Report of UAB Vilniaus Lokomotyvų Remonto Depas Content
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2020 Report of UAB Vilniaus lokomotyvų remonto depas Content CEO’S FOREWORD 2 BASIC INFORMATION ON THE COMPANY 3 MANAGEMENT OF THE COMPANY 5 STRATEGY 14 MAJOR EVENTS IN 2020 16 EVENTS AFTER THE REPORTING PERIOD 17 OVERVIEW OF THE KEY PERFORMANCE INDICATORS 18 ANALYSIS OF FINANCIAL AND PERFORMANCE RESULTS 19 OPERATING RESULTS 19 INVESTMENTS 24 EMPLOYEES 25 RISKS AND THEIR MANAGEMENT 29 INFORMATION ON THE COMPLIANCE WITH THE GUIDELINES ON THE TRANSPARENCY 30 CORPORATE SOCIAL RESPONSIBILITY REPORT 33 FINANCIAL STATEMENTS 40 INDEPENDENT AUDIT REPORT 41 STATEMENT OF FINANCIAL POSITION 44 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 46 STATEMENT OF CHANGES IN EQUITY 47 STATEMEMT OF CASH FLOWS 48 EXPLANATORY NOTES 49 ABBREVIATIONS: Company, VLRD – UAB Vilniaus lokomotyvų remonto depas LTG group, Group, Company group – AB Lietuvos Geležinkeliai and its subsidiaries LTG Cargo – AB LTG Cargo LTG Link – UAB LTG Link EU – European Union GTC – UAB Geležinkelio tiesimo centras GRL – The Government of the Republic of Lithuania Annual and interim reports as well as the financial statements are available publicly on the Company’s website:http://www.vlrd.lt. CEO foreword Dear partners, customers, mployees, The year 2020 should be assessed in terms how companies addressed the challenges of the global pandemic, how they managed to adapt the processes in place and introduce new ones, and, certainly, to protect their employees. UAB Vilniaus lokomotyvų remonto depas, just as many other companies, started the year by planning works towards ambitious objectives, however it did not avoid the Covid-19 rollercoaster. As early as in the first half of the year we had an opportunity to give a credit to the team for its readiness for remote work and organization of production processes in compliance with strict safety requirements, whereas the second quarantine further clarified the priorities of a new reality – safe employee, safe environment and responsible manager. I am happy that throughout the year we have fulfilled our obligations to customers in due time, consistently created and responsibly maintained relationship with foreign customers. The awarded contracts for wagon repairs to the Lithuanian companies not only contributed to ensuring workloads in the We are already in a close cooperation with LTG Cargo, regions but also created value for business entities in our successfully carry out capital repairs of Siemens locomotives country. entrusted to us. Therefore, in preparation for challenges in the future, I see a great value in working together. Taking the green course of the entire LTG Group, in 2020 we have designed and manufactured the first modernized It is no secret that a successful company can be defined by locomotive TEM2-1000. In addition to all other innovations, a satisfied employees, thus, even during the year when the much more environmentally-friendly engine will run in it. We hunger for immediate communication has been felt so strongly, strongly believe in success of this product in our region. we have offered a new series of events “VLRD says thank you” to our colleagues. For the first time in the company’s history, The threat of the pandemic has not stopped other initiatives just as other LTG Group companies, we have conducted the either. The project “Relocation of Repair Location Closer to the survey of “Voice of Employees”, which has revealed that the Customer” is being successfully implemented: from September employees also see the breakthrough in occupational safety 2020, 2nd workshop of VLRD operates in Vaidotai. The project of as one of the key priorities. investment in optimization of production bases “Modernization of Production Activity of Repairs of Vilnius Locomotives” has We have taken immediate measures and already have a been prepared, and on 29 December 2020 it was granted the strategy for improvement of occupational safety the purpose status of regional importance. Formation of a land parcel for whereof is zero accidents in the working environment. a new depot in the railway station of Vaidotai has begun. All procurements related to production of wagons have been I do have faith that by keeping up with the direction of efficiency, initiated, staff selection procedures are in progress. innovations and growth of organizational culture we are taking the surest way towards achievement of ambitious objectives After the end of the reporting period of 2020, the parent set out in the strategy, and having joined the forces with LTG company AB Lietuvos Geležinkeliai has announced its decision Cargo we will create value for our shareholder – Lithuania. to merge two group companies – VLRD and LTG Cargo. I am of the opinion that it is the right way to create a stronger synergy between the two companies, which share the same goal in ALBERTAS BAJORINAS their horizon – to expand the activity beyond the Lithuanian Chief Executive Officer borders, lead the railway sector in the region. UAB Vilniaus lokomotyvų remonto depas 2 Basic information on the company Company name UAB Vilniaus lokomotyvų remonto depas Legal form Private Limited Liability Company Date and place of registration 21 August 2003, the Register of Legal Entities of the Republic of Lithuania Company code 126280418 Address Švitrigailos St. 39, LT-03209 Vilnius Telephone (+370 5) 269 2035 Email [email protected] Website www.vlrd.lt Core business Production of new shunting locomotives and road machinery, performance of capital and current repairs, and maintenance of all types of railway rolling stock, production and repair of freight wagons. Company’s Chief Executive Officer Albertas Bajorinas Shareholders 100% of shares is owned by AB Lietuvos Geležinkeliai Subsidiaries and associated companies of the company Name OOO Rail Lab UAB Lokomotyvai ir transporto komponentai Registered address Internacionalnaja g. 36-1, Minsk, Republic of Šeškinės St. 59A, Vilnius Lithuania Legal form Limited liability company Private limited liability company Date, place of registration 26/05/2020, Republic of Belarus 09/09/2014, Register of Legal Entities of the Republic of Lithuania Company number 192827267 303388493 Phone +375 29 312 23 52 +370 616 46221 E-mail [email protected] - Website - - Principal activity Production of rolling stock and locomotives, Activity is not conducted repair and maintenance of vehicles, whole- sale trade of other machinery and plant Shareholding held by the Company, % 99 per cent of shares is controlled by UAB 25 per cent of shares is controlled by UAB Vilniaus lokomotyvų remonto depas Vilniaus lokomotyvų remonto depas The company’s branches, representative offices abroad The Company did not have branches or representative offices during the analyzed period. 3 Activity of the company Operating model of the Company UAB Vilniaus lokomotyvų remonto depas together with the parent company AB LietuvosGgeležinkelia” and its legal entities, controlled directly or indirectly, comprise a company group of vertical integration. The Company, operating in the LTG Group follows the strategy confirmed by the parent Company and confirmed policies for activity areas. VLRD was entered into the Register of Legal Entities on 21 August 2003. The Company started its activity on 1 October 2003. The main activity and services rendered • Production of new locomotives, autodraisines and infrastructure road machinery; • Works of capital and current repairs and technical maintenance of railway rolling stock; • Production of freight wagons and works of depot, capital and current repairs of freight wagons; • Other repairs and activity (repairs of units, containers, wholesale). Market The Company provides services to companies in Lithuania, Latvia, Estonia, Poland, Ukraine, Georgia. In 2020, the major part of services (96.1 per cent) was rendered to the Lithuanian companies. The largest volumes of services in the foreign market was rendered to companies in Poland, Latvia and Estonia. Competitive environment The major competitor of VLRD in Lithuania, Latvia and Estonia in the field of services of locomotives and wagons is the locomotive repair factory in Daugavpils, which has enormous productive premises and large repair capacities. In Poland, VLRD competes with such manufacturers as PESA, NEWAG and other private repair depots. There are over 100 repair depots In Ukraine, which are owned by the Ukrainian railways, repairing their fleet. Their repair bases are not up to date, they lack investment into to the repair bases. Also, private repair depots operate in Ukraine, such as the locomotive repair factory in Mykolaiv, the locomotive repair factory in Zaporizhzhia, the locomotive repair factory of Ivano-Frankivsk and the locomotive repair factory in Poltava and other. Major clients The clients of the Company are railway companies (carriers). In 2020, the following major clients used the services of the Company: LTG Group companies (AB “LTG Cargo”, UAB LTG Link; in 2020, VLRD’s sales turnover for the group companies accounted for 88 per cent), also other Lithuanian and foreign companies - UAB Transachema, UAB ”Kuusamet”. 4 Management of the company Information about shares as at 31 December 2020 Amount of Company authorised capital, Number of shares, Par value per EUR thousand pcs. share, EUR Parent company UAB Vilniaus lokomotyvų remonto depas 19,017 65,663 289,62 Subsidiary OOO Rail Lab 450 - - Associated company UAB Lokomotyvai ir transporto komponentai 72 250 289,62 The Company is part of AB Lietuvos Geležinkeliai Group the sole shareholder whereof is the parent company