Page
1. Basis for preparation
BP-1
General basis for preparation of sustainability statements
46
BP-2
Entities included in the organisation's sustainability reporting
46
2. Governance
GOV-1
The role of the administrative, management and supervisory bodies
47
GOV-2
Information provided to and sustainability matters addressed by the undertaking’s administrative,
management and supervisory bodies
48
GOV-3
Integration of sustainability-related performance in incentive schemes
48
GOV-4
Statement on due diligence
48
GOV-5
Risk management and internal controls over sustainability reporting
48
3. Strategy
SBM-1
Strategy, business model and value chain
49
SBM-2
Interests and views of stakeholders
52
SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
55
4. Impact, risk and opportunity management
4.1 Disclosures on the materiality assessment process
IRO-1
Description of the process to identify and assess material impacts, risks and pportunities"
59
IRO-2
Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement
62
4.2 Minimum disclosure requirement on policies and actions
Policies MDR-P
Policies adopted to manage material sustainability matters
69
Actions MDR-A
Actions and resources in relation to material sustainability matters
62
5. Metrics and targets
Metrics MDR-M
Metrics in relation to material sustainability matters
62
Targets MDR-T
Tracking effectiveness of policies and actions through targets
62
Applicable ESRS Sector
Not available
ESRS 2 General Disclosures
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Environmental topics
ESRS E1 Climate Change
Governance
E1 ESRS 2 GOV-3
Integration of sustainability-related performance in incentive schemes
48
Strategy
E1-1
Transition plan for climate change mitigation
70
E1 ESRS 2 SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
68
Impact, risk and opportunity management
E1 ESRS 2 IRO-1
Description of the processes to identify and assess material climate-related impacts, risks and
opportunities
59
E1-2 (MDR-P)
Policies related to climate change mitigation and adaptation
69
E1-3 (MDR-A)
Actions and resources in relation to climate change policies
70
Metrics and targets
E1-4 (MDR-T)
Targets related to climate change mitigation and adaptation
71
E1-5
Energy consumption and mix
71
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions
72
E1-7
GHG removals and GHG mitigation projects financed through carbon credits
73
E1-8
Internal carbon pricing
73
ESRS E2 Pollution
Impact, risk and opportunity management
E2 ESRS 2 IRO-1
Description of the processes to identify and assess material pollution-related impacts, risks and
opportunities
59
MDR-P
Policies adopted to manage material sustainability matters
73
MDR-A
Actions and resources in relation to material sustainability matters
73
MDR-T
Tracking effectiveness of policies and actions through targets
73
ESRS E3 Water and marine resources
Impact, risk and opportunity management
E3 ESRS 2 IRO-1
Description of the processes to identify and assess material pollution-related impacts, risks and
opportunities
59
MDR-P
Policies adopted to manage material sustainability matters
75
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MDR-A
Actions and resources in relation to material sustainability matters
75
MDR-T
Tracking effectiveness of policies and actions through targets
75
ESRS E4 Biodiversity and ecosystems
Strategy
E4 ESRS 2 SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
68
Impact, risk and opportunity management
E4 ESRS 2 IRO-1
Description of processes to identify and assess material biodiversity and ecosystem-related impacts,
risks and opportunities
59
MDR-P
Policies adopted to manage material sustainability matters
75
MDR-A
Actions and resources in relation to material sustainability matters
75
MDR-T
Tracking effectiveness of policies and actions through targets
75
ESRS E5 Resource use and circular economy
Impact, risk and opportunity management
E5 ESRS 2 IRO-1
Description of the processes to identify and assess material resource use and circular economy-
related impacts, risks and opportunities
59
MDR-P
Policies related to resource use and circular economy
76
MDR-A
Actions and resources related to resource use and circular economy
76
Metrics and targets
E5-3 (MDR-T)
Targets related to resource use and circular economy
76
E5-4
Resource inflows
76
E5-5
Resource outflows
78
Social topics
ESRS S1 Own workforce
Strategy
S1 ESRS 2 SBM-2
Interests and views of stakeholders
52
S1 ESRS 2 SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
89
Impact, risk and opportunity management
Metrics and targets
S1-6
Characteristics of the undertaking’s employees
96
S1-9
Diversity metrics
98
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S1-10
Adequate wages
98
S1-11
Social protection
99
S1-13
Training and skills development metrics
99
S1-14
Health and safety metrics
99
S1-17
Incidents, complaints and severe human rights impacts
100
ESRS S2 Workers in the value chain
Strategy
S2 ESRS 2 SBM-2
Interests and views of stakeholders
52
S2 ESRS 2 SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
89
ESRS S3 Affected communities
Strategy
S3 ESRS 2 SBM-2
Interests and views of stakeholders
52
S3 ESRS 2 SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
89
ESRS S4 Consumers and end-users
Strategy
S4 ESRS 2 SBM-2
Interests and views of stakeholders
52
S4 ESRS 2 SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business mode
89
Governance topics
ESRS G1 Business Conduct
Governance
G1 ESRS 2 GOV-1
The role of the administrative, supervisory and management bodies
47
Impact, risk and opportunity management
G1 ESRS 2 IRO-1
Description of the processes to identify and assess material impacts, risks and opportunities
59
G1-1
Corporate culture and bBusiness conduct policies and corporate culture
102
G1-2
Management of relationships with suppliers
103
Metrics and targets
G1-4
Confirmed incidents of corruption or bribery
104
G1-6
Payment practices
104
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5.5.2. List of datapoints in cross-cutting and topical standards that derive from other EU
legislation
This appendix is an integral part of the ESRS 2. The table below illustrates the datapoints in ESRS 2 and topical ESRS
that derive from other EU legislation.
The undertaking shall also include a table of all the datapoints that derive from other EU legislation as listed in Appendix B of this standard, indicating
where they can be found in the sustainability statement and including those that the undertaking has assessed as not material, in which case the
undertaking shall indicate “Not material” in the table in accordance with ESRS 1 paragraph 35.
Disclosure Requirement
and related datapoint
SFDR
12
reference
Pillar 3
13
reference
Benchmark
Regulation
14
reference
EU Climate
Law
15
reference
Page
ESRS 2 GOV-1
Board's gender diversity
paragraph 21 (d)
Indicator number
13 of Table #1 of
Annex 1
Commission
Delegated
Regulation (EU)
2020/1816
16
, Annex
II
47
ESRS 2 GOV-1
Percentage of board members
who are independent paragraph
21 (e)
Delegated
Regulation (EU)
2020/1816, Annex
II
47
ESRS 2 GOV-4
Statement on due diligence
paragraph 30
Indicator number
10 Table #3 of
Annex 1
48
ESRS 2 SBM-1
Involvement in activities related
to fossil fuel activities paragraph
40 (d) i
Indicators number 4
Table #1 of Annex 1
Article 449a
Regulation (EU) No
575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
17
Table
1: Qualitative
information on
Environmental risk
and Table 2:
Qualitative
information on
Social risk
Delegated
Regulation (EU)
2020/1816, Annex
II
Not applicable
12
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial
services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1).
13
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and
investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation “CRR”) (OJ L 176, 27.6.2013, p. 1).
14
Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments
and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU)
No 596/2014 (OJ L 171, 29.6.2016, p. 1).
15
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality
and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
16
Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the
Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark
provided and published (OJ L 406, 3.12.2020, p. 1).
17
Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022 amending the implementing technical standards laid down in
Implementing Regulation (EU) 2021/637 as regards the disclosure of environmental, social and governance risks (OJ L 324.19.12.2022, p.1.).
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ESRS 2 SBM-1
Involvement in activities related
to chemical production
paragraph 40 (d) ii
Indicator number 9
Table #2 of Annex 1
Delegated
Regulation (EU)
2020/1816, Annex
II
Not applicable
ESRS 2 SBM-1
Involvement in activities related
to controversial weapons
paragraph 40 (d) iii
Indicator number
14 Table #1 of
Annex 1
Delegated
Regulation (EU)
2020/1818
18
, Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex
II
Not applicable
ESRS 2 SBM-1
Involvement in activities related
to cultivation and production of
tobacco paragraph 40 (d) iv
Delegated
Regulation (EU)
2020/1818, Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex
II
Not applicable
ESRS E1-1
Transition plan to reach climate
neutrality by 2050 paragraph 14
Regulation (EU)
2021/1119, Article
2(1)
70
ESRS E1-1
Undertakings excluded from
Paris-aligned Benchmarks
paragraph 16 (g)
Article 449a
Regulation (EU) No
575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 1:
Banking book-
Climate Change
transition risk:
Credit quality of
exposures by
sector, emissions
and residual
maturity
Delegated
Regulation (EU)
2020/1818,
Article12.1 (d) to
(g), and Article 12.2
Not applicable
ESRS E1-4
GHG emission reduction targets
paragraph 34
Indicator number 4
Table #2 of Annex 1
Article 449a
Regulation (EU) No
575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 3:
Banking book –
Climate change
transition risk:
alignment metrics
Delegated
Regulation (EU)
2020/1818, Article 6
71
18
Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the
Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (OJ L 406, 3.12.2020, p. 17).
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ESRS E1-5
Energy consumption from fossil
sources disaggregated by
sources (only high climate
impact sectors) paragraph 38
Indicator number 5
Table #1 and
Indicator n. 5 Table
#2 of Annex 1
71
ESRS E1-5 Energy consumption
and mix paragraph 37
Indicator number 5
Table #1 of Annex 1
71
ESRS E1-5
Energy intensity associated with
activities in high climate impact
sectors paragraphs 40 to 43
Indicator number 6
Table #1 of Annex 1
72
ESRS E1-6
Gross Scope 1, 2, 3 and Total
GHG emissions paragraph 44
Indicators number 1
and 2 Table #1 of
Annex 1
Article 449a;
Regulation (EU) No
575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 1:
Banking book –
Climate change
transition risk:
Credit quality of
exposures by
sector, emissions
and residual
maturity
Delegated
Regulation (EU)
2020/1818, Article
5(1), 6 and 8(1)
72
ESRS E1-6
Gross GHG emissions intensity
paragraphs 53 to 55
Indicators number 3
Table #1 of Annex 1
Article 449a
Regulation (EU) No
575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 3:
Banking book –
Climate change
transition risk:
alignment metrics
Delegated
Regulation (EU)
2020/1818, Article
8(1)
72
ESRS E1-7
GHG removals and carbon
credits paragraph 56
Regulation (EU)
2021/1119, Article
2(1)
73
ESRS E1-9
Exposure of the benchmark
portfolio to climate-related
physical risks paragraph 66
Delegated
Regulation (EU)
2020/1818, Annex
II Delegated
Regulation (EU)
2020/1816, Annex
II
Phased-in
disclosure
requirement
ESRS E1-9
Disaggregation of monetary
amounts by acute and chronic
physical risk paragraph 66 (a)
Article 449a
Regulation (EU) No
575/2013;
Commission
Phased-in
disclosure
requirement
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ESRS E1-9
Location of significant assets at
material physical risk paragraph
66 (c).
Implementing
Regulation (EU)
2022/2453
paragraphs 46 and
47; Template 5:
Banking book -
Climate change
physical risk:
Exposures subject
to physical risk.
ESRS E1-9 Breakdown of the
carrying value of its real estate
assets by energy-efficiency
classes paragraph 67 (c).
Article 449a
Regulation (EU) No
575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
paragraph
34;Template
2:Banking book -
Climate change
transition risk:
Loans collateralised
by immovable
property - Energy
efficiency of the
collateral
Phased-in
disclosure
requirement
ESRS E1-9
Degree of exposure of the
portfolio to climate- related
opportunities paragraph 69
Delegated
Regulation (EU)
2020/1818, Annex
II
Phased-in
disclosure
requirement
ESRS E2-4
Amount of each pollutant listed
in Annex II of the E-PRTR
Regulation (European Pollutant
Release and Transfer Register)
emitted to air, water and soil,
paragraph 28
Indicator number 8
Table #1 of Annex 1
Indicator number 2
Table #2 of Annex 1
Indicator number 1
Table #2 of Annex 1
Indicator number 3
Table #2 of Annex 1
Not applicable
ESRS E3-1
Water and marine resources
paragraph 9
Indicator number 7
Table #2 of Annex 1
Not applicable
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8
Table 2 of Annex 1
Not applicable
ESRS E3-1
Sustainable oceans and seas
paragraph 14
Indicator number
12 Table #2 of
Annex 1
Not applicable
ESRS E3-4
Total water recycled and reused
paragraph 28 (c)
Indicator number
6.2 Table #2 of
Annex 1
Not material
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ESRS E3-4
Total water consumption in m
3
per net revenue on own
operations paragraph 29
Indicator number
6.1 Table #2 of
Annex 1
Not material
ESRS 2- IRO 1 - E4 paragraph
16 (a) i
Indicator number 7
Table #1 of Annex 1
59
ESRS 2- IRO 1 - E4 paragraph
16 (b)
Indicator number
10 Table #2 of
Annex 1
59
ESRS 2- IRO 1 - E4 paragraph
16 (c)
Indicator number
14 Table #2 of
Annex 1
59
ESRS E4-2
Sustainable land / agriculture
practices or policies paragraph
24 (b)
Indicator number 11
Table #2 of Annex 1
Not applicable
ESRS E4-2
Sustainable oceans / seas
practices or policies paragraph
24 (c)
Indicator number
12 Table #2 of
Annex 1
Not applicable
ESRS E4-2
Policies to address deforestation
paragraph 24 (d)
Indicator number
15 Table #2 of
Annex 1
Not applicable
ESRS E5-5
Non-recycled waste paragraph
37 (d)
Indicator number
13 Table #2 of
Annex 1
78
ESRS E5-5
Hazardous waste and
radioactive waste paragraph 39
Indicator number 9
Table #1 of Annex 1
78
ESRS 2- SBM3 - S1
Risk of incidents of forced labour
paragraph 14 (f)
Indicator number
13 Table #3 of
Annex I
55
ESRS 2- SBM3 - S1
Risk of incidents of child labour
paragraph 14 (g)
Indicator number
12 Table #3 of
Annex I
55
ESRS S1-1
Human rights policy
commitments paragraph 20
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex I
Phased-in
disclosure
requirement
ESRS S1-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph
21
Delegated
Regulation (EU)
2020/1816, Annex
II
Phased-in
disclosure
requirement
ESRS S1-1
Indicator number 11
Table #3 of Annex I
Phased-in
disclosure
requirement
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113
processes and measures for
preventing trafficking in human
beings paragraph 22
ESRS S1-1
workplace accident prevention
policy or management system
paragraph 23
Indicator number 1
Table #3 of Annex I
Phased-in
disclosure
requirement
ESRS S1-3
grievance/complaints handling
mechanisms paragraph 32 (c)
Indicator number 5
Table #3 of Annex I
Phased-in
disclosure
requirement
ESRS S1-14
Number of fatalities and number
and rate of work-related
accidents paragraph 88 (b) and
(c)
Indicator number 2
Table #3 of Annex I
Delegated
Regulation (EU)
2020/1816, Annex
II
99
ESRS S1-14
Number of days lost to injuries,
accidents, fatalities or illness
paragraph 88 (e)
Indicator number 3
Table #3 of Annex I
99
ESRS S1-16
Unadjusted gender pay gap
paragraph 97 (a)
Indicator number
12 Table #1 of
Annex I
Delegated
Regulation (EU)
2020/1816, Annex
II
Phased-in
disclosure
requirement
ESRS S1-16
Excessive CEO pay ratio
paragraph 97 (b)
Indicator number 8
Table #3 of Annex I
Phased-in
disclosure
requirement
ESRS S1-17
Incidents of discrimination
paragraph 103 (a)
Indicator number 7
Table #3 of Annex I
100
ESRS S1-17 Non-respect of
UNGPs on Business and Human
Rights and OECD paragraph
104 (a)
Indicator number
10 Table #1 and
Indicator n. 14
Table #3 of Annex I
Delegated
Regulation (EU)
2020/1816, Annex
II Delegated
Regulation (EU)
2020/1818 Art 12
(1)
100
ESRS 2- SBM3 – S2
Significant risk of child labour or
forced labour in the value chain
paragraph 11 (b)
Indicators number
12 and n. 13 Table
#3 of Annex I
89
ESRS S2-1
Human rights policy
commitments paragraph 17
Indicator number 9
Table #3 and
Indicator n. 11
Table #1 of Annex 1
Phased-in
disclosure
requirement
ESRS S2-1 Policies related to
value chain workers paragraph
18
Indicator number 11
and n. 4 Table #3 of
Annex 1
Phased-in
disclosure
requirement
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114
ESRS S2-1Non-respect of
UNGPs on Business and Human
Rights principles and OECD
guidelines paragraph 19
Indicator number
10 Table #1 of
Annex 1
Delegated
Regulation (EU)
2020/1816, Annex
II Delegated
Regulation (EU)
2020/1818, Art 12
(1)
Phased-in
disclosure
requirement
ESRS S2-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph
19
Delegated
Regulation (EU)
2020/1816, Annex
II
Phased-in
disclosure
requirement
ESRS S2-4
Human rights issues and
incidents connected to its
upstream and downstream value
chain paragraph 36
Indicator number
14 Table #3 of
Annex 1
Phased-in
disclosure
requirement
ESRS S3-1
Human rights policy
commitments paragraph 16
Indicator number 9
Table #3 of Annex 1
and Indicator
number 11 Table #1
of Annex 1
Phased-in
disclosure
requirement
ESRS S3-1
non-respect of UNGPs on
Business and Human Rights,
ILO principles or and OECD
guidelines paragraph 17
Indicator number
10 Table #1 Annex
1
Delegated
Regulation (EU)
2020/1816, Annex
II Delegated
Regulation (EU)
2020/1818, Art 12
(1)
Phased-in
disclosure
requirement
ESRS S3-4
Human rights issues and
incidents paragraph 36
Indicator number
14 Table #3 of
Annex 1
Phased-in
disclosure
requirement
ESRS S4-1 Policies related to
consumers and end-users
paragraph 16
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex 1
Phased-in
disclosure
requirement
ESRS S4-1
Non-respect of UNGPs on
Business and Human Rights and
OECD guidelines paragraph 17
Indicator number
10 Table #1 of
Annex 1
Delegated
Regulation (EU)
2020/1816, Annex
II Delegated
Regulation (EU)
2020/1818, Art 12
(1)
Phased-in
disclosure
requirement
ESRS S4-4
Human rights issues and
incidents paragraph 35
Indicator number
14 Table #3 of
Annex 1
Phased-in
disclosure
requirement
ESRS G1-1
United Nations Convention
against Corruption paragraph 10
(b)
Indicator number
15 Table #3 of
Annex 1
102
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115
ESRS G1-1
Protection of whistle- blowers
paragraph 10 (d)
Indicator number 6
Table #3 of Annex 1
102
ESRS G1-4
Fines for violation of anti-
corruption and anti-bribery laws
paragraph 24 (a)
Indicator number
17 Table #3 of
Annex 1
Delegated
Regulation (EU)
2020/1816, Annex
II)
104
ESRS G1-4
Standards of anti- corruption and
anti- bribery paragraph 24 (b)
Indicator number
16 Table #3 of
Annex 1
104
5.5.3. Statement on due diligence (GOV-4)
CORE ELEMENTS OF DUE DILIGENCE
PARAGRAPHS IN THE SUSTAINABILITY
STATEMENT
a)
Embedding due diligence in governance, strategy and business model
GOV-1: 47 p.
GOV-2: 48 p.
GOV-3: 48 p.
SBM-3: 55, 68, 89, 101 p.
b)
Engaging with affected stakeholders in all key steps of the due diligence
GOV-2: 48 p.
SBM-2: 52 p.
IRO-1: 59 p.
c)
Identifying and assessing adverse impacts
SBM-3: 55, 68, 89, 101 p.
IRO-1: 59 p.
MDR-P: 69, 91, 102 p.
d)
Taking actions to address those adverse impacts
MDR-A: 70, 73, 75, 75, 76, 91-96, 101-104 p.
e)
Tracking the effectiveness of these efforts and communicating
SBM-1: 49 p.
MDR-T: 71, 73, 75, 75, 76, 91-96, 104 p.
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SEPARATE AND
CONSOLIDATED
FINANCIAL
STATEMENTS
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6. Company’s Financial Statements
Statement of comprehensive income
For the year ended 31 December, EUR thousand
Note
2024
2023
Revenue from contracts with customers
6.1.5
71,875
80,751
Cost of sales
6.1.6
(71,460)
(76,909)
Gross profit
415
3,842
Other revenue
6.1.10
1,360
1,351
Selling expenses
6.1.7
(422)
(390)
Administrative expenses, total:
6.1.8
(6,648)
(7,673)
Impairment loss (reversal) on trade debts, contract assets and
other receivables
46
30
Reimbursement of costs under the Settlement Agreement
1,200
-
Other administrative expenses
(7,894)
(7,703)
Other expenses
6.1.10
(430)
(759)
Operating profit (loss)
(5,725)
(3,629)
Finance income, total
6.1.11
1,478
1,293
Interest income
455
428
Other finance income
1,023
865
Finance expense, total:
6.1.11
(789)
(383)
Interest expenses
(440)
(375)
Other finance expense
(349)
(8)
Profit (loss) before tax
(5,036)
(2,719)
Income tax expenses (benefit)
6.1.12
113
440
Net profit (loss)
(4,923)
(2,279)
Other comprehensive income
Items that will never be transferred to profit/(loss)
-
-
Non-current asset revaluation impact
-
-
Deferred income tax on revaluation of non-current assets
-
-
Items that will be transferred to profit (loss)
Other comprehensive income, total
-
-
Total comprehensive income (loss)
(4,923)
(2,279)
Basic earnings (loss) per share (EUR)
6.1.31
(0.301)
(0.14)
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Statement of Financial Position
As at 31 December 2024, EUR thousand
Note
2024
2023
ASSETS
Non-current assets
Property, plant and equipment
6.1.13
3,840
3,966
Intangible Assets
6.1.14
133
150
Investment Property
6.1.15
3,991
3,926
Right of use assets
6.1.26
279
457
Investments in subsidiaries
6.1.16
2,554
2,850
Loans granted
6.1.17
6,837
6,378
Non-current trade receivables
6.1.4,
6.1.19
-
1
Other non-current financial assets
465
548
Deferred tax assets
6.1.12
1,004
891
Total non-current assets
19,103
19,167
Current assets
Inventories
6.1.18
4,084
4,634
Trade receivables
6.1.4,
6.1.19
7,475
13,757
Contract assets
6.1.4,
6.1.19
2,700
2,531
Prepayments
547
1,050
Loans granted
6.1.17
1,169
1,427
Other current assets
6.1.20
27
36
Prepaid income tax
-
-
Cash and cash equivalents
6.1.21
1,276
5,125
Total current assets
17,278
28,560
TOTAL ASSETS
36,381
47,727
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Statement of financial position (continued)
As at 31 December 2024, EUR thousand
Note
2024
2023
EQUITY AND LIABILITIES
Equity
Issued capital
6.1.22
4,742
4,742
Reserves
6.1.22
2,042
2,296
Retained earnings
7,434
12,131
Total equity
14,218
19,169
Non-current liabilities
Debt to the Competition Council
6.1.27
1,624
3,017
Warranty provisions
6.1.25
369
270
Deferred tax liability
6.1.12
-
-
Pension fund provision
6.1.25
66
81
Non-current lease liabilities and other payables
6.1.26
418
225
Total non-current liabilities
2,477
3,593
Current liabilities
Loans
6.1.23
2,366
4,120
Current lease liabilities
6.1.26
229
259
Trade payables
6.1.24
10,983
14,595
Contract liability
6.1.27,
6.1.19,
6.1.25
1,033
915
Provisions
6.1.25
276
306
Other liabilities
6.1.19,
6.1.27
4,799
4,770
Total current liabilities
19,686
24,965
Total liabilities
22,163
28,558
TOTAL EQUITY AND LIABILITIES
TOTAL
36,381
47,727
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Statement of changes in equity
EUR thousand
Note
Issued capital
Legal reserve
Revaluation
reserve
Retained earnings
Total equity
Balance as at 31 December 2023
4,742
475
1,822
12,131
19,170
Net profit (loss)
-
-
-
(4,923)
(4,923)
Total comprehensive income for the
year
-
-
-
(4,923)
(4,923)
Disposal of assets
-
-
(28)
(28)
Depreciation of revalued assets
-
-
(227)
226
(1)
Balance as at 31 December 2024
4,742
475
1,567
7,434
14,218
Balance as at 31 December 2022
4,742
475
2,034
14,197
21,448
Net profit (loss)
-
-
-
(2,279)
(2,279)
Total comprehensive income for the
year
-
-
-
(2,279)
(2,279)
Depreciation of revalued assets
-
-
(212)
213
1
Balance as at 31 December 2023
4,742
475
1,822
12,131
19,170
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Statement of Cash Flows
For the year ended 31 December, EUR thousand
Note
2024
2023
Cash flows from operating activities
Net profit (loss)
(4,923)
(2,279)
Adjustments to:
Depreciation and amortisation
6.1.13,
6.1.14
507
670
Result from disposal of property, plant and equipment
(241)
(45)
Income tax expenses (benefit)
6.1.12
(113)
(440)
Financing activities
6.1.11
(1,113)
(1,026)
Other non-cash items
725
(627)
Net cash flows from operating activities before changes in working
capital
(5,158)
(3,747)
Changes in working capital
Changes in non-current receivables
241
241
Changes in inventories
6.1.18
454
617
Changes in trade receivables and contract assets
6.1.19
5,272
2,232
Changes in prepayments
439
(353)
Changes in other assets
10
366
Changes in trade payables
6.1.24
(3,109)
410
Change in contract liabilities (prepayments received)
6.1.19
249
(755)
Changes in other liabilities
127
(4,607)
Income tax paid
-
-
Net cash flows from operating activities
(1,475)
(5,596)
Cash flows used in investing activities
Acquisition of intangible assets and property, plant and equipment
6.1.13,
6.1.14
(452)
(640)
Disposal of property, plant and equipment
401
71
Acquisition of investments
65
-
Recovery of Investments
-
3,108
Loans granted
6.1.28
-
-
Collection of loans granted
348
24
Dividends received
6.1.11
1,003
854
Interest received
6.1.11
-
1
Net cash flows used in investing activities
1,365
3,418
Cash flows from/used in financing activities
Dividends paid*
-
-
Loans received (overdraft)
6.1.4,
6.1.23
26,998
26,853
Loans and other borrowings repaid
6.1.4,
6.1.23
(30,143)
(24,100)
Lease obligations
6.1.26
(158)
(117)
Interest paid
6.1.4
(437)
(345)
Net cash flows from/used in financing activities
(3,740)
2,291
Net increase/(decrease) in cash and cash equivalents
(3,850)
113
Effect of foreign exchange on cash
Cash and cash equivalents as at January 1
6.1.21
5,126
5,013
Cash and cash equivalents as at December 31
6.1.21
1,276
5,126
* There were no dividend payments in 2024 and 2023.
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6.1. Notes to the Financial Statements
6.1.1. General information
PST Group AB (hereinafter the “Company”) was established in 1957. The company code is 147732969, registered address
is P. Puzino st. 1, LT-35173 Panevėžys, the Republic of Lithuania. As from 13 July 2006, the Company’s ordinary shares
are listed on the Official trading list of the Nasdaq Vilnius Stock Exchange. The main activities of the Company are
construction of buildings, structures, plant and communication facilities in Lithuania and abroad. As at 31 December 2024,
the Company had 402 employees (31 December 2023: 491 employee).
The Company has the following branches in Lithuania: Gerbusta and Pastatų Apdaila. The Company also has permanent
establishments in the Republic of Latvia and in the Kingdom of Sweden.
As at 31 December 2024, the principal shareholders of the Company were as follows:
• Hisk AB, S. Kerbedžio st. 7, Panevėžys, company code 147710353, (49.78%; ultimate controlling shareholder);
• Prosperus Grupė UAB (5.00%).
• The freely traded shares, owned by natural and legal persons (45.22%). No one owns more than 5%.
These financial statements are the Company’s separate financial statements. The Company is also preparing the Company
and its subsidiaries’ consolidated financial statements. Set of consolidated financial statements is kept at the Company’s
registered office at P. Puzino st. 1, LT-35173 Panevėžys, the Republic of Lithuania, and published on website www.pst.lt.
The information about the subsidiaries’ activities is presented in Note 6.1.16
The shareholders of the Company have a statutory right to either approve these financial statements or not approve them
and require a new set of financial statements to be prepared. The Company’s management authorised these financial
statements on 8 April 2025.
6.1.2. Basis of Preparation
Statement of compliance
These financial statements have been prepared in accordance with International Financial Reporting Standards as adopted
by the European Union (hereinafter “IFRS”).
Basis of preparation of the financial statements
The financial statements for the year ended 31 December 2024 have been prepared on a going concern basis and using
the historical cost convention, except for certain items of property, plant and equipment, investment property, and certain
financial instruments measured at fair value.
These financial statements also present comparative information for the previous reporting period
Functional and presentation currency
The financial statements are presented in euro, the national currency of the Republic of Lithuania, which is the Company’s
functional currency.
Due to rounding of certain amounts to thousand, figures in the tables may differ. Such rounding bias is immaterial in these
financial statements.
Judgements and estimates
The preparation of the financial statements in conformity with IFRSs requires management to make judgements and
estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and
expenses. Actual results may differ from these 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 revised and in
any future periods affected.
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Information about significant areas of estimation uncertainty in applying accounting policies that have a significant effect on
the amounts recognised in the financial statements and have a significant risk of causing material adjustments to the
financial statements in the next financial year is included in the following notes:
Note 6.1.12: deferred taxes recognition. Deferred tax asset is recognised to the extent that it is probable that taxable profit
will be available against which the deductible temporary differences could be utilised.
Note 6.1.13: fair value of land and buildings which are measured using the revaluation model, useful lives of property, plant
and equipment and intangible assets. The Company assesses the useful lives of property, plant and equipment and
intangible assets at least once a year (Note 3.3). Revaluations are carried out regularly ensuring that the carrying amount
of land and buildings do not significantly differ from their fair values as at reporting date. The Company’s real estate appraisal
was carried out when preparing these financial statements,
Note 6.1.16: measurement of recoverable amounts of investments in subsidiaries. A key factor in estimating the recoverable
amounts of the investment in subsidiaries is the recoverability of ongoing construction projects and other assets of
subsidiaries. Therefore, the Company engaged external appraisers to estimate the fair values of these projects based on
discounted cash flow or comparable price technique, the Company also relied on the Purchase and Sale Agreement signed
with a third party after the reporting date and related information.
Notes 6.1.19 and 6.1.27: impairment of trade receivables and estimation of revenue from contracts with customers and
contract assets as well as contract liabilities based on the stage of completion of the construction contracts. The accuracy
of the recognition of revenue on contracts in progress is highly dependent on the judgement exercised by management in
assessing the completeness and accuracy of planned costs (budget) as it is the key assumption in the assessment of
revenue, contract assets and contract liabilities based on the stage of completion of the contracts in progress. Estimating
the recoverable amounts of receivables is a process, which requires significant management judgement and estimates,
particularly those that are related to expected credit losses assessment based on the analysis of the historical credit losses,
considerations of future factors and other subjective risk factors related to the specific debtor or debtors’ group. Estimates
were applied in assessing the amounts to be collected and their timing.
Note 6.1.17: loans granted are classified as long-term or short-term. Additionally, the impairment testing requires the
management to make an assessment of the significance of increase in credit risk since initial recognition, which is performed
by the management considering the liquidity situation of subsidiaries taking into account their financial statements and cash
flows forecasts.
Note 6.1.25: the Company estimates warranty provision on a monthly basis having regard to monthly revenue. Warranty
provision is being estimated by taking into account revenue, actual warranty expenses incurred in previous periods, its
proportion against actual sales, statutory term of warranty and historical information.
Note 6.1.28: The management judgements are to predict the outcome of litigations. Provisions are not recognised in the
financial statements as based on the management judgement it is more likely than not, that the Company will win the legal
disputes mentioned in the Note 6.1.28, or it is not possible to assess reliably the possible outcome of the contingency at
the moment.
6.1.3. Summary of Significant Accounting Policies
During the reporting period, the Company adopted new standards and amendments to existing standards and their
interpretations, which are relevant to the activities and effective for annual periods beginning on or after 1 January 2024.
a) Below are new standards, amendments thereto and interpretations effective for annual periods beginning
on or after 1 January 2024
Amendments to IAS 1: Classification of Liabilities as Current or Non-current and Classification of Liabilities as
Current or Non-current (issued on 23 January 2020, effective from 1 January 2024)
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The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in
the statement of financial position debt and other liabilities with an uncertain settlement date should be classified as current
or non-current. The amendments affect the presentation of liabilities in the statement of financial position and do not change
existing requirements around measurement or timing of recognition of any asset, liability, income or expenses, nor the
information that entities disclose about those items. Also, the amendments clarify the classification requirements for debt
which may be settled by the company issuing own equity instruments.
The amendments in Non-current Liabilities with Covenants (Amendments to IAS 1) (issued on 31 October 2022, effective
from 1 January 2024):
Modify the requirements introduced by Classification of Liabilities as Current or Non-current on how an entity classifies debt
and other financial liabilities as current or non-current in particular circumstances: only covenants with which an entity is
required to comply on or before the reporting date affect the classification of a liability as current or non-current. In addition,
an entity has to disclose information in the notes that enables users of financial statements to understand the risk that non-
current liabilities with covenants could become repayable within twelve months. The amendments are applied
retrospectively in accordance with IAS 8 and earlier application is permitted. The amendments do not have a material impact
on the Company’s financial statements
Amendments to IFRS 16 Lease Liability in a Sale and Leaseback with amendments that clarify how a seller-lessee
subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted
for as a sale (issued on 22 September 2022, effective from 1 January 2024):
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) requires a seller-lessee to subsequently measure lease
liabilities arising from a leaseback in a way that it does not recognise any amount of the gain or loss that relates to the right
of use it retains. The new requirements do not prevent a seller-lessee from recognising in profit or loss any gain or loss
relating to the partial or full termination of a lease. A seller-lessee applies the amendments retrospectively in accordance
with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to sale and leaseback transactions entered
into after the date of initial application. The adoption of the amendments had no significant impact on the Company’s
financial statements.
Amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements (issued on May 2023, effective from 1 January
2024):
Supplier Finance Arrangements amends IAS 7 Statement of Cash Flows to require an entity to provide additional
disclosures about its supplier finance arrangements. The amendments also add supplier finance arrangements as an
example within the liquidity risk disclosure requirements of IFRS 7 Financial Instruments: Disclosures. The amendments do
not have a material impact on the Company’s financial statements
b) Standards issued but not yet effective and not early adopted and their amendments
Amendments to IAS 21 Lack of Exchangeability (issued on August 2023, effective from 1 January 2025, early
application is possible):
Lack of Exchangeability amends IAS 21 The Effects of Changes in Foreign Exchange Rates to require an entity to apply a
consistent approach to assessing whether a currency is exchangeable into another currency and, when it is not, to
determining the exchange rate to use and the disclosures to provide.
The Company has not yet evaluated the impact of the implementation of these amendments.
Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7 (issued on 18 December
2024, effective from 1 January 2026 with early application permitted)
The amendments are to the own-use requirements, and hedge accounting requirements, together with related disclosures.
The scope of the amendments is narrow, and only if contracts meet the specified scoping characteristics will they be in the
scope of the amendments.
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The amendments include - clarifying the application of the ‘own-use’ requirements; permitting hedge accounting if these
contracts are used as hedging instruments; and adding new disclosure requirements to enable investors to understand the
effect of these contracts on a company’s financial performance and cash flows.
Amendments to IFRS 9 Financial Instruments
The own-use requirements in IFRS 9 are amended to include the factors an entity is required to consider when applying
IFRS 9:2.4 to contracts to buy and take delivery of renewable electricity for which the source of production of the electricity
is nature-dependent.
The hedge accounting requirements in IFRS 9 are amended to permit an entity using a contract for nature-dependent
renewable electricity with specified characteristics as a hedging instrument:
to designate a variable volume of forecast electricity transactions as the hedged item if specified criteria are met; and
to measure the hedged item using the same volume assumptions as those used for the hedging instrument.
Amendments to IFRS 7 Financial Instruments: Disclosures and IFRS 19 Subsidiaries without Public
Accountability: Disclosures
The IASB amends IFRS 7 and IFRS 19 to introduce disclosure requirements about contracts for nature-dependent
electricity with specified characteristics
The amendments are effective for annual reporting periods beginning on or after January 1, 2026, with earlier application
permitted.
The amendments shall be applied retrospectively; prior periods need not be restated to reflect the application of the
amendments
The Company has not yet evaluated the impact of the implementation of these amendments.
Annual Improvements Volume 11 (issued on 18 July 2024 effective from 1 January 2026, earlier application is
permitted)
These amendments include clarifications, simplifications, corrections and changes aimed at improving the consistency of
several IFRS Accounting Standards. The amendments contained in the Annual Improvements relate to:
• IFRS 1 First-time Adoption of International Financial Reporting Standards - Hedge Accounting by a First-time
Adopter
• IFRS 7 Financial Instruments: Disclosures:
o Gain or loss on derecognition
o Disclosure of differences between the fair value and the transaction price
o Disclosures on credit risk
• IFRS 9 Financial Instruments:
o Derecognition of lease liabilities
o Transaction price
• IFRS 10 Consolidated Financial Statements - Determination of a ‘de facto agent’
• IAS 7 Statement of Cash Flows - Cost Method.
These amendments are mandatory for financial years beginning on or after 1 January 2026; earlier application is permitted.
The Company has not yet evaluated the impact of the implementation of these amendments.
Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS
7 (issued on 30 May 2024 effective from 1 January 2026; earlier application is permitted)
Clarifying the classification of financial assets with environmental, social and corporate governance (ESG) and similar
features—ESG-linked features in loans could affect whether the loans are measured at amortised cost or fair value.
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Stakeholders asked how to determine how such loans should be measured based on the characteristics of the contractual
cash flows. To resolve any potential diversity in practice, the amendments clarify how the contractual cash flows on such
loans should be assessed.
Settlement of liabilities through electronic payment systems—stakeholders highlighted challenges in applying the
derecognition requirements in IFRS 9 to the settlement of a financial asset or a financial liability via electronic cash transfers.
The amendments clarify the date on which a financial asset or financial liability is derecognised. The IASB also decided to
develop an accounting policy option to allow a company to derecognise a financial liability before it delivers cash on the
settlement date if specified criteria are met.
With these amendments, the IASB has also introduced additional disclosure requirements to enhance transparency for
investors regarding investments in equity instruments designated at fair value through other comprehensive income and
financial instruments with contingent features, for example features tied to ESG-linked targets.
The amendments are effective for annual reporting periods beginning on or after 1 January 2026. Earlier application of
either all the amendments at the same time or only the amendments to the classification of financial assets is permitted.
An entity is required to apply the amendments retrospectively. An entity is not required to restate prior periods to reflect the
application of the amendments, but may do so if, and only if, it is possible to do so without the use of hindsight.
The Company has not yet evaluated the impact of the implementation of these amendments.
IFRS 18 Presentation and Disclosure in Financial Statements (issued on 9 April 2024 effective from 1 January
2027)
IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including specified totals and
subtotals. It also requires disclosure of management-defined performance measures and includes new requirements for
aggregation and disaggregation of financial information based on the identified ‘roles’ of the primary financial statements
and the notes.
The Company has not yet evaluated the impact of the implementation of this standard.
6.1.3.1. Foreign currency
Transactions in foreign currencies are translated to the functional currency at exchange rates ruling at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the
functional currency at the exchange rate by the European Central Bank ruling at that date. The foreign currency gain or loss
on monetary items is recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies that
are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value
was determined. Non-monetary assets and liabilities denominated in foreign currencies that are measured at cost are
translated to the functional currency at the exchange rate at the date that the asset or liability is recognised in statement of
financial position. Foreign currency differences arising on translation are recognised in profit or loss.
6.1.3.2. Financial instruments
Financial instrument: a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.
Financial assets
Initial recognition and measurement
At initial recognition, financial asset is classified as either measured at amortised cost, fair value through other
comprehensive income or fair value through profit or loss.
The classification of the financial asset depends on the contractual cash flow characteristics of the asset and the Company’s
business model for managing the asset. These assets, except for trade receivables that do not have a significant financing
component, are initially measured by the Company at fair value plus, in the case of a financial asset or financial liability not
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at fair value through profit or loss, transaction costs. Trade receivables that do not have a significant financing component
are measured at the transaction price identified under IFRS 15.
Financial asset is classified and measured at amortised cost or fair value through other comprehensive income, where cash
flows arising from financial asset are solely payments of principal and
interest (SPPI) on the principal amount outstanding. This assessment is known as the SPPI test and is performed for each
financial instrument.
The Company’s financial asset management model indicates how the 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 recognised on the trade date, i.e. the date on which the Company
commits to purchase or sell the financial asset.
Subsequent measurement
After initial recognition, the Company measures financial assets:
(a) Amortised cost (debt instruments);
(b) Fair value through OCI with recycling of cumulative gains and losses upon derecognition (debt instruments). As at
31 December 2024 and 2023, the Company did not have such financial instruments.
(c) Fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments).
As at 31 December 2024 and 2023, the Company did not have such financial instruments.
(d) Fair value through profit or loss. As at 31 December 2024 and 2023, the Company did not have such financial
instruments.
Financial asset at amortised cost (debt instruments)
The Company measures financial assets at amortised cost, if the two conditions are met:
(a) Financial assets are held within the business model whose objective is to hold financial assets to collect their
contractual cash flows; and
(b) Contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding
Financial assets measured at amortised cost are subsequently accounted for by applying the effective interest method
(EIR) less impairment losses. Gain or loss is recognised in the statement of comprehensive income when the asset is
derecognised, modified or impaired.
The Company’s financial assets at amortised cost includes trade, other current and non-current receivables, loans granted.
Impairment of financial assets
In general, IFRS 9 requires the Company to recognize expected credit losses (ECLs) for all debt instruments that are not
measured at fair value through profit or loss. ECLs are based on the difference between all contractual cash flows and all
the cash flows that the Company expects to receive, discounted at the approximate original effective interest rate. ECLs
are recognised in two stages.
For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are
provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For
those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance
is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a
lifetime ECL).
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For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the
Company does not track changes in credit risk, but instead recognises an impairment loss based on lifetime ECLs at each
reporting date.
Assessment of impairment of trade receivables and contract assets
Based on the Company’s management assessment, trade receivables and contract assets do not include a significant
financing component and are accordingly measured for impairment using the simplified method, i.e. management makes
an individual assessment of expected credit losses for each important customer taking into account its credit history, future
factors and subjective risk factors related to the borrower. To assess all other receivables the Company uses the expected
loss rate matrix which is based on historical credit loss analysis and adjusted to reflect future factors specific to borrowers
and the economic environment.
Estimation of the impairment of loans granted
The Company grants loans to the Group companies with a fixed maturity as it is disclosed in Note 17. For assessment of
impairment of loans granted the expected 12-months credit losses are assessed and accounted upon issue of the loan. In
subsequent periods, given the absence of significant increase in the credit risk associated with the debtor, the Company
reassesses the 12-months ECL balance based on the loan amount still outstanding as of the date of the re-assessment. If
it is determined that the financial position of the debtor has significantly deteriorated compared to the position prevailing at
the time of the loan issue, the Company accounts for all the ECLs over the remaining life of the loan. Loans subject to
assessment of lifetime ECLs are considered to be credit-impaired financial assets.
The Company considers a financial asset in default when contractual payments are 90 days past due or when indications
exist that the debtors or a group of debtors are experiencing significant financial difficulty, they breach the contract (such
as a default or delinquency in interest or principal payments), there exists a probability that they will enter bankruptcy or
other financial reorganisation, and in cases where observable data indicate that there is a measurable decrease in the
estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
ECLs for loans and trade receivables is accounted for through profit/loss using allowance for doubtful debts. A financial
asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
Financial liabilities
Initial recognition and measurement:
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans received
and payables. All financial liabilities are recognised initially at fair value and, in the case of loans received and payables,
net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans
received, including bank overdrafts.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below.
Loans received and other payables
After initial recognition, loans and other payables are carried at amortised cost using the effective interest method (EIR).
Gains and losses are recognised in the statement of comprehensive income, when the liabilities are written off or amortised.
Amortised cost is calculated by reference to the discount or premium on 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.
Offsetting 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 a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis,
i.e. to realise the assets and settle the liabilities simultaneously.
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Derecognition of Financial Assets and Liabilities
Financial assets
A financial asset (or, where appropriate, a part of a financial asset or part of a group of similar financial assets) is
derecognised (i.e. it is removed from the statement of financial position of the Company) when:
the contractual rights to receive cash flows from the financial asset have expired; or
the Company has transferred its contractual rights to receive cash flows from the financial asset; or undertakes to remit,
without material delay, any cash flows received to a third party under a transfer agreement and (a) has transferred
substantially all risks and rewards of the asset, or (b) has neither transferred, nor retained substantially all the risks and
rewards of the asset but has transferred control of the asset.
Once the Company transfers the contractual rights to receive the cash flows of the financial asset or enters into a qualifying
pass-through arrangement with a third party, the Company evaluates whether and to what extent it retains the risks and
rewards of ownership of the financial asset. When the Company neither transfers nor retains substantially all the risks and
rewards of the asset nor transfers control of the asset, the asset is recognised to the extent of the Company’s continuing
involvement in the asset. In this case, the Company also recognizes the associated liability. The transferred asset and
associated liability are measured based on the rights and obligations retained by the Company.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower amount of
the original carrying amount of the asset and the maximum amount of consideration that the Company could be required
to repay (the amount of the guarantee).
Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. When a present
financial liability is swapped with other liability to the same lessor, although, upon other conditions or when the present
liability terms are substantially changed, this change is recognized as initial derecognition and establishment of a new
liability. The difference between respective balance values is recognised in the statement of comprehensive income.
6.1.3.3. Property, Plant and Equipment
Items of property, plant and equipment except for land and buildings are measured at cost less accumulated depreciation
and accumulated impairment losses. Depreciation is calculated using a straight-line method over the assessed useful life
of an asset.
Land and buildings are carried at revalued amount which is their fair value as at the revaluation date less subsequently
accumulated depreciation and impairment. Revaluations are carried out regularly ensuring that the carrying amount of land
and buildings do not significantly differ from their fair values as at reporting date.
The fair value of land and buildings is established by certified independent real estate appraisers. The revaluation reserve
of land and buildings is reduced by an amount equal to the difference between the depreciation based on the revalued
carrying amount and the depreciation based on the original cost of the land and buildings each year and is transferred
directly to retained earnings or loss.
In case of revaluation, when the estimated fair value of the assets exceeds their residual value, the residual value is
increased to the fair value and the amount of increase is included into revaluation reserve of property, plant and equipment
as other comprehensive income in equity. However, such increase in revaluation is recognised as income to the extent it
does not exceed the decrease of previous revaluation recognised in profit or loss. Depreciation is calculated from the
depreciable amount which is equal to acquisition cost or revaluated amount less residual value of an asset.
The accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and
the net amount is restated to the revalued amount of the asset. Upon disposal or recognising regular depreciation charge,
any revaluation surplus relating to the particular asset being depreciation or sold is transferred to retained earnings.
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Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets
includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working
condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are
located. Borrowing costs related to qualifying assets are capitalised.
When components of property, plant and equipment have different useful lives, they are accounted for as separate items
of property, plant and equipment.
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it
is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured
reliably. The residual value of the replaced component is written-off. The costs of the day-to-day servicing of property, plant
and equipment are recognised in profit or loss as incurred.
Depreciation is calculated on a straight-line basis over the estimated useful lives of each part of an item of property, plant
and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is
reasonably certain that the Company will obtain ownership by the end of the lease term.
The estimated useful lives of the assets are the following:
• Buildings and structures 8–40 years
• Plant and equipment 5–10 years
• Vehicles 5–10 years
• Fixtures and fittings 3–6 years
Depreciation methods, residual values and useful lives are reviewed at each reporting date.
Gains and losses on disposal are determined by comparing the proceeds from disposal with the residual value of property,
plant and equipment and are recognised net within other income or expenses. When revalued assets are sold or
reclassified, the amounts included in the revaluation surplus reserve are transferred to retained earnings.
6.1.3.4. Intangible assets
Software and other intangible assets, which have finite useful lives, are measured at cost less accumulated amortization
and accumulated impairment losses. Amortisation is recognised in profit or loss on a straight-line basis over the estimated
useful lives of intangible assets from the date that they are available for use. The estimated useful life is 3 years. The
Company does not have any intangible assets with infinite useful life.
6.1.3.5. Investment Property
Investment property of the Company consist of buildings that are held to earn rentals or for capital appreciation, rather than
for use in the production, or supply of goods, or services or for administration purposes, or sale in the ordinary course of
business.
Investment property is measured initially at cost, including transaction costs. Subsequent to initial recognition, investment
property is measured at fair value, which reflects market conditions at the reporting date. Gains or losses arising from
changes in the fair values of investment property are included in the profit or loss in the period in which they arise.
Acquisition cost includes expenditure that is directly attributable to the acquisition of the assets. The cost of self-constructed
assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working
condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are
located. Borrowing costs related to qualifying assets are capitalised.
Investment property is derecognised when either they have been disposed of or when the investment property is
permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the
net disposal proceeds and the carrying amount of the asset is recognised in the profit or loss in the period of derecognition.
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Transfers are made to or from investment property only when there is a change in use. For a transfer from investment
property to owner-occupied property, plant and equipment, the deemed cost for subsequent accounting is the fair value at
the date of change in use. If owner-occupied property, plant and equipment is reclassified to investment property, the
Company accounts for such property in accordance with the policy stated under property, plant and equipment up to the
date of change in use.
6.1.3.6. Leased Assets and Lease Liabilities
A. Company as a lessee
At inception of a contract, the Company assesses whether the contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Company (as a lessee) applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use
assets representing the right to use the underlying assets.
Right of use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses,
and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of the initial measurement of the lease liability, initial direct costs
incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use
assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the
assets, as follows:
• Cars 3 years
• Buildings and structures 5 years
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a
purchase option, depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment.
Lease liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease
term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or
a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or
condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect the estimates of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease
term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used
to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
Short-term leases and leases of low-value assets
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The Company apply the short-term lease recognition exemption to its non-current-asset (i.e., those leases that have a lease
term of 12 months or less from the commencement date and do not contain a purchase option). Lease payments on short
term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
(B) The Company as a lessor:
The Company’s buildings that are leased under the operating lease agreements are accounted in the statement of financial
position as investment property. Lease income is recognised on a straight line basis over the lease period.
6.1.3.7. Investments in subsidiaries and joint operations
Investments in subsidiaries are accounted for at cost less impairment.
A joint arrangement is an arrangement of which two or more parties have joint control. These arrangement has the following
characteristics:
• The parties are bound by a contractual arrangement.
• The contractual arrangement gives two or more of those parties joint control of the arrangement.
• The Company has a joint arrangement that is a joint operation (Note 16).
• As a joint operator the Company recognises in relation to its interest in a joint operation:
• its assets, including its share of any assets held jointly;
• its liabilities, including its share of any liabilities incurred jointly;
• its revenue from the sale of its share of the output arising from the joint operation;
• its share of the revenue from the sale of the output by the joint operation; and
• its expenses, including its share of any expenses incurred jointly.
6.1.3.8. Inventories
Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the first-in first-
out (FIFO) principle, and includes expenditure incurred in acquiring the inventories, production and other costs incurred in
bringing them to their existing location and condition. Net realizable value is the estimated selling price in the ordinary
course of business, less the estimated costs of completion and selling expenses.
Inventories related to ongoing construction projects are accounted for under inventories caption in the statement of financial
position until inventories are used in construction process and further are accounted for as cost of sales. Project related
inventories’ accounting policy is the same as stated above. Unrealisable inventory is fully written-off.
6.1.3.9. Cash and cash equivalents
Cash includes cash at banks. Cash equivalents are short-term, highly liquid investments that are readily convertible to
known amounts of cash with original maturities of 3 months or less and that are subject to an insignificant risk of change in
value.
In the statement of cash flows, cash and cash equivalents are considered to be cash in the current bank accounts and
deposits the terms of which on the day of signing the contract are no less than three months.
6.1.3.10. Impairment of non-financial assets
The carrying amounts of non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable
amount is estimated.
The recoverable amount is the greater of the asset’s value in use and its fair value less costs to sell. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing,
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assets are grouped together into the smallest group of assets that generates cash flows from continuing use that are largely
independent of the cash flows of other assets or groups of assets.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated
recoverable amount. An impairment loss on a non-revalued asset is recognised in profit or loss. However, an impairment
loss on a revalued asset is recognised in other comprehensive income to the extent that the impairment loss does not
exceed the amount in the revaluation surplus for that same asset. Such an impairment loss on a revalued asset reduces
the revaluation surplus for that asset.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine
the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been
recognised.
6.1.3.11. Dividends
Dividends are recognised as a liability in the period in which they are declared.
6.1.3.12. Provisions
A provision is recognised in the statement of financial position if, as a result of a past event, the Company has a present
legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are determined by discounting the expected future cash flows to their present
value at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability.
A provision for warranties is recognised when the underlying construction services are sold, i.e. assurance type warranties,
as the Company does not grant additional warranties to the customers. The provision is based on historical warranty costs
data and probabilities.
6.1.3.13. Employee benefits
The Company does not have any defined contribution and benefit plans and has no share-based payment schemes. Post-
employment obligations to employees retired on pension are borne by the State.
In accordance with the requirements of the Labour Code of the Republic of Lithuania, each employee leaving the Company
at the age of retirement is entitled to a one-off payment amounting to two-month salary. The past service costs are
recognised as an expense on a straight-line basis over the average period until the benefits become vested. Any gains or
losses appearing as a result of changes in terms of benefits (curtailment or settlement) are recognised in the statement of
comprehensive income as incurred. Current year cost of employee benefits is recognised as incurred in the statement of
comprehensive income. The above mentioned employee benefit obligation is calculated based on actuarial assumptions,
using the projected unit credit method. Obligation is recognised in the statement of financial position and reflects the present
value of these benefits on the preparation date of the statement of financial position. Present value of the non-current
obligation to employees is determined by discounting estimated future cash flows using the discount rate which reflects the
interest rate of the Government bonds of the same currency and similar maturity as the employment benefits. Actuarial
gains and losses are recognised in other comprehensive income as incurred.
Short-term employee benefits are recognised as a current expense in the period when employees render the services.
These include salaries and wages, social security contributions, bonuses, paid holidays and other benefits.
6.1.3.14. Revenue
Revenue from contracts with customers
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The Company’s primary business activity is the construction of buildings, structures, plant and equipment and
communication facilities. Revenue from contracts with customers is recognised at the amount to which the entity expects
to be entitled to in return for the sale of goods or services when a control of goods or services is transferred to the customer.
Generally, the Company does not have significant variable components of remuneration in its contracts with customers.
The Company has concluded that generally it is the principal in its construction services contracts even when the
subcontractors are used in the implementation of the projects, because the Company:
• controls the goods and services before transferring them to the customer;
• is responsible for the overall performance of the contract with the customer and is exposed to the risk of default;
• the entity has discretion in establishing the price.
Performance obligations arising from the construction contracts with customers are fulfilled over time and respectively
revenue from the construction and installation services are recognised over time if any of the following criteria are met: (a)
the customer simultaneously receives and consumes the benefits provided by the Company’s performance; (b) the
Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or
(c) the Company’s performance does not create an asset with an alternative use and the Company has an enforceable right
to payment for performance completed to date.
When the Company can reasonably measure its progress towards complete satisfaction of the performance obligation, the
Company recognises revenue and expenses in relation to each construction contract over time, based on the progress of
performance. The progress of performance is assessed based on the proportion of the costs incurred in fulfilling the contract
up to date over to the total estimated costs of the construction contract.
When the outcome of a contract cannot be estimated reliably (for example, in the early stages of a contract), only the portion
of the contract costs incurred that is expected to be recovered is recognised as revenue.
Contract modification (scope or price or both) are accounted for as a separate contract if the scope of the contract increases
because of the addition of promised goods or services that are distinct and the price of the contract increases by an amount
of consideration that reflects the Group’s stand-alone selling prices of the additional promised goods or services in the
circumstances of the particular contract. Otherwise the contract modification is accounted as (a) termination of the existing
contract and the creation of a new contract, if the remaining goods or services are distinct from the goods or services
transferred on or before the date of the contract modification, or (b) part of the existing contract if the remaining goods or
services are not distinct and, therefore, form part of a single performance obligation that is partially satisfied at the date of
the contract modification. The effect that the contract modification has on the transaction price, and on the Company's
measure of progress towards complete satisfaction of the performance obligation, is recognised as an adjustment to
revenue (either as an increase in or a reduction of revenue) at the date of the contract modification.
Provisions for loss making contracts are recognised when the Company has a present obligation (legal or constructive) to
complete the construction contract for the third party for the price that is lower than the total estimated cost to perform the
contract as of the date of the financial statements. The difference between the contract price and the total estimated cost
of delivery under the contract is recognised in the statement of comprehensive income at the reporting date. Where the
contract costs are expected to exceed contract revenue, the loss is recognised immediately in profit or loss. When
performing the contracts the Company may receive short-term prepayments from its customers. Applying the practical
expedient, the Company is not adjusting the price allocation by the financing component, if at the inception of the contract
it is expected that the time period from the customer payment for goods/services until the delivery of these goods/services
will not exceed one year.
Balances under contract
Contract assets
Contract asset is the right of the Company to remuneration in exchange for the goods or services that have been transferred
to the customer. If the Company performs the contract by transferring goods or services to a customer before the customer
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pays consideration or before the Company’s right to amount of consideration is unconditional, the Company reports such a
right to consideration as a contract asset, except for any amounts reported as receivables.
Receivables
Receivable represents the Company’s right to an amount of consideration that is unconditional, i.e., only the passage of
time is required before payment of the consideration is due. Receivables are accounted for in accordance with IFRS 9 (Note
6.1.3.2).
Contract liability
A contract liability is the Company’s obligation to transfer goods or services to a customer for which the Company has
received consideration (or an amount of consideration is due) from the customer. Contract liability is recognised as revenue
when the Company performs under the contract.
Revenue from the sale of other services or goods is recognised when the services are rendered or control of the inventory
is transferred, but such transactions are relatively insignificant.
6.1.3.15. Finance Income and Expense
Financial income comprises interest income and dividend income. Interest income is recognised as it accrues, using the
effective interest method. Dividend income is recognised on the date that the Company’s right to receive payment is
established. Financial costs comprise interest expense and other financial expenses. All borrowing costs are recognised
using the effective interest method. Foreign currency gains and losses are reported on a net basis in profit or loss.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective assets.
Other borrowing costs are expensed as incurred.
6.1.3.16. Income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the
extent that it relates to items recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the reporting date.
Deferred taxes are calculated using the balance sheet liability method. Deferred tax is recognised, providing for temporary
differences between the carrying values of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. Deferred tax assets and liabilities are measured using the tax rates expected to apply to taxable income
in the years in which those temporary differences are expected to be recovered or settled based on tax rates enacted or
substantially enacted at the date of the statement of financial position.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which
the asset can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is
no longer probable that the related tax benefit will be realised.
Starting from 1 January 2014, the tax loss carried forward cannot exceed 70% of the taxable profit of current financial year
in Lithuania. Tax losses can be carried forward for indefinite period, except for the losses incurred as a result of disposal of
securities and/or derivative financial instruments. Such carrying forward is disrupted if the company changes its activities
due to which these losses were incurred except when the entity does not continue its activities due to reasons which do not
depend on the Company itself. The losses from disposal of securities and/or derivative financial instruments can be carried
forward for 5 consecutive years and can only be used to reduce the taxable income earned from the transactions of the
same nature.
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6.1.3.17. Earnings per share
The Company presents basic and diluted earnings per share (EPS) data. Basic EPS is calculated by dividing the profit or
loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding
during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the
weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, such as
convertible notes and share options granted to employees.
The Company has no dilutive potential ordinary shares. The diluted earnings per share are the same as the basic earnings
per share.
6.1.3.18. Segments
An operating segment is a component of 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 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. For management purpose, the Company is considered as a single construction activity
business segment. Due to this no additional disclosures are presented in these financial statements regarding segments
on the Company level.
In 2024 and 2023, the Company also does not distinguish geographical segments, as the Company’s income from foreign
countries did not account for more than 10% of the total income and all its non-current assets are also located in Lithuania.
6.1.3.19. Assessment of fair value
A number of the Company’s accounting policies and disclosures require the determination of fair value, for both financial
and non-financial assets and liabilities. 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 Company has access at that date. The fair value of a liability reflects its non-
performance risk. Fair values are obtained from quoted market prices, discounted cash flow models and option pricing
models as appropriate.
When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair
values are categorised into 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 in 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 Company recognises 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 methods and assumptions
described in Notes 6.1.13, 6.1.15, 6.1.16 and 6.1.29. Where applicable, further information about the assumptions made in
determining fair values is disclosed in the notes specific to that asset or liability.
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6.1.3.20. Inter-company offsetting
When preparing the financial statements, assets and liabilities as well as revenues and expenses are not set off except for
the cases where the International Financial Reporting Standards specifically require such off-setting.
6.1.4. Financial Risk Management
General information
The Company has exposure to the following financial risks: credit risk, liquidity risk and market risk. This note presents
information about 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 Company’s risk management framework.
The Company’s risk management policies are established to identify and analyse the risks faced by 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 Company’s activities. The Company aims to develop
a disciplined and constructive control environment in which all employees understand their roles and liabilities.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contract liabilities, and
arises principally from the Company’s trade receivables and loans granted.
The Company controls credit risk by credit policies and procedures. The Company has established a credit policy under
which each new customer is analysed for creditworthiness before the standard payment terms and conditions are offered.
Customers that fail to meet the benchmark creditworthiness may transact with the Company only on a prepayment basis.
The measure of credit risk is the maximum credit risk for each class of financial instruments, which is equal to their carrying
amount. The maximum amount of exposure to credit risk in relation to particular classes corresponds to their carrying
amount.
The maximum exposure to credit risk is set out below:
(EUR thousand)
2024
2023
Trade Receivables and Contract Assets
10,175
16,289
Loans granted
8,006
7,805
Cash and cash equivalents
1,276
5,125
Total
19,457
29,219
Trade receivables and contract assets:
(EUR thousand)
2024
2023
Municipalities and state institutions
1,094
1,268
Legal persons
9,081
15,021
Total trade receivables and contract assets
10,175
16,289
In the statement of financial position, trade receivables and contract assets (i.e. accrued income on the stage of completion)
are accounted for under the caption “Non-current and current trade receivables and contract assets”, as disclosed in Note
6.1.19.
Breakdown of the largest credit risks related to trade receivables and contract assets by customers as at the reporting date:
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(EUR thousand)
2024
%
2023
%
Client 1
1,499
14.7
4,212
25.9
Customer No 2
1,240
12.2
3,122
19.2
Customer No 3
1,094
10.8
1,142
7.0
Customer No 4
869
8.5
1,116
6.8
Customer No 5
612
6.0
747
4.6
Customer No 6
505
5.0
718
4.4
Customer No 7
484
4.8
441
2.7
Other customers
4,713
46.3
4,847
29.7
Impairment
(841)
(8.3)
(56)
(0.3)
Total
10,175
100
16,289
100
Breakdown of trade receivables and contract assets by geographic regions:
(EUR thousand)
2024
2023
Local market (Lithuania)
10,175
16,276
Latvia
-
-
Other
-
13
Total
10,175
16,289
Ageing of (gross) trade receivables as at the reporting date can be specified as follows:
(EUR thousand)
Impairment
2023
Impairment
Not overdue
8,304
13,627
Overdue 0-30 days
1,218
1,117
Overdue 30-90 days
272
813
More than 90 days
1,222
841
788
56
Total
11,016
841
16,345
56
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade
receivables.
The main components of this allowance are specific losses that relate to individually significant accounts receivable and
expected credit losses recognised using ECLs method (in line with IFRS 9). Methodology used for establishing the
allowance is reviewed regularly to reduce any differences between loss estimate and actual loss experienced.
Maturity and ageing of loans granted is presented in Note 6.1.17.
Cash and cash equivalents comprise cash on hand and at bank; therefore, the related credit risk is relatively low.
Apart from the impairment already recognised as at 31 December 2024, the management considers that there is no risk of
material loss to the Company.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s
approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Company’s reputation. Typically, the Company ensures that it has sufficient cash on demand to meet expected
operating expenses, including the servicing of borrowings.
On 20 February 2023, the agreement was signed with the Tax Authority on the payment of the fine imposed in equal
instalments over period of four years. The fee payable to the Competition Council is accounted for under the non-current
and current liabilities.
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Payment terms of financial liabilities, including calculated interest, as to the agreements, as at 31 December 2024 are
presented below:
(EUR thousand)
Carrying
amount
Contractual net cash
flows
Up to 6
months
More than 6
months
Liabilities
Trade payables
11,328
11,328
11,328
-
Lease liabilities
302
312
154
158
Overdraft
2,366
2,472
-
2,472
Fine payable in accordance the decision of the Competition
Council
3,016
3,140
746
2,394
Total
17,012
17,252
12,228
5,024
Payment terms of financial liabilities, including calculated interest, as to the agreements, as at 31 December 2023 are
presented below:
(EUR thousand)
Carrying
amount
Contractual net cash
flows
Up to 6
months
More than 6
months
Liabilities
Trade payables
14,595
14,595
14,595
-
Lease liabilities
484
493
134
359
Overdraft
4,120
4,253
4,253
-
Fine payable in accordance the decision of the Competition
Council
4,409
4,671
772
3,899
23,608
24,012
19,754
4,258
On 17 June 2021, an overdraft agreement was signed with bank with the limit of EUR 5 million. The agreement was
extended until 30 September 2025. As at 31 December 2024, the balance of overdraft limit utilised amounted to EUR
2,366 thousand (Note 6.1.23).
Change in Liabilities Arising from Financing Activities
(EUR thousand)
31/12/2023
Accrued
Cash
inflows/outflows
Other
31/12/2024
Loans received
4,120
26,998
(28,752)
-
2,366
Dividends
28
-
-
-
28
Lease liabilities
484
156
(338)
-
302
Total
4,632
27,154
(29,090)
-
2,696
Market risk
Market risk is the risk that changes in market prices, such as changes in foreign currency rates and interest rates will affect
the results of the Company. The purpose of the market risk management is to manage open positions of risk in order to
optimize returns. As at 31 December 2024 and 2023, the Company did not use any derivatives.
Currency risk. The Company is exposed to the significant risk of changes in foreign currency rates, since sales and
receivables, purchases, payables and borrowings are denominated in a currency other than the functional currency are not
material. The majority of monetary assets and liabilities as at 31 December 2024 and 2023 were denominated in EUR.
Interest rate risk. The Company’s issued and received loans and borrowings are subject to variable interest rates linked
to EURIBOR. No financial instruments are used by the Company to manage the risk. Taking into consideration the current
level of issued loans, the change of interest rate would not have a material effect as disclosed below.
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The Company’s financial assets and borrowings subject to variable interest rates outstanding as of 31 December 2024
were as follows:
Contract
currency
2024
2023
Long-term loans granted
EUR thousand
6,837
6,378
Short-term loans granted
EUR thousand
1,169
1,427
Total
8,006
7,805
Loans received (overdraft)
EUR thousand
2,366
4,120
Total
2,366
4,120
• With an increase in the interest rate by 0.5% as at 31 December 2024, the Company’s net profit would increase by
approximately EUR 448 thousand.
• With an increase in the interest rate by 0.5% as at 31 December 2023, the Company’s net profit would increase by
approximately EUR 512 thousand.
• With an increase in the interest rate by 0.5% as at 31 December 2024, the Company’s net profit would decrease
by approx. EUR 142 thousand due to the loan received.
• With an increase in the interest rate by 0.5% as at 31 December 2023, the Company’s net profit would decrease
by approximately EUR 267 thousand due to the loan received.
Capital management
The Company’s Boards policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. The Company’s Board monitors the return on capital and proposes the
level of dividends to ordinary shareholders based on the Company’s financial results and strategic plans.
The Board also aims to keep balance between higher return, which could be available if there was higher level of borrowed
“funds” and security, which is provided by higher level of equity. The Company adheres to the requirement set in the Law
on Companies of the Republic of Lithuania under which the equity of the Company must not be less than ½ of the issued
capital. As at 31 December 2024 and 2023, the Company was in line with this regulation. The Company’s capital
management policy did not change during the year.
For capital management purpose, capital consists of share capital, retained earnings, revaluation reserve and legal reserve.
6.1.5. Revenue from Contracts with Customers
Revenue is derived from construction-installation work (approx. 98% in 2024 and 97% in 2023).
(EUR thousand)
2024
2023
Lithuania
71,875
79,141
Latvia
-
1,610
Sales in total
71,875
80,751
Revenue from the largest customer of the Company in 2024 amounted to approximately EUR 11,592 thousand (2023: EUR
17,234 thousand) of the Company’s total revenues.
In 2024, the Company recognised EUR 2,700 thousand of revenue from contracts with customers that were included to the
balance of contract liabilities at the beginning of the period (2023: EUR 2,531 thousand). Information on contracts
outstanding at the end of the financial year is disclosed in Note 6.1.19.
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6.1.6. Cost of sales
(EUR thousand)
2024
2023
Construction sub-contractors
39,230
38,735
Raw materials and consumables
13,411
18,644
Payroll expenses (Note 6.1.9)
9,956
10,943
Depreciation charge
194
240
Amortisation charge
1
2
Machinery expenses
1,244
1,686
Rent expenses (short term lease)
1,667
2,199
Onerous contracts
692
(413)
Other expenses
5,065
4,873
Total cost of sales
71,460
76,909
6.1.7. Selling expenses
(EUR thousand)
2024
2023
Advertising and other expenses
18
35
Payroll expenses (Note 6.1.9)
404
355
Total selling expenses
422
390
6.1.8. Administrative expenses
(EUR thousand)
2024
2023
Payroll expenses (Note 6.1.9)
4,442
4,938
Purchased services for administrative use
1,026
1,523
Rent expenses
287
302
Depreciation charge
204
268
Operating taxes other than income tax
140
119
Audit expenses
84
35
Sponsorship
7
13
Amortisation charge
21
21
Reimbursement of costs under the Settlement Agreement
(1,200)
-
Total expenses of impairment (reversal of impairment) of trade
receivables, contract assets and other receivables:
831
(20)
Impairment (reversal of impairment) of trade receivables (Note 6.1.19)
-
(28)
9.9 Decrease (increase) in other amounts receivable
831
8
Other expenses
806
474
Total administrative expenses
6,648
7,673
On 23 January 2024, PST Group AB (PST), former managing director and insurers R&Q Syndicate Management Limited
and Marco International Insurance Company Limited signed a settlement agreements, whereby amicably discontinuing all
court and arbitration disputes regarding the civil liability of the former managing director of PST (regarding the fine imposed
by the Competition Council of the Republic of Lithuania under the resolution No 2S-11 (2017) of 20 December 2017) and
the payment of the related insurance benefit. In line with the settlement agreements, the insurers paid EUR 1,200,000 in
favour of PST, and PST waived all its claims against the insurers and the former managing director. The indicated amount
was charged to operating expenses.
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6.1.9. Payroll expenses
(EUR thousand)
2024
2023
Wages and salaries
14,654
15,293
Social security contributions
274
293
Daily allowances and incapacity benefits
452
674
Change in accrued vacation reserve and bonuses
(538)
52
Change in pension provision (Notes 6.1.25 and 6.1.27)
(12)
(17)
Total salary related expenses
14,830
16,295
Recognised in:
Cost of sales
9,956
10,943
Administrative expenses
4,442
4,938
Selling expenses
404
355
Other operating expenses
28
59
Total salary related expenses
14,830
16,295
6.1.10. Other Income and Expenses
(EUR thousand)
2024
2023
Gain from sale of property, plant and equipment
246
51
Rental income (Note 6.1.15)
522
466
Gain on revaluation of assets
180
140
Other revenue
412
694
Total other income
1,360
1,351
Depreciation of rented property
(87)
(139)
Other expenses
(343)
(620)
Total other expenses
(430)
(759)
Total other income and expenses, net
930
592
6.1.11. Finance Income and Expense
(EUR thousand)
2024
2023
Interest income
455
428
Other finance income
1,023
865
Total finance income
1478
1,293
Loan interest expenses
(440)
(375)
Other expenses
(349)
(8)
Total finance expense
(789)
(383)
Total finance income and expense, net
689
910
6.1.12. Income tax
Income tax expenses (benefit):
(EUR thousand)
2024
2023
Current income tax expense
-
-
Change in deferred tax
(113)
(440)
Total income tax expense
(113)
(440)
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In 2024 and 2023, the Company applied a standard 15% rate in Lithuania, a 22% rate in the Kingdom of Sweden and 0%
rate in Latvia. Reconciliation of effective tax rate:
(EUR thousand)
2024
2023
Profit (loss) before tax
(5,036)
(2,279)
Income tax expense (benefit) applying the
Company’s tax rate in Lithuania
15,0%
(576)
15,0%
(342)
Non-deductible expenses
267
356
Non-taxable income
(271)
(522)
Change in deferred tax asset’s realisation allowance
646
68
(2.24) %
(113)
(19.3)%
(440)
Deferred tax:
(EUR thousand)
2024
2023
Temporary
differences
Deferred tax
Temporary
differences
Deferred tax
Impairment of trade and other receivables
77
12
122
19
Accrued bonuses
132
21
267
40
Pension provision
265
43
278
42
Vacation reserve
23
4
30
4
Warranty provision
369
59
270
40
Provisions for deferred expenses
76
12
0
0
Inventory write-off to net realisable value
96
15
91
14
Tax loss carry forward (indefinite period)
8,684
1,389
8,684
1,303
Onerous contracts
794
127
102
15
Total deferred tax assets
1,682
1,477
Not recognised deferred tax assets (trade
receivable allowance)
(10)
(10)
Deferred tax asset recognised
1,672
1,467
Revaluation of land and buildings
(1,866)
(299)
(2,144)
(322)
Difference in investment property value
(2,306)
(369)
(1,694)
(254)
Deferred tax liability
(668)
(576)
Deferred tax, net
1,004
891
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related
tax benefit will be realised. Part of deferred tax has not been recognised due to uncertainty of deferred tax realisation.
Change in deferred income tax:
(EUR thousand)
2024
2023
Net deferred tax as at 1 January
891
451
Amounts recognised in other comprehensive income
-
-
Recognised in profit or loss
113
440
Net deferred tax as at 31 December
1,004
891
The Company does not recognise deferred tax in respect of taxable temporary differences associated with investments in
subsidiaries as the Company controls timing of the reversal of the temporary differences and it is probable that the
temporary differences will not reverse in the foreseeable future.
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144
6.1.13. Property, Plant and Equipment
(EUR thousand)
2024
2023
Depreciation recognised in:
Cost of sales
194
240
Operating expenses
218
268
Other expenses
87
139
Total depreciation
499
647
Land and buildings are stated at revalued amount. The last external revaluation was performed on 31 December 2022
based on the estimates on possible market prices of the Company’s land and buildings provided by independent appraisers,
having appropriate recognised professional qualifications and necessary experience in valuation of property at certain
location and of certain category. The valuation was performed using the comparable value approach. Significant
unobservable data was used in fair value measurement, i.e. price per square meter/are. The fair value would increase with
an increase in price per square meter/are and decrease with a decrease in price per square meter/are.
If the buildings and land were stated at cost model, their net book value as at 31 December 2024 would be equal to EUR
1,328 thousand (as at 31 December 2023, EUR 1,526 thousand).
As at 31 December 2024, the acquisition cost of fully depreciated property, plant and equipment still in use amounted to
EUR 2,853 thousand, (as at 31 December 2023, EUR 2,927 thousand).
Land and buildings with the carrying amount of EUR 4,549 thousand as at 31 December 2024 (as at 31 December 2023,
EUR 6,327 thousand) have been pledged to banks and the state authorities (see Note 6.1.28).
(EUR thousand)
Land and
buildings
Machinery and
equipment
Vehicles
Fixtures and
fittings
Construction-in-
progress
Total
Cost (revalued carrying amount of land and
buildings)
3,795
2,452
1,874
495
20
8,636
Balance as at 1 January 2024
Additions
17
276
38
115
-
446
Reclassification
135
-
-
-
(20)
115
Asset written-off
(496)
(277)
(96)
(159)
-
(1,028)
Balance as at 31 December 2024
3,451
2,451
1,816
451
-
8,169
Balance as at 1 January 2023
3,840
2,594
1,759
546
-
8,739
Additions
311
184
116
20
631
Reclassification
(45)
-
-
-
-
(45)
Asset written-off
-
(453)
(69)
(167)
-
(689)
Balance as at 31 December 2023
3,795
2,452
1,874
495
20
8,636
Depreciation and impairment
Balance as at 1 January 2024
874
2,044
1,515
237
-
4,670
Depreciation for the year
208
104
85
102
-
499
Depreciation of asset written-off
(345)
(278)
(83)
(134)
-
(840)
Balance as at 31 December 2024
737
1,870
1,517
205
-
4,329
Balance as at 1 January 2023
650
2,287
1,467
284
-
4,688
Depreciation for the year
224
196
114
113
-
647
Depreciation of asset written-off
(439)
(66)
(160)
-
(665)
-
Balance as at 31 December 2023
874
2,044
1,515
237
-
4,670
Residual value
As at 1 January 2024
2921
408
359
258
20
3,966
As at 31 December 2024
2,714
581
299
246
-
3,840
As at 1 January 2023
3,190
307
292
262
-
4,051
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145
6.1.14. Intangible Assets
(EUR thousand)
Software
Other assets
Total
Cost
Balance as at 1 January 2024
211
-
211
Additions
5
-
5
Asset written-off
(7)
-
(7)
Balance as at 31 December 2024
209
-
209
Balance as at 1 January 2023
202
-
202
Additions
9
-
9
Asset written-off
-
-
-
Balance as at 31 December 2023
211
-
211
Amortisation and impairment
Balance as at 1 January 2024
61
-
61
Amortisation charge for the year
22
-
22
Amortisation of asset written-off
(7)
-
(7)
-
Balance as at 31 December 2024
76
-
76
Balance as at 1 January 2023
38
-
38
Amortisation charge for the year
23
-
23
Amortisation of asset written-off
Balance as at 31 December 2023
61
-
61
Residual value
As at 1 January 2024
150
-
150
As at 31 December 2024
133
-
133
As at 1 January 2023
164
-
164
(EUR thousand)
2024
2023
Amortisation recognised in:
Cost of sales
1
2
Administrative expenses
21
21
Total amortisation
22
23
The Company did not have any intangible assets fully amortised but still in use neither as at 31 December 2024, nor as at
31 December 2023.
6.1.15. Investment Property
(EUR thousand)
2024
2023
Balance as at 1 January
3,926
3,741
Reclassification from (to) property, plant and equipment
(115)
45
Change in fair value
180
140
Balance as at 31 December
3,991
3,926
In 2015, the Company acquired a 14-floor hotel Panevėžys located in Panevėžys, 16.74% of which is rented out to third
parties, and the rest of the hotel is not used. The Company has no detailed plans regarding the use of the remaining part
of the building yet; however, the building is not planned to be further used in the Company’s activities; therefore, the whole
building is classified as an investment property.
The fair value measurement has been determined by valuation of the building carried out by the independent property
appraisers Ober-Haus UAB, having appropriate professional qualification and relevant valuation experience. The
discounted cash flow method was used in the valuation (discount rate – 9%, exit yield – 7%, occupation rate of premises
adequate for use – 60%; the same assumptions were used in 2024 and 2023).
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The identified fair value of the above investment property of EUR 1,870 thousand (2023: EUR 1,690 thousand) was
attributed to Level 3 in the fair value hierarchy.
At the end of the financial year, future minimum lease payments receivable under non-cancellable lease agreements were
the following: EUR 138 thousand in less than one year, EUR 19 thousand between one and five years (as at 31 December
2023: EUR 154 thousand in less than one year, EUR 70 thousand between one and five years). Revenue from the hotel
premises rent in 2024 amounted to EUR 155 thousand (2023: EUR 132 thousand) and was accounted for under other
income (see Note 10).
In addition, the Company reclassified the operational buildings, storages and other premises, leased to both subsidiaries
and third parties, to investment property. Calculated fair value of these buildings as at 31 December 2022 amounted to EUR
2,236 thousand, which was evaluated in accordance with the reports of independent real estate appraisers and a
percentage of leased space. The assessment of assets was carried out by Corporation Matininkai UAB. Assets were
evaluated using comparable and income methods, with regard to the larger value. An average discount rate of 10.56% was
applied to income method in accordance with weighted average cost of capital. The latter investment property was attributed
to Level 3 in fair value hierarchy. The management assessed that the fair value of the investment property did not change
significantly.
Expected rental receivables of this investment property under non-cancellable contracts as at 31 December 2024 amounted
to: EUR 265 thousand in less than one year, EUR 728 thousand between one and five years (as at 31 December 2023:
EUR 293 thousand in less than one year, EUR 629 thousand between one and five years). Revenue from lease in 2024
amounted to EUR 303 thousand (in 2023: EUR 334 thousand) and was accounted for under other income.
6.1.16. Investments in subsidiaries and joint operations
Subsidiaries
(EUR thousand)
2024
2023
Subsidiary
Ownership
interest
Cost
Ownership
interest
Cost
PST Investicijos UAB, Verkių st. 25C, Vilnius
69,0%
305*
69,0%
305*
Šeškinės Projektai UAB, Verkių st. 25C, Vilnius
100%
1,600
100%
1,600
Ateities Projektai UAB, Verkių st. 25C, Vilnius
100%
400
100%
400
Tauro Apartamentai UAB, Verkių st. 25C-1, Vilnius
100%
2
100%
2
Hustal UAB, Tinklų st. 7, Panevėžys
100%
34
100%
34
Vekada UAB, Tinklų st. 7, Panevėžys
100%
274**
95,6%
225
Stadus UAB, Pramonės st. 5, Panevėžys
100%
145
100%
145
Alinita UAB, Tinklų st. 7, Panevėžys
100%
70
100%
70
SIA PS Trests, Skultes iela 28, Skulte, Marupes nov., Latvia
100%
4
100%
4
Kingsbud Sp.z.o.o, A. Patli st. 12, 16-400 Suwalki, Poland
100%
1
100%
1
Aliuminio Fasadai UAB, Pramonės st. 5, Panevėžys
100%
250
100%
250
Impairment:
PST Investicijos UAB
(207)
(112)
Aliuminio Fasadai UAB
(250)
-
Alinita UAB
(70)
(70)
PS Trests SIA
(4)
(4)
Total investments
2,554
2,850
* In 2024, the General Meeting of Shareholders of PST Investicijos UAB made a decision to liquidate the company. In
2023, the decision was made to pay EUR 4,576 thousand in dividends to the shareholders, by reducing the issued capital
of PST Investicijos UAB.
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147
** In 2024, the Company bought-up the shares in the subsidiary Vekada UAB from natural persons, increasing the
financial assets held up to 100%.
Financial information on subsidiaries can be specified as follows:
Subsidiaries of PST Group AB
(EUR thousand)
Type of activity
Equity
As at 31
December 2024
Net profit (loss)
for 2023
Equity
As at 31
December 2023
Net profit (loss)
for 2023
PST Investicijos UAB
Real estate development
142
(73)
250
5,502
Vekada UAB
Construction: electrical
installation
608
(243)
851
(182)
Stadus UAB
Construction: wooden houses
1,534
243
1,892
884
Alinita UAB
Construction: conditioning
equipment
(967)
(719)
(251)
18
Hustal UAB
Trade, construction
2,785
123
3,038
1,243
Aliuminio Fasadai UAB
Production of aluminium profile
systems
(1,023)
(825)
(198)
(8)
PS Trests SIA
Construction
(213)
(31)
(182)
11
Šeškinės Projektai UAB
Real estate development
8,853
572
8,280
701
Kingsbud Sp.z.o.o
Trade
688
107
581
141
Ateities Projektai UAB
Real estate development
498
(122)
619
216
Tauro Apartamentai UAB
Real estate development
3
-
3
-
As at 31 December 2024 and 2023, based on the management’s assessment, the investments in Alinita UAB, Aliuminio
Fasadai UAB and PS Trests SIA were impaired, therefore, a 100% impairment loss was recognised. The management
estimated the recoverable amount for investment into PST Investicijos UAB as at 31 December 2024 and 2023 as described
below. There were no impairment indications for other investments as at 31 December 2024 and 2023.
As at 31 December 2024, PST Investicijos UAB recoverable amount was estimated as follows:
Carrying value of PST Investicijos UAB as at 31 December 2023 (cost less impairment recognised)
193
Other assets less liabilities at estimated fair value
142
Recoverable value of PST Investicijos UAB
142
Number of shares held by PST Group AB
68,974%
PST Investicijos UAB recoverable value attributed to PST Group AB
98
Estimated potential impairment as at 31 December 2024.
(95)
Estimated impairment until 31 December 2023
(112)
Impairment of PST Investicijos UAB recognised during 2024
(95)
Total impairment for as of 31 December 2024
(207)
As at 31 December 2023, PST Investicijos UAB recoverable amount was estimated as follows:
Carrying value of PST Investicijos UAB as at 31 December 2022 (cost less impairment recognised)
193
Other assets less liabilities at estimated fair value
250
Recoverable value of PST Investicijos UAB
250
Number of shares held by PST Group AB
68,974%
PST Investicijos UAB recoverable value attributed to PST Group AB
172
Estimated potential impairment as at 31 December 2023.
(20)
Estimated impairment until 31 December 2022
(5,558)
Reduction in financial assets of PST investicijos UAB by making payments to shareholders
3,127
Reduction in financial assets of PST investicijos UAB by covering losses
2 319
Total impairment for as of 31 December 2023
(112)
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148
Estimation of the recoverable amount of investment made by PST Investicijos UAB was mainly based on the real estate
project, which was developed by ZAO ISK Baltevromarket in Kaliningrad. The subsidiary ZAO ISK Baltevromarket
(Kaliningrad) of PST investicijos UAB was removed from the register on 30 May 2023.
Joint operations
In 2016, the Company concluded the agreement with limited liability company SIA ARMS GROUP, Gobu iela 1-129, Baloži,
Kekavas novads, Latvia, regarding joint operations and several liability for newly established general partnership enterprise
PST Un Arms. General partnership enterprise PST Un Arms is established for certain project developed in Latvia. The
development of the project was finalised in 2021. As of 29 February 2024, the operations of a general partnership enterprise
PST Un Arms have been suspended, and, as of 4 March 2024, it is not permissable to engage in transactions.
Under this agreement, 50% of operating expenses, assets and liabilities of PST Un Arms belong to the Company and these
amounts were included in these financial statements of the Company.
General information of PST Un Arms:
(EUR thousand)
2024
2023
Total assets
14
14
Total liabilities
3
3
Equity
11
11
Revenue
-
-
Net result
-
-
6.1.17. Long-term and short-term loans granted
(EUR thousand)
Interest rate
Maturity
2024
2023
Šeškinės Projektai UAB
Variable interest
As at 1 July
2026
6,837
6,378
Short-term loans
Ateities Projektai UAB
Variable interest
As at 31
December
2024
1,169
1,379
Kingsbud Sp.z.o.o
Fixed interest
As at 31
December
2023
-
48
Total
8,006
7,805
As at 31 December 2024 and 2023, the recoverability of loans was assessed under the principles disclosed in Note 6.1.3.2,
and the principal assumptions that impact the assessment are the same as disclosed in Note 6.1.16.
6.1.18. Inventories
(EUR thousand)
2024
2023
Raw materials and consumables
804
1,359
Projects under development
3,376
3,366
Write-down to net realisable value
(96)
(91)
Total inventories
4,084
4,634
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In 2024 and 2023, the change in write-down of inventory to the net realizable value was accounted for in administrative
expenses.
The net realizable value of the development project in Vilnius (Kudirkos St.) by PST group AB was determined based on a
consultation with the real estate appraiser "Ober-Haus Nekilnojamas Turtas" regarding potential market prices as of
December 2, 2024. The residual value method was applied. In December 2024, the Group's board decided to sell the
development project in Vilnius (Kudirkos St.).
6.1.19. Trade Receivables and Contract Assets
(EUR thousand)
2024
2023
Trade receivables
7,282
12,729
Contract assets (accrued income based on the stage of completion)
2,700
2,531
Receivables from subsidiaries
1,035
1,085
Impairment at the beginning of the year
(56)
(126)
Write-off of doubtful trade receivables
39
42
Repayment of doubtful trade receivables
6
7
Additional impairment/reversal during the period
(831)
21
Impairment at the end of the year
(842)
(56)
Total trade receivables and contract assets, net
10,175
16,289
The part of trade receivables due from customers is accounted for as non-current trade receivables: EUR 0 thousand as at
31 December 2024, EUR 1 thousand as at 31 December 2023. These amounts are related with non-current retentions as
indicated below.
As at 31 December 2024, trade receivables include retentions (retention – a fixed percentage of the total contract price
which shall be paid by the customer when the construction is completed and the bank guarantee in the amount of the
retained payment is provided or warranty document of the insurance Company is provided to the customer) of EUR 1,459
thousand (2023: EUR 1,400 thousand) relating to construction contracts in progress. For impairment of trade receivables
refer to Note 6.1.4.
Information about customers’ specific projects in progress as at 31 December 2024 and 2023:
(EUR thousand)
2024
2023
Sales by specific customers’ projects in progress, recognised in the statement of comprehensive income during the
year
31,661
47,711
Sales by specific customers’ projects in progress, recognised over the contract period
72,500
69,594
Expenses incurred for completing specific customers’ projects in progress, recognised in the statement
comprehensive income during the year
32,420
45,757
Expenses incurred for completing specific customers’ projects in progress, recognised in the statement
comprehensive income over the contract period
70,998
66,993
Contract assets (Note 19)
2,700
2,531
Contract liability (deferred income) under outstanding contracts at the year-end (Note 27)
596
728
Contract liability (payments from customers for purchase of inventories and etc.)
437
187
Provisions for onerous contracts (Note 27)
793
102
Trade receivables (under the caption of trade receivables and receivables from related parties)
4,097
11,525
As at 31 December 2024, the total contract amount attributed to performance obligations under the construction contracts
with customers that were outstanding (or partly outstanding) amounted to EUR 198,118 thousand (as at 31 December 2023,
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EUR 97,318 thousand). Most of these construction projects are expected to be completed and revenue recognised within
one year.
6.1.20. Other current assets
(EUR thousand)
2024
2023
Non-financial assets
Excess VAT
27
36
Accrued revenue from contracts
-
-
Other current assets
-
-
Non-financial assets, total
27
36
Other current assets, total
27
36
As at 31 December 2024 and 2023, the Company did not have any term deposits.
6.1.21. Cash and cash equivalents
(EUR thousand)
2024
2023
Cash at bank
1,276
5,125
Cash on hand
-
-
Cash and cash equivalents, total
1,276
5,125
As from 21 June 2022, the Company does not have any cash on hand.
6.1.22. Capital and reserves
The Company’s issued capital consists of 16,350,000 ordinary shares with a nominal value of 29 euro cents each. The
Company’s issued capital is fully paid. The holders of the ordinary shares are entitled to one vote per share in the
shareholders’ meeting and are entitled to receive dividends as declared from time to time and to capital repayment in case
of decrease of the capital. There were no changes in the issued capital in 2024 and 2023. The Company did not hold its
own shares as at 31 December 2024 and 2023. As at 31 December 2024 and 2023, the subsidiaries had not acquired any
shares of the Company.
The reserves were as follows:
(EUR thousand)
2024
2023
Revaluation reserve
1,568
1,822
Legal reserve
475
475
Total reserves
2,043
2,297
The revaluation reserve relates to the revaluation of land and buildings and is equal to the residual value of revaluation less
the related deferred tax liability.
Dynamics in revaluation reserve:
2024
2023
Revaluation reserve as at 1 January
1,822
2,035
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Revaluation
-
-
Depreciation of revaluation reserve
(254)
(213)
Revaluation reserve as at 31 December
1,568
1,822
Legal reserve is a compulsory reserve allocated in accordance with the legislation. An annual allocation of at least 5% of
the net profit is required until the reserve is not less than 10% of the issued capital. The reserve cannot be paid out in
dividends. Legal reserve at 31 December 2024 and 2023 accounted for 10% of the issued capital.
6.1.23. Loans
(EUR thousand)
Interest rate
Maturity
2024
2023
OP Corporate Bank plc. Lithuania
(overdraft)
Variable interest
As at 30
September 2025
2,366
4,120
Total
2,366
4,120
6.1.24. Trade payables
Payables to suppliers by geographic region:
(EUR thousand)
2024
2023
Local market (Lithuania)
11,154
14,033
Latvia
25
193
Ukraine
-
5
Poland
109
328
Germany
40
36
Total
11,328
14,595
Trade payables are non-interest bearing and normally settled on 30–90 day term.
6.1.25. Provisions
Warranty provisions are related to constructions built in 2019–2023. Based on the legislation of the Republic of Lithuania,
the Company has a warranty liability for construction works. The term of liability varies from 5 to 10 years after delivery of
construction works, i.e. an assurance type warranty and it is not provided as the Company’s separate service. Provision for
warranties is based on estimates made from historical data of actually incurred costs of warranty repairs.
Warranty
Pension
*
Other
Warranty
Pension*
Other
Change in provisions:
2024
2024
2024
2023
2023
2023
Provisions at the beginning of the year
270
278
109
471
295
-
Used and recognised in the cost of sales and
operating costs
(275)
(57)
(33)
(421)
(56)
-
Accrued during the year
374
45
-
220
39
109
Provisions at the end of the year
369
266
76
270
278
109
* Represents current and non-current part of provision.
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6.1.26. Right-of-Use Assets and Lease Liabilities
Dynamics of the Company’s right-of-use assets during the reporting period:
(EUR thousand)
Buildings
Cars
Total
Balance as at 1 January 2024
357
100
457
Additions
-
145
145
Asset written-off
-
(16)
(16)
Increase in value due to prior periods
-
16
16
Depreciation charge
(212)
(112)
(324)
Balance as at 31 December 2024
145
133
278
As at 1 January 2023
568
123
691
Additions
-
91
91
Asset written-off
-
-
-
Depreciation charge
(211)
(114)
(325)
Residual value as at 31 December 2023
357
100
457
The Company has long-term contracts with two lessors for lease of premises and cars.
Lease liabilities and their dynamics:
(EUR thousand)
2024
2023
Residual value at the beginning of the period
484
704
Contracts signed under IFRS 16
146
91
Contracts terminated (write-off of liability and accrued interest)
-
-
Accrued interest
10
11
Lease payments (principal portion and interest)
(338)
(322)
Residual value as at 31 December
302
484
Non-current lease liabilities
73
225
Current lease liabilities
229
259
The Company’s payments under leases were as follows:
(EUR thousand)
2024
2023
Minimum payments
Within first year
229
283
From two to five years
83
210
More than five years
-
-
Total
312
493
Future finance costs
Within first year
(5)
(7)
From two to five years
(5)
(2)
More than five years
-
-
Total
(10)
(9)
Residual value
302
484
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6.1.27. Contract and Other Liabilities
(EUR thousand)
2024
2023
Non-financial liabilities
Contract liability (deferred income) under contracts in progress (Note 19)
596
728
Contract liability (payments from customers for purchase of inventories and
etc.) (Note 19)
437
187
Liabilities related to the fine imposed by the Competition Council (Note 28)
3,016
4,409
Payable VAT
-
-
Accrued vacation reserve
1,284
1,687
Salaries and related taxes payable
1,077
1,210
Bonus accrual for employees
132
267
Provisions for onerous contracts
793
102
Other liabilities
121
112
Other liabilities, total
7,456
8,702
6.1.28. Off-balance Liabilities
Guarantees
As at 31 December 2024, the bank guarantees in the amount of EUR 12,283 thousand to third parties, related to obligations
under the construction contracts of the Company, were issued by banks on behalf of the Company (as at 31 December
2023, EUR 9,098 thousand). The guarantees expire in the period from 2 March 2025 to 30 August 2029. In addition, the
Company has guarantees issued by insurance companies for the amount of EUR 13,010 thousand, which are also related
to liabilities in the construction contracts (2023: EUR 13,996). The guarantees expire between 30 January 2025 and 6
December 2027. No additional liabilities are recorded in respect of these guarantees in the financial statements other than
estimated warranty reserve (Note 6.1.25).
As of December 31, 2024, the Company provided guarantees to insurance companies for guarantees received by its
subsidiaries in the amount of 700 thousand euros. The validity of these guarantees expires between May 24, 2025, and
November 25, 2027.
The property with a carrying amount of EUR 4,549 thousand as at 31 December 2024 (EUR 6,327 thousand as at 31
December 2023) has been pledged to bank and the state authority for the guarantee limit, bank guarantees issued and
deferral of payables. The guarantee limit amounts to EUR 15,000 thousand, the used amount as at 31 December 2024 is
EUR 12,283 thousand. The guarantee limit agreement is effective until 30 September 2025 with the possibility to issue
guarantees until 30 September 2025 that would be valid for 3 years following their date of issue. Guarantees are valid for
5 years following their date of issue if the amount does not exceed EUR 1,500 thousand. As at 31 December 2023, the
guarantee limit amounted to EUR 15,000 thousand, the balance withdrawn was EUR 9,098 thousand.
Legal contingencies
There is a civil case in Vilnius District Court based on DG Paupio Verslo Namai UAB (Plaintiff) action against PST Group
AB (civil case No e2-739-863/2024), under which the Plaintiff seeks that the Company and ERGO Insurance SE acting
through ERGO Insurance SE Lithuanian branch be ordered jointly and severally to pay EUR 827,917.61; the Company be
ordered to pay EUR 397,983.79; and the Company be ordered to pay 6% annual interest from the adjudged amount
calculated from the day when the civil case was lodged in the court until complete execution of the judgement and the costs
incurred.
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The dispute arose out of the plaintiff’s allegation that the Company did not properly carry out the exterior facade tile
installation works of the apartment building at Aukštaičių g. 10, Vilnius, resulting in several tiles falling off external facade.
On 24 October 2024, the Court of Appeal of Lithuania gave the decision to upheld the in part the order of the Vilnius Regional
Court of 3 April 2024, awarding EUR 455,323.10 in damages. The Company compensated for damages, however, DG
Paupio Verslo Namai UAB lodged cassation appeal. The case is pending.
6.1.29. Related-Party Transactions
Related parties are defined as shareholders, employees, members of the Management Board, their close relatives and
companies that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common
control with the Company, provided the listed relationship empowers one of the parties to exercise the control or significant
influence over the other party in making financial and operating decisions.
The Company had sales and purchase transactions during 2023–2024 with subsidiaries, the controlling company Hisk AB
and with its subsidiaries (reported under other caption “Other related companies” below). Transactions with related parties
during 2024 and 2023 were as follows:
(EUR thousand)
Type of transaction
2024
2023
Sales:
Companies under control
Šeškinės Projektai UAB
Interest, goods and services
639
424
Vekada UAB
Goods and services
27
14
Alinita UAB
Goods and services
465
339
PST Investicijos UAB
Services
2
19
Stadus UAB
Goods and services
77
52
Ateities Projektai UAB
Interest and services
79
80
Aliuminio Fasadai UAB
Services
560
428
Hustal UAB
Goods and services
343
171
PS Trests SIA
Services
-
102
Kingsbud Sp.z.o.o
Interest
-
7
Controlling company
Hisk AB
Goods and services
344
106
Other related companies
Goods and services
-
-
(EUR thousand)
Type of transaction
2024
2023
Purchases:
Companies under control
Alinita UAB
Goods and services
1,182
384
Kingsbud Sp.z.o.o
Goods and services
1,089
1,275
Vekada UAB
Goods and services
526
1,212
PS Trests SIA
Services
0
1,725
Aliuminio Fasadai UAB
Goods and services
403
42
Šeškinės Projektai UAB
Goods and services
272
289
PST Investicijos UAB
Services
1
217
Other
Services
77
25
Controlling company
Hisk AB
Goods and services
3,280
965
Other related companies
Scard UAB
Goods and services
-
110
Other
Goods and services
27
39
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(EUR thousand)
2024
2023
Receivables
Companies under control
Šeškinės Projektai UAB
20
454
Hustal UAB
6
37
Aliuminio Fasadai UAB
1,240
747
Alinita UAB
612
475
Other
8
60
Payables:
Companies under control
Vekada UAB
176
246
Kingsbud Sp.z.o.o
109
420
PS Trests SIA
21
171
Šeškinės Projektai UAB
57
432
Ateities Projektai UAB
95
15
Other
122
27
Controlling company
Hisk AB
1,749
369
Other related companies
Other
2
4
Loans receivable incl. accrued interests from companies under control:
Kingsbud Sp.z.o.o
-
48
Šeškinės Projektai UAB
6,837
6,378
Ateities Projektai UAB
1,169
1,379
Payment terms for receivables and payables with the related parties are up to 30–90 days, except for the loans granted,
which are disclosed in Note 6.1.17.
Balances at the year-end have no collaterals and all transactions are carried out in cash unless otherwise agreed. No
guarantees have been received from the related parties for the amounts payable.
Management remuneration
Wages, salaries and social insurance contributions, calculated to the Company’s directors and the Board members for the
year 2024, amounted to EUR 1,101 thousand (2023: EUR 1,068 thousand). For the Company’s management and the Board
members, there were no guarantees issued, any other paid or accrued amounts or assets transferred.
6.1.30. Fair value of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction under
current market conditions in the principal (or the most advantageous) market independent irrespective of whether this price
is directly observable or established using valuation techniques.
As at 31 December 2024
(EUR thousand)
Carrying
amount
Fair value
Total
Level 1
Level 2
Level 3
Financial assets
Trade receivables
10,175
-
-
10,175
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Loans granted
8,006
-
-
8,006
Cash and cash equivalents
1,276
1,276
-
-
Financial assets, total
19,457
1,276
-
18,181
Financial liabilities
Loans (overdraft)
(2,366)
(2,366)
-
-
Trade payables
(11,328)
-
-
(11,328)
Lease liabilities
(302)
-
-
(302)
Fine payable in accordance the decision of
the Competition Council
(3,016)
-
-
(3,016)
Total financial liabilities
17,012
(2,366)
-
(14,646)
As at 31 December 2023
(EUR thousand)
Carrying
amount
Fair value
Total
Level 1
Level 2
Level 3
Financial assets
Trade receivables
16,289
-
-
16,289
Loans granted
7,805
-
-
7,805
Cash and cash equivalents
5,125
5,125
-
-
Financial assets, total
29,219
5,125
-
24,094
Financial liabilities
Loans (overdraft)
(4,120)
(4,120)
-
-
Trade payables
(14,595)
-
-
(14,595)
Lease liabilities
(259)
-
-
(259)
Fine payable in accordance the decision of
the Competition Council
(4,409)
-
-
(4,409)
Total financial liabilities
(23,383)
(4,120)
-
(19,263)
There were no transfers between levels of the fair value hierarchy in 2024 and 2023 at the Company.
The following methods and assumptions are used by the Company to estimate the fair value of the financial instruments
not carried at fair value:
Cash
Cash represents cash at banks and on hand stated at value equal to the fair value.
Receivables
The fair value of trade and other receivables and loans granted is estimated at the present value of future cash flows,
discounted at the market rate of interest at the reporting date. Fair value of short-term trade and other receivables with no
stated interest rate is deemed to approximate their face value on initial recognition and carrying value on any subsequent
date as the effect of discounting is immaterial.
The fair value of non-current trade receivables was estimated to approximate carrying value as discounting effect was
determined to be not material.
The fair value of loans granted was estimated to approximate carrying value as majority of the loans are subject of market
level variable interest.
Financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and
interest cash flows, discounted at the market rate of interest at the reporting date. Fair value of current trade payables with
no stated interest rate is deemed to approximate their face value on initial recognition and carrying value on any subsequent
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date as the effect of discounting is immaterial. The fair value of borrowings (overdraft) was estimated to approximate
carrying value as it is subject to variable interest. The carrying value of lease liabilities approximates the fair value as it is a
subject to interest. The fair value of fine under the decision of the Competition Council is also approximates carrying value,
since it is subject to interest.
6.1.31. Earnings and dividends per share
(EUR)
2024
2023
Net result for the year
(4,923,162)
(2,278,981)
Dividends declared
-
-
Average number of shares
16,350,000
16,350,000
Basic and diluted earnings/(loss) per share
(0.301)
(0.14)
Dividends declared per share
-
-
6.1.32. Events after the End of the Reporting Period
In February 2025, the mortgage loan agreement was signed with ERGO Insurance SE Lithuanian branch for the pledge of
property in the amount of EUR 478 thousand.
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7. Consolidated Financial Statements
Consolidated Statement of Comprehensive Income
For the year ended December 31
EUR thousand | |||
Note | 2024 | 2023 | |
7.1.5, | |||
Revenue from contracts with customers | 7.1.6 | ||
Cost of sales | 7.1.7 | ( | ( |
Gross profit | |||
Change in fair value of investment property | 7.1.11 | ||
Other revenue | 7.1.11 | ||
Selling expenses | 7.1.8 | ( | ( |
Administrative expenses, total | 7.1.9 | ( | ( |
Impairment loss on trade debts, contract assets and other receivables | |||
Reimbursement of costs under the Settlement Agreement | |||
Other administrative expenses | ( | ( | |
Other expenses | 7.1.11 | ( | ( |
Operating profit (loss) | ( | ||
Finance income, total | 7.1.12 | ||
Other finance income | |||
Result of subsidiary liquidation | 7.1.12 | ||
Finance expense, total | 7.1.12 | ( | ( |
Interest expenses | ( | ( | |
Reversal of impairment of contracts in progress | 7.1.12 | ||
Other finance expenses | ( | ( | |
Profit (loss) before tax | ( | ||
Income tax expense | 7.1.13 | ||
Net profit (loss) | ( | ||
Other comprehensive income | |||
Items that will never be transferred to profit/(loss) | |||
Non-current asset revaluation impact | |||
Deferred income tax on revaluation of non-current assets | |||
Items that can or will be transferred to profit/(loss) | ( | ||
Currency translation effect | ( | ||
Other comprehensive income (loss), total | ( | ||
Total comprehensive income (loss) | ( | ( | |
Net profit/(loss) attributable to: | |||
To the equity holders of the Parent | ( | ||
Non-controlling interest | ( | ( | |
( | |||
Comprehensive income (loss) attributable to: | |||
To the equity holders of the Parent | ( | ( | |
Non-controlling interest | ( | ||
( | ( | ||
Basic and diluted earnings/(loss) per share (EUR) | 7.1.26 | ( |
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Consolidated Statement of Financial Position As at 31 December EUR thousand | |||
Note | 2024 | 2023 | |
ASSETS | |||
Non-current assets | |||
Property, Plant and Equipment | 7.1.14 | ||
Intangible Assets | 7.1.15 | ||
Investment Property | 7.1.16 | ||
Right of use assets | |||
Non-current trade receivables | 7.1.18 | ||
Other non-current financial assets | |||
Deferred tax assets | 7.1.13 | ||
Total non-current assets | |||
Current assets | |||
Inventories | 7.1.17 | ||
Trade receivables | 7.1.18 | ||
Contract assets | 7.1.18 | ||
Prepayments | |||
Other assets | 7.1.19 | ||
Prepaid income tax | 7.1.13 | ||
Cash and cash equivalents | 7.1.20 | ||
Total current assets | |||
TOTAL ASSETS |
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Consolidated Statement of Financial Position (continued) As at 31 December EUR thousand | |||
Note | 2024 | 2023 | |
EQUITY AND LIABILITIES | |||
Equity | |||
Issued capital | 7.1.21 | ||
Reserves | 7.1.21 | ||
Retained earnings | |||
Total equity attributable to equity holders of the Parent | |||
Non-controlling interest | ( | ( | |
Total equity | |||
Loans and borrowings | 7.1.23 | ||
Provisions | 7.1.24 | ||
Deferred tax liability | 7.1.13 | ||
Non-current lease liabilities | |||
Other liabilities | |||
Total non-current liabilities | |||
Current liabilities | |||
Loans and borrowings | 7.1.23 | ||
Current lease liabilities | |||
Trade payables | 7.1.22 | ||
Contract liabilities | 7.1.25 | ||
7.1.18, | |||
Provisions | 7.1.25 | ||
Income tax payable | 7.1.13 | ||
Other liabilities | 7.1.25 | ||
Total current liabilities | |||
Total liabilities | |||
TOTAL EQUITY AND LIABILITIES |
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Consolidated Statement of Changes in Equity
Note
Foreign | ||||||||
EUR thousand | currency | Attributable to the | Non- | |||||
Issued | Revaluation | translation | equity holders of | controlling | ||||
capital | Legal reserve | reserve | reserve | Retained earnings | the Parent | interest | Total equity | |
Equity as at 31 December 2023 | ( | ( | ||||||
Total comprehensive income for the year | ||||||||
Net profit (loss) | ( | ( | ( | ( | ||||
Currency translation effect | ||||||||
Total other comprehensive income | ||||||||
Total comprehensive income for the year | ( | ( | ( | ( | ||||
Transactions with owners of the Parent, recognised directly in equity | ||||||||
Dividends | ( | ( | ||||||
Elimination of non-controlling interest | ( | ( | ||||||
Total transactions with owners of the Parent | ( | ( | ||||||
Disposal of assets | ( | ( | ( | |||||
Depreciation transfer for buildings | ( | |||||||
Equity as at 31 December 2024 | ( | ( | ||||||
Equity as at 31 December 2022 | ||||||||
Total comprehensive income for the year | ||||||||
Net profit (loss) | ( | |||||||
Currency translation effect | ( | ( | ( | |||||
Total other comprehensive income | ( | ( | ( | |||||
Total comprehensive income for the year | ( | ( | ( | |||||
Transactions with owners of the Parent, recognised directly in equity | ||||||||
Dividends | ( | ( | ||||||
Repayment of issued capital | ( | ( | ||||||
Total transactions with owners of the Parent | ( | ( | ||||||
Depreciation transfer for buildings | ( | ( | ( | |||||
Equity as at 31 December 2023 | ( | ( |
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Consolidated Statement of Cash Flows
For the year ended December 31
EUR thousand | |||
Note | 2024 | 2023 | |
Cash flows from operating activities | |||
Net profit (loss) | ( | ||
Adjustments to: | 7.1.14, | ||
Depreciation and amortisation (including impairment) | 7.1.15 | ||
Proceeds from disposal of property, plant and equipment | ( | ||
Income tax expense | 7.1.13 | ( | ( |
Elimination of results from financing activities | ( | ||
Change in fair value of investment property | 7.1.11 | ( | ( |
Other non-cash items | ( | ||
Net cash flows from operating activities before changes in working | |||
capital | ( | ||
Changes in working capital: | |||
Changes in inventories | 7.1.17 | ||
Changes in trade receivables and contract assets | 7.1.18 | ||
Changes in prepayments | ( | ||
Changes in other assets | 7.1.19 | ||
Changes in trade payables | 7.1.22 | ( | |
Changes in prepayments received | ( | ( | |
Changes in other liabilities | ( | ( | |
Income tax paid | ( | ( | |
Net cash flows from operating activities | |||
Cash flows used in investing activities | 7.1.14, | ||
Acquisition of intangible assets and property, plant and equipment | 7.1.15 | ( | ( |
Disposal of property, plant and equipment | |||
Acquisition of investments | ( | ||
Loans granted | |||
Collection of loans granted | |||
Interest and dividends received | |||
Net cash flows used in investing activities | ( | ( | |
Cash flows from/used in financing activities | |||
Dividends paid | 7.1.31 | ||
Repayment of borrowings | 7.1.31 | ( | ( |
Loans and borrowings received | 7.1.31 | ||
Payment of finance lease liabilities | 7.1.31 | ( | ( |
Interest paid | ( | ( | |
Net cash flows from/used in financing activities | ( | ||
Net increase/(decrease) in cash and cash equivalents | ( | ||
Effect of foreign exchange on cash | |||
Cash and cash equivalents at the beginning of the period | |||
Cash and cash equivalents at the end of the period |
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7.1. Notes to the Financial Statements
- |
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Alinita UAB | Tinklų st. 7, Panevėžys | 100% | 100% |
Šeškinės Projektai UAB | Verkių st. 25C, Vilnius | 100% | 100% |
Kingsbud Sp. z. o. o. | A. Patli st. 12, 16-400 Suwalki, Poland | 100% | 100% |
SIA PS Trests | Skultes st. 28, Skulte, Marupes mun., Latvia | 100% | 100% |
Tauro Apartamentai UAB | Verkių st. 25C-1, Vilnius | 100% | 100% |
Ateities Projektai UAB | Verkių st. 25C-1, Vilnius | 100% | 100% |
Aliuminio Fasadai UAB | Pramonės st. 5, Panevėžys | 100% | 100% |
(EUR thousand) | 2024 | 2023 |
Total assets | 14 | 14 |
Total liabilities | 3 | 3 |
Equity | 11 | 11 |
Revenue | - | - |
Net result | - |
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(EUR thousand) | 2024 | 2023 |
Trade Receivables and Contract Assets | 12,769 | 19,528 |
Loans granted | - | - |
Cash and cash equivalents | 4,253 | 10,047 |
Total | 17,022 | 29,575 |
Legal persons | 11,675 | 18,174 |
Total trade receivables and contract assets | 12,769 | 19,528 |
(EUR thousand) | 2024 | % | 2023 | % |
Client 1 | 1,499 | 11.7 | 4,212 | 25.9 |
Customer No 2 | 1,240 | 9.7 | 3,122 | 19.2 |
Customer No 3 | 1,094 | 8.6 | 1,142 | 7.0 |
Customer No 4 | 869 | 6.8 | 1,116 | 6.8 |
Customer No 5 | 612 | 4.8 | 747 | 4.6 |
Customer No 6 | 505 | 4.0 | 718 | 4.4 |
Customer No 7 | 484 | 3.8 | 441 | 2.7 |
Other customers | 6,709 | 52.5 | 8,302 | 29.7 |
Impairment | (243) | (1.9) | (272) | (0.3) |
Total | 12,769 | 100 | 19,528 | 100 |
(EUR thousand) | 2024 | 2023 |
Local market (Lithuania) | 12,342 | 18,432 |
Euro zone countries | 198 | 772 |
Other countries | 229 | 324 |
Total | 12,769 | 19,528 |
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(EUR thousand) | 2024 | Impairment | 2023 | Impairment |
Not overdue | 11,046 | 16,238 | ||
Overdue 0-30 days | 1,391 | 1,405 | ||
Overdue 30-90 days | 270 | 1,126 | ||
More than 90 days | 305 | 243 | 1,031 | 272 |
Total | 13,012 | 243 | 19,800 | 272 |
Contractual | ||||
undiscounted cash | ||||
(EUR thousand) | Carrying amount | flows | Up to 6 months | More than 6 months |
Liabilities | ||||
Loans and lease liabilities | 20,532 | 39,425 | 21,336 | 18,089 |
Trade payables | 14,672 | 14,672 | 14,672 | - |
Fine payable in accordance the decision of the Competition | ||||
Council | 3,016 | 3,140 | 746 | 2,394 |
Total | 38,220 | 57,237 | 36,754 | 20,483 |
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2024 | 2023 | |
Loans and lease liabilities | 5.154-6.536% | 6.349-6.561% |
As at 31 December | Average | As at 31 December | Average | |
2024 | 2024 | 2023 | 2023 | |
1 SEK = | 0.0871 | 0.0875 | 0.0901 | 0.0871 |
1 PLN = | 0.2344 | 0.2323 | 0.2304 | 0.2201 |
1 NOK = | 0.0844 | 0.0860 | 0.0817 | 0.0876 |
As at 31 December 2024 (EUR thousand) | EUR | NOK | PLN |
Deferred tax assets | 1,466 | ||
Trade Receivables and Contract Assets | 11,793 | - | 976 |
Excess VAT, prepaid income tax | 344 | - | 40 |
Cash and cash equivalents | 4,105 | 44 | 104 |
Deferred tax liability | (1,470) | - | - |
Loans and borrowings | (23,548) | - | - |
Trade payables | (13,820) | (122) | (730) |
Provisions | (984) | - | |
Income tax | - | (20) | (3) |
Other liabilities | (6,812) | - | (1,265) |
- | |||
Total exposure | (28,926) | (98) | (878) |
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Segment assets and liabilities are presented after elimination of intercompany assets and liabilities within the segment, which are eliminated on consolidation.
Capital expenditure consists of additions of property, plant and equipment, intangible assets and investment properties.
(EUR thousand) | Wooden panel | Other | Intersegment | ||||
As at 31 December 2024 or during 2024 | Construction | Steel structures | houses | activity | Total segments | eliminations | Total Group |
Third parties | 76,141 | 6,158 | 8,326 | 10,053 | 100,678 | - | 100,678 |
Intersegment | 3,276 | 1 | - | 1,457 | 4,734 | 4,734 | |
Total revenue | 79,417 | 6,159 | 8,326 | 11,510 | 105,412 | 4,734 | 100,678 |
Other revenue | 985 | 7 | 106 | 921 | 2,019 | - | 2,019 |
Expenses | |||||||
Depreciation and amortisation | (796) | (96) | (138) | (20) | (1050) | - | (1,050) |
Other administrative and selling expenses | (82,473) | (5,628) | (7,965) | (8,698) | (104,764) | - | (104,764) |
Interest expenses | (439) | (2) | - | (1,166) | (1,607) | - | (1,607) |
Interest income | - | - | - | - | - | - | - |
Financial activity (other than interest), net | (3) | - | 6 | 1 | 4 | - | 4 |
Other expenses | (526) | (7) | (62) | (941) | (1,536) | - | (1,536) |
Income tax expense | 395 | 7 | (22) | (278) | 102 | - | 102 |
Segment result | (3,440) | 440 | 251 | 1,329 | (1,420) | 4,734 | (6,154) |
Segment assets | 46,422 | 4,084 | 3,177 | 40,712 | 94,395 | (21,861) | 72,534 |
Segment liabilities | 26,993 | 1,299 | 1,644 | 30,493 | 60,429 | (11,947) | 48,482 |
Other disclosures | |||||||
Capital expenditure | 456 | 190 | 39 | 47 | 732 | - | 732 |
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(EUR thousand) | Wooden panel | Other | Total | Intersegment | Total | ||
As at 31 December 2023 or during 2023 | Construction | Steel structures | houses | activity | segments | eliminations | Group |
Revenue | |||||||
Third parties | 87,662 | 10,009 | 11,163 | 10,994 | 119,828 | - | 119,828 |
Intersegment | 4,033 | 1 | 0 | 1,845 | 5,879 | 5,879 | - |
Total revenue | 91,695 | 10,010 | 11,163 | 12,839 | 125,707 | 5,879 | 119,828 |
Other revenue | 964 | 3 | 120 | 704 | 1,791 | - | 1,791 |
Expenses | |||||||
Depreciation and amortisation | (964) | (85) | (135) | (14) | (1,198) | - | (1,198) |
Other administrative and selling expenses | (88,020) | (8,513) | (10,088) | (11,569) | (118,190) | - | (118,190) |
Interest expenses | (376) | (3) | - | (1,088) | (1,467) | - | (1,467) |
Interest income | - | - | - | - | - | - | - |
Financial activity (other than interest), net | (1) | - | 1 | 3,983 | 3983 | - | 3983 |
Other expenses | (894) | (9) | (55) | (627) | (1,585) | - | (1,585) |
Income tax expense | 455 | (2) | (126) | (167) | 160 | - | 160 |
Segment result | 2,859 | 1,401 | 880 | 4,061 | 9,201 | 5,879 | 3,322 |
Segment assets | 57,636 | 4,589 | 4,492 | 41,286 | 108,003 | (21,632) | 86,371 |
Segment liabilities | 32,588 | 1,551 | 2,601 | 31,520 | 68,260 | (12,136) | 56,124 |
Other disclosures | |||||||
Capital expenditure | 673 | 191 | 159 | 80 | 1,103 | - | 1,103 |
Reconciliation of liabilities | 2024 | 2023 |
Segment operating liabilities | 60,429 | 68,260 |
Intersegment liabilities | (11,947) | (12,136) |
Total liabilities | 48,482 | 56,124 |
2024 | 2023 | |
Lithuania | 85,719 | 97,131 |
Scandinavian countries | 12,504 | 20,521 |
Other countries | 2,455 | 2,176 |
100,678 | 119,828 |
2024 | 2023 | |
Construction | 76,141 | 87,662 |
Other revenue from contracts with customers | 24,537 | 32,166 |
Total sales income | 100,678 | 119,828 |
(EUR thousand) | 2024 | 2023 |
Construction sub-contractors | 38,823 | 43,867 |
Raw materials and consumables | 31,497 | 40,324 |
Payroll expenses (Note 7.1.10) | 14,893 | 16,276 |
Depreciation and amortisation | 415 | 418 |
Other | 10,597 | 6,703 |
Total cost of sales | 96,225 | 107,588 |
Reconciliation of assets | 2024 | 2023 |
Segment operating assets | 94,395 | 108,003 |
Intersegment assets | (21,861) | (21,632) |
Total assets | 72,534 | 86,371 |
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(EUR thousand) | 2024 | 2023 |
Payroll expenses (Note 7.1.10) | 6,468 | 7,870 |
Purchased services for administrative use | 1,809 | 1,793 |
Operating taxes other than income tax | 314 | 298 |
Depreciation charge | 402 | 492 |
Total impairment loss of trade debts, contract assets and other receivables: | (29) | (96) |
Impairment (reversal of impairment) of receivables (Note 7.1.18) | (29) | (96) |
Amortisation charge | 32 | 38 |
Write-down (reversal) of inventories to net realizable value (Note 7.1.17) | 12 | 17 |
Audit expenses | 132 | 99 |
Rent expenses | 287 | 310 |
Reimbursement of costs under the Settlement Agreement | (1,200) | - |
Other expenses | 761 | 400 |
Total administrative expenses | 8,988 | 11,221 |
(EUR thousand) | 2024 | 2023 |
Change in fair value of investment property | 285 | 178 |
Rental and other income | 1,579 | 1,466 |
Gain from sale of property, plant and equipment and other | 155 | 147 |
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Total other income | 2,019 | 1,791 |
Depreciation of rented premises | (201) | (251) |
Other expenses | (1,335) | (1,334) |
Total other expenses | (1,536) | (1,585) |
Total other income and expenses, net | 483 | 206 |
(EUR thousand) | 2024 | 2023 |
Interest expenses, related to penalty imposed by the Competition Council (Note | ||
27) | - | - |
Foreign currency exchange gain | 24 | 1 |
Liquidation of subsidiary | - | 3,780 |
Other finance income | 9 | 7 |
Total finance income | 33 | 3,788 |
Loan interest expenses | (1,607) | (1,467) |
Reversal of impairment of contracts in progress | - | 341 |
Foreign currency exchange loss | (23) | (5) |
Other expenses | (6) | (141) |
Total finance expense | (1,636) | (1,272) |
Total finance income and expense, net | (1,603) | 2,516 |
7.1.13. Income tax
Income tax expense:
(EUR thousand) | 2024 | 2023 |
Current income tax expense | 47 | 162 |
Change in deferred tax | (149) | (322) |
Total income tax expense | (102) | (160) |
In 2024 and 2023, the Group applied a standard rate of 15% in Lithuania, 22% rate in Norway, 19% rate in Poland, 20% in
Russia and 0% in Latvia. Reconciliation of effective tax rate:
(EUR thousand) | 2024 | 2023 | ||
Profit (loss) before tax | (6,256) | 3,162 | ||
Income tax expense (benefit) applying the Group’s tax rate in Lithuania | 15.0% | (938) | 15.0% | 474 |
Impact of different tax rates in other countries | 12 | 38 | ||
Non-deductible expenses | 130 | (175) | ||
Non-taxable income | (233) | (118) | ||
Utilized tax losses | 0 | (57) | ||
Change in deferred tax asset’s realisation | ||||
allowance | 927 | (322) | ||
(1.63)% | (102) | (5.06)% | (160) |
(EUR thousand) | 2024 | 2023 | ||
Temporary | Temporary | |||
differences | Deferred tax | differences | Deferred tax | |
Impairment of receivables | 228 | 37 | 257 | 39 |
Write-down of inventories to net realisable | ||||
value | 104 | 17 | 91 | 13 |
Accrued vacation reserve | 353 | 57 | 610 | 91 |
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Accrued bonuses | 132 | 21 | 295 | 44 |
Warranty provisions and other | 613 | 98 | 787 | 118 |
Accrued pensions | 331 | 53 | - | - |
Tax losses carry forward | 14,141 | 2,262 | 12,189 | 1,828 |
Onerous contracts | 857 | 137 | 102 | 15 |
Other provisions | 76 | 12 | - | - |
Total deferred tax assets | 2,694 | 2,148 | ||
Unrecognised deferred tax asset | (10) | (10) | ||
Deferred tax asset recognised | 2,684 | 2,138 | ||
Revaluation of land and buildings | (2,063) | (330) | (2,362) | (354) |
Difference in investment property value | (14,735) | (2,358) | (12,937) | (1,941) |
Deferred tax liabilities | (2,688) | (2,295) | ||
Total deferred tax, net | (4) | (157) | ||
Reported in the statement of financial | ||||
position as: | ||||
Deferred tax assets | 1,466 | 1,079 | ||
Deferred tax liability | (1,470) | (1,236) |
Change of deferred tax:
(EUR thousand) | 2024 | 2023 |
Net deferred tax as at 1 January | (157) | (479) |
Amounts recognised in other comprehensive income | - | - |
Recognised in profit or loss | 153 | 322 |
Net deferred tax as at 31 December | (4) | (157) |
Change of income tax payable:
(EUR thousand) | 2024 | 2023 |
Prepaid income tax as at 1 January | 28 | 24 |
Income tax payable as at 1 January | (147) | (132) |
Prepaid (payable) income tax as at 1 January | (119) | (108) |
Income tax calculated over the reporting period | (47) | (162) |
Paid/set off with overpayment of other taxes | 153 | 151 |
Prepaid income tax as at 31 December | 10 | 28 |
Income tax payable as at 31 December | (23) | (147) |
Prepaid (payable) income tax as at 31 December | (13) | (119) |
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7.1.14. Property, Plant and Equipment
Machinery | Construction- | |||||
Land and | and | Fixtures and | in-progress | |||
(EUR thousand) | buildings | equipment | Vehicles | fittings | Total | |
Cost | ||||||
(revalued carrying amount of land and buildings) | ||||||
Balance as at 1 January 2024 | 8,993 | 4,234 | 2,763 | 1,198 | 134 | 17,322 |
Additions | 16 | 323 | 38 | 209 | 16 | 602 |
Reclassification | (116) | - | - | - | (20) | (136) |
Disposals and asset written off | (570) | (281) | (156) | (251) | - | (1,258) |
Balance as at 31 December 2024 | 8,323 | 4,276 | 2,645 | 1,156 | 130 | 16,530 |
Balance as at 1 January 2023 | 9,849 | 4,320 | 2,650 | 1,249 | 0 | 18,068 |
Additions | 75 | 382 | 286 | 210 | 134 | 1,087 |
Reclassification | (931) | (931) | ||||
Disposals and asset written off | - | (468) | (173) | (261) | - | (902) |
Balance as at 31 December 2023 | 8,993 | 4,234 | 2,763 | 1,198 | 134 | 17,322 |
Depreciation and impairment | ||||||
Balance as at 1 January 2024 | 1,472 | 3,272 | 2,199 | 748 | - | 7,691 |
Depreciation for the year | 462 | 233 | 142 | 179 | - | 1,016 |
Disposals and asset written off | (354) | (278) | (143) | (178) | - | (953) |
Balance as at 31 December 2024 | 1,580 | 3,227 | 2,198 | 749 | - | 7,754 |
Balance as at 1 January 2023 | 995 | 3,407 | 2,193 | 805 | - | 7,400 |
Depreciation for the year | 477 | 318 | 174 | 188 | - | 1,157 |
Disposals and asset written off | (453) | (168) | (245) | - | (866) | |
Balance as at 31 December 2023 | 1,472 | 3,272 | 2,199 | 748 | - | 7,691 |
Residual value | ||||||
As at 1 January 2023 | 8,854 | 913 | 457 | 444 | - | 10,668 |
As at 1 January 2024 | 7,521 | 962 | 564 | 450 | 134 | 9,631 |
As at 31 December 2024 | 6,743 | 1,049 | 447 | 407 | 130 | 8,776 |
(EUR thousand) | 2024 | 2023 |
Depreciation recognised in: | ||
Cost of sales | 413 | 414 |
Administrative expenses | 402 | 492 |
Other expenses | 201 | 251 |
Total depreciation | 1,016 | 1,157 |
Land and buildings are stated at revalued amount. The last external revaluation was performed as at 31 December 2022
based on the consultations on possible market prices of the Group’s land and buildings provided by independent appraisers,
having appropriate recognized professional qualifications and necessary experience in valuation of property at certain
location and of certain category. The valuation was performed using the comparable value approach. Significant
unobservable data was used in fair value measurement, i.e. price per square meter/are. The fair value would increase with
an increase in price per square meter/are and decrease with a decrease in price per square meter/are.
If the buildings and land were stated at cost model, their net book value as at 31 December 2024 would be equal to EUR
1,355 thousand (as at 31 December 2023, EUR 1,555 thousand).
As at 31 December 2024, the acquisition cost of fully depreciated but still in use property, plant and equipment amounted
to EUR 5,025 thousand, (as at 31 December 2023, EUR 4,167 thousand).
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( | |||||
(EUR thousand) | 2024 | 2023 |
Balance as at 1 January | 33,841 | 32,565 |
Reclassification to property, plant and equipment | 259 | 886 |
Reclassified of project in progress from inventories | 745 | 212 |
Change in fair value (180+105) | 285 | 178 |
Balance as at 31 December | 35,130 | 33,841 |
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(EUR thousand) | 2024 | 2023 |
Capitalized costs related to real estate development | 3,500 | 3,242 |
Other inventories | 4,079 | 5,727 |
Total inventories | 7,579 | 8,969 |
(EUR thousand) | 2024 | 2023 |
Cost: | ||
Costs of acquired land and real estate | 2,624 | 2,700 |
Real estate development project costs | 876 | 542 |
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Total cost | 3,500 | 3,242 |
Write-down: | ||
Write-down to net realisable value of projects in progress | - | - |
Total write-down | - | - |
Total capitalised costs | 3,500 | 3,242 |
2024 | 2023 | |
Write-down to net realisable value of capitalised costs at the beginning of the | ||
period | - | 481 |
Additional write-down (reversal) recognized under administrative expenses | - | (481) |
Write-down to net realizable value of capitalized costs at the end of the period | - | - |
Total capitalized costs as of | Total capitalized costs as of | |
31 December 2024, | 31 December 2023, | |
carrying amount | carrying amount | |
PST Group AB | 2,563 | 2,723 |
Ateities Projektai UAB | 937 | 519 |
Total | 3,500 | 3,242 |
(EUR thousand) | 2024 | 2023 |
Raw materials and consumables | 2,181 | 3,124 |
Work in progress and finished goods | 1,746 | 2,434 |
Goods for resale | 256 | 261 |
Write-down to net realizable value at the beginning of the year | (92) | (75) |
Write-off | 11 | 8 |
Additional write-down to net realisable value during the period | (23) | (25) |
Write-down to net realisable value | (104) | (92) |
Total other inventories | 4,079 | 5,727 |
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7.1.18. Trade Receivables and Contract Assets
(EUR thousand) | 2024 | 2023 |
Trade receivables | 9,445 | 16,624 |
Contract assets (accrued income based on the stage of completion) | 3,567 | 3,176 |
Receivables from related parties | - | - |
Impairment at the beginning of the year | (272) | (368) |
Write-off of doubtful trade receivables | 39 | 12 |
Repayment of doubtful trade receivables | 6 | 49 |
Additional impairment/(reversal) during the period | (16) | 35 |
Impairment at the end of the year | (243) | (272) |
Total trade receivables and contract assets | 12,769 | 19,528 |
The part of trade receivables due from customers is accounted for as non-current trade receivables: EUR 0 as at 31
December 2024, EUR 66 thousand as at 31 December 2023. These amounts are related with non-current retentions as
described below.
As at 31 December 2024, trade receivables include retentions (retention – a fixed percentage of the total contract price
which is paid by the customer when the construction is completed and the bank guarantee in the amount of the retained
payment is provided or warranty document of the insurance is provided by the Group) of EUR 2,038 thousand (2023: EUR
2,200 thousand) relating to construction contracts in progress. For impairment of trade receivables refer to Note 4.
As at 31 December 2024, the total contract amount attributed to performance obligations under the construction contracts
with customers that were outstanding (or partly outstanding) amounted to EUR 204,852 thousand (as at 31 December
2023, EUR 103,298 thousand). Most of these construction projects are expected to be completed and revenue recognised
within one year.
Information about customer specific contracts in progress as of 31 December 2024 and 2023:
(EUR thousand) | 2024 | 2023 |
Sales by specific customers’ projects in progress, recognised in the statement of comprehensive income during the | ||
year | 37,987 | 55,180 |
Sales by specific customers’ projects in progress, recognised over the contract period | 78,867 | 73,625 |
Expenses incurred for completing specific customers’ projects in progress, recognised in the statement | ||
comprehensive income during the year | 38,313 | 52,287 |
Expenses incurred for completing specific customers’ projects in progress, recognised in the statement | ||
comprehensive income over the contract period | 76,949 | 73,699 |
Contract assets (accrued income) | 3,567 | 3,143 |
Contract liability (deferred income) under outstanding contracts at the year-end (Note 25) | 682 | 772 |
Contract liability (payments from customers for purchase of inventories and etc.) | 1,621 | 2,250 |
Provisions for onerous contracts (Note 25) | 855 | 108 |
Trade receivables (under the caption of trade receivables and receivables from related parties) | 6,193 | 14,812 |
(EUR thousand) | 2024 | 2023 |
Non-financial assets | ||
Excess VAT | 340 | 540 |
Cash deposited | 243 | 431 |
Other current assets | 115 | 133 |
Other current assets, total | 698 | 1,104 |
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(EUR thousand) | 2024 | 2023 |
Revaluation reserve | 2,804 | 3,071 |
Legal reserve | 734 | 734 |
Foreign currency translation reserve | (17) | (17) |
Total reserves | 3,521 | 3,788 |
Dynamics in revaluation reserve: | 2024 | 2023 |
Revaluation reserve as at 1 January | 3,071 | 3,355 |
Revaluation (Note 7.1.14) | - | - |
Depreciation of revaluation | (246) | (284) |
Elimination of non-controlling interest | 8 | - |
Disposal of assets | (29) | - |
- Revaluation reserve as at 31 December | 2,804 | 3,071 |
(EUR thousand) | 2024 | 2023 |
Lithuania | 14,275 | 15,496 |
Latvia | 25 | 510 |
Poland | 175 | 1,598 |
Other | 197 | 255 |
Total trade payables | 14,672 | 17,859 |
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(EUR thousand) | 2024 | 2023 |
Loans and borrowings | 23,533 | 27,352 |
(Finance) lease liabilities | 15 | 39 |
Total loans and borrowings | 23,548 | 27,391 |
Non-current liabilities | 19,103 | 21,183 |
Current liabilities | 4,445 | 6,208 |
Total loans and borrowings | 23,548 | 27,391 |
(EUR thousand) | Interest rate | Maturity | 2024 | 2023 |
OP Corporate Bank plc. | ||||
Lithuanian branch (loan) | Variable interest | 07/2026 | 9,068 | 9,407 |
AS Citadele Banka (loan) | Variable interest | 07/2026 | 9,083 | 9,416 |
OP Corporate Bank plc. | ||||
Lithuania (overdraft) | Variable interest | 09/2025 | 2,366 | 4,120 |
Liabilities related to the fine | ||||
imposed by the Competition | ||||
Council | Fixed interest | 02/2027 | 3,016 | 4,409 |
Total loans | 23,533 | 27,352 |
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(EUR thousand) | 2024 | 2023 |
Warranty provisions | 576 | 436 |
Other | 408 | 453 |
Total provisions | 984 | 889 |
2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
Warranty | Pensions* | Other | Warranty | Pensions | Other | |
repair | repair | |||||
Warranty provision at the beginning of the period | 436 | 335 | 118 | 580 | 384 | 9 |
Used during the period | (502) | (137) | (41) | (584) | (113) | |
Accrued during the year | 642 | 133 | - | 440 | 64 | 109 |
Warranty provision at the end of the period | 576 | 331 | 77 | 436 | 335 | 118 |
(EUR thousand) | 2024 | 2023 |
Non-financial liabilities: | ||
Contract liability (deferred income) under contracts in progress (Note 7.1.18) | 682 | 772 |
Contract liability (payments from customers for purchase of inventories and etc.) | ||
(Note 7.1.18) | 1,621 | 2,250 |
Accrued vacation reserve | 1,768 | 2,305 |
Salaries and related taxes payable | 1,646 | 1,852 |
Bonus accrual for employees | 156 | 313 |
Payable VAT | 374 | 341 |
Accrued expenses | 279 | 253 |
Provisions for onerous contracts (Note 7.1.18) | 855 | 108 |
Financial liabilities: | ||
Operating lease liabilities | 140 | 110 |
Other liabilities | 264 | 298 |
Total contract and other liabilities | 7,785 | 8,602 |
Whereof: | ||
Non-current portion | 767 | 722 |
Current portion | 7,018 | 7,880 |
7.1.26. Earnings and Dividends per Share
(EUR) | 2024 | 2023 |
Net result for the year attributable to equity holders of the Group | (6,153,530) | 3,322,234 |
Dividends declared | - | - |
Average number of shares | 16,350,000 | 16,350,000 |
Basic and diluted earnings per share | (0.38) | 0.20 |
Dividends declared per share | - | - |
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(EUR thousand) | Type of transaction | 2024 | 2023 |
Sales: |
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Shareholder | ||||
Hisk AB | Goods and services | 344 | 106 | |
Shareholder’s subsidiaries | ||||
Other Purchases: | Goods and services | - | - | |
Shareholder | ||||
Hisk AB | Goods and services | 3,280 | 966 | |
Shareholder’s subsidiaries (none) | ||||
Other companies related to the shareholder | ||||
Scard UAB | Services | - | 110 | |
Other | Goods and services | 27 | 42 | |
(EUR thousand) | 2024 | 2023 | ||
Receivables: | ||||
Shareholder | ||||
Hisk AB (trade receivable) | - | - | ||
Payables: | ||||
Shareholder | ||||
Hisk AB | 1,749 | 369 | ||
Shareholder’s subsidiaries | ||||
Other Other companies related to the shareholder | - | - | ||
Other | 2 | 4 |
Carrying | Fair value | ||||
amount | |||||
Total | Level 1 | Level 2 | Level 3 | ||
Financial assets | |||||
Trade receivables | 12,769 | - | - | 12,769 | |
Cash and cash equivalents | 4,253 | 4,253 | - | - | |
Financial assets, total | 17,022 | 4,253 | - | 12,769 | |
Financial liabilities | |||||
Interest bearing loans and borrowings | (23,533) | - | - | (23,533) | |
(Finance) lease payments | (15) | - | - | (15) | |
Trade payables | (14,672) | - | - | (14,672) | |
Total financial liabilities | (38,220) | - | - | (38,220) |
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Carrying | Fair value | ||||
amount | |||||
Total | Level 1 | Level 2 | Level 3 | ||
Financial assets | |||||
Trade receivables | 19,528 | - | - | 19,528 | |
Cash and cash equivalents | 10,047 | 10,047 | - | - | |
Financial assets, total | 29,575 | 10,047 | - | 19,528 | |
Financial liabilities | |||||
Interest bearing loans and borrowings | (27,352) | - | - | (27,352) | |
(Finance) lease payments | (39) | - | - | (39) | |
Trade payables | (17,859) | - | - | (17,859) | |
Total financial liabilities | (45,250) | - | - | (45,250) |
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PST Investicijos UAB | |||
2024 | 2023 | ||
Non-controlling interest,% | 31.0% | 31.0% | |
Non-current assets | - | 75 | |
Current assets | 142 | 185 | |
Total assets | 142 | 260 | |
Non-current liabilities | - | 9 | |
Current liabilities | - | 1 | |
Total liabilities | - | 10 | |
Net assets | 142 | 250 | |
Net assets attributable to non-controlling interest | 44 | 78 | |
Revenue | 9 | 4,075 | |
Expenses | (82) | (273) | |
Net profit (loss) | (73) | 3,802 | |
Other comprehensive income | - | - | |
Net profit/(loss) attributable to non-controlling interest | (23) | 7 | |
Other comprehensive income attributable to non-controlling interest | 0 | ||
Cash flows from operating activities | (11) | (548) | |
Cash flows used in investing activities | - | - | |
Cash flows from/used in financing activities | - | - | |
Net increase/(decrease) in cash and cash equivalents | (11) | (548) |
7.1.31. Change in Liabilities Arising from Financing Activities
As at 31 | Dividends | Accrued | Cash | Currency | As at 31 | |||
(EUR thousand) | December 2023 | declared | outflows | exchange | December 2024 | |||
Dividends payable | 27 | - | - | - | - | 27 | ||
Loans received and interests | ||||||||
payable | 27,352 | - | - | (3,819) | - | 23,533 | ||
Finance lease liabilities | 39 | - | - | (24) | - | 15 | ||
Total | 27,418 | - | - | (3,843) | - | 23,575 |
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7.1.32. Events after the End of the Reporting Period
In February 2025, the mortgage loan agreement was signed with ERGO Insurance SE Lithuanian branch for the pledge of
property in the amount of EUR 478 thousand.
On 6 February 2025, Šeškinės Projektai UAB signed a credit agreement No 164- IV with the bank Luminor AS. The
transaction amounts to EUR 20,850,000, period from 6 February 2025 to 31 January 2030. The credit is intended to
refinance the credit agreement No KS/21-301 with AS Citadele banka Lithuanian branch and OP Corporate Bank plc
Lithuanian branch.
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Confirmation of responsible persons
This confirmation of responsible employees concerning the audited Consolidated Financial Statements and the
Consolidated Annual Report, the Corporate Governance Report, the Consolidated Social Responsibility Report, and the
Remuneration Report of PST Group AB and its subsidiaries (hereinafter “the Group”) for the year 2024 is presented in
accordance with the Law on Securities of the Republic of Lithuania and the Rules for Preparation and Presentation of
Periodic and Additional Information approved by Resolution of the Board of the Bank of Lithuania.
Hereby we confirm that, as to our knowledge, the presented consolidated financial statements, which have been prepared
in accordance with International Financial Reporting Standards as adopted by the European Union, give a true and fair view
of the Group’s financial position, profit or loss and cash flows, and that the Company’s and the Consolidated Annual Report,
the Corporate Governance Report, the Consolidated Social Responsibility Report, and the Remuneration Report fairly
states the review of business development and activities, the Group’s position and description of the main risks and
uncertainties that are faced.
PST Group AB PST Group AB
Managing Director Chief Financial Officer
Tomas Stukas Mindaugas Ambrasas
8 April 2025 8 April 2025
