Utenos Trikotazas - Interim information

Group earned LTL 0.5 million (EUR 0.1 million) of pre-tax profit

Financial statements of 2014

AB “Utenos trikotažas” Group operating profit of 2014 was LTL 5.7 million (EUR
1.6 million), as in the same period in 2013 the Group earned LTL 2.3 million
(EUR 0.7 million) operating profit. Group earned LTL 0.5 million (EUR 0.1
million) of pre-tax profit, while in the same period in 2013 the Group incurred
LTL 1.2 million (EUR 0.4 million) loss before taxes. 

“2014 was the turning point year for both the Company and the Group - the new
strategy of “Utenos trikotažas” to change the structure of sales and to
polarise towards manufacturing production of higher added value enabled us to
waive the less valuable orders and shift our main focus on the design of
innovative materials, its presentation to new markets and the development of
our own trademark ABOUT. The successful implementation of the strategy helped
us to increase the company's profitability significantly. 

The five-year long term financing agreement drawn up in favourable terms with
DNB bank in the end of the last year not only enabled the company to redeem 70
percent of bonds issued in 2009. Besides it will also significantly reduce - by
more than LTL 2 million (EUR 0.6 million) per year -the interest expenditures.
This positive effect will come into being already in 2015”, says Gintautas
Bareika, the Chief Executive Officer of AB “Utenos trikotažas”. 

The loss on fluctuations of Ukrainian currency (UAH) exchange rate, which was
recorded in the AB “Utenos trikotažas” financial activity and which had effect
on flow of funds of both the Group and the company, resulted in a negative
impact on the consolidated results of the Group by LTL 2.5 million (EUR 0.7
million) of 2014,while in the same period in 2013 the negative impact of
fluctuations of the Ukrainian currency (UAH) exchange rate on the results was
LTL 1.0 million (EUR 0.3 million). 

The management considers the loans granted to the subsidiary PAT MTF “Mrija”
and long term receivables from it as net investment in this subsidiary.
Respectively, differences of exchange rate related to these amounts, are
accounted in Group‘s consolidated financial statementsthrough other
comprehensive income (expenditure) and are not included in profit (loss) before
taxes. 

Attributed net investment amounts to LTL 11.9 million (EUR 3.5 million) and
related foreign currency exchange difference related to this amount for the
year 2014 comprises LTL 6.6 million (EUR 1.9 million), which is accounted in
Group‘s consolidated financial statementsthrough other comprehensive income
(expenditure). 

In 2014, AB "Utenos trikotažas" earned LTL 2.0 million (EUR 0.6 million) of
operating profit, while in 2013 the Company incurred LTL 0.4 million (EUR 0.1
million) operating loss. The Company incurred LTL 0.8 million (EUR 0.2 million)
of pre-tax loss, while in 2013 it incurred LTL 2.7 million (EUR 0.8 million)
loss before taxes. 

Company results were negatively impacted by LTL 1.2 million (EUR 0.3 million)
as additional write-offs were made for receivables from subsidiary PAT MTF
“Mrija”. It is important to note, that it virtually had no effect on the
Company cash flows. The management of the Company adopted the decision to make
write-offs after the evaluation of increased risk regarding the complicated
political and economic situation in Ukraine. 

For more information please contact Mr. Gintautas Bareika, Chief Executive
Officer of AB “Utenos trikotažas”, tel. No. 370 389 51445. 



Chief Executive Officer    AB “Utenos trikotažas” Gintautas Bareika

Attachments:

Interim financial statements 2014.pdf

Confirmation of responsible persons.pdf