26/08/2020 No. SD-357 CERTIFICATION STATEMENT Referring to the provisions of the Article 13 of the Law on Securities of the Republic of Lithuania and the Rules of Disclosure of the Bank of Lithuania, we, the undersigned AB „Ignitis gamyba” Rimgaudas Kalvaitis, Chief Executive Officer, Mindaugas Kvekšas, Director of Finance and Administration, and Dalia Motiejūnienė, Head of Accounting and consultation division of UAB „Ignitis grupės paslaugų centras”, hereby confirm that, to the best of our knowledge, AB „Ignitis gamyba” condensed Interim financial statements for six-month period ended 30 June 2020 are prepared according to International Accounting Standard 34 “Interim financial reporting” adopted by the European Union, give a true and fair view of AB „Ignitis gamyba” assets, liabilities, financial position, profit or loss for the period and cash flows, the Interim Report for the six-month period includes a fair review of the activities business development as well as the condition of AB „Ignitis gamyba” and with the description of the principle risk and uncertainties it faces. Chief Executive Officer Rimgaudas Kalvaitis Finance and Administration Director Mindaugas Kvekšas UAB „Ignitis grupės paslaugų centras”, Dalia Motiejūnienė Head of Accounting and consultation division, acting under Order No. IS-88-20 (signed 10/04/2020) AB „Ignitis gamyba“ +370 618 37392 www.ignitisgamyba.lt Company code 302648707 Elektrinės g. 21, LT-26108 [email protected] Elektrėnai, Lithuania VAT code LT100006256115 IGNITIS GAMYBA AB 2020 COMPANY'S INTERIM REPORT AND INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2020, PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARD 34, 'INTERIM FINANCIAL REPORTING' AS ADOPTED BY THE EUROPEAN UNION, PRESENTED TOGETHER WITH THE INDEPENDENT AUDITOR'S REPORT www.ignitisgamyba.lt Ignitis Gamyba AB Elektrinės st. 21, LT-26108, Elektrėnai, Lithuania E-mail [email protected] Company code 302648707 CONTENT INDEPENDENT AUDITOR’S REPORT 3–5 INTERIM REPORT 6–32 INTERIM CONDENSED FINANCIAL STATEMENTS 33–58 Interim Condensed Statement Of Financial Position 34 Interim Condensed Statement Of Profit Or Loss And Other 35 Comprehensive Income Interim Condensed Statement Of Changes In Equity 37 Interim Condensed Statement Of Cash Flows 38 Notes To Interim Condensed Financial Statements 39–58 Interim condensed financial statements of Ignitis Gamyba AB were approved on 26 August 2020 by the Chief Executive Officer, the Director of Finance and Administration, and the Head of the Business Accounting Consultations Unit of Ignitis grupės paslaugų centras UAB (acting under Order No IS-88-20 of 10/04/2020): Rimgaudas Kalvaitis Mindaugas Kvekšas Dalia Motiejūnienė Chief Executive Officer Director of Finance and Administration Head of the Business Accounting Consultations Unit of Ignitis grupės paslaugų centras UAB, acting under Order No IS-88-20 of 10/04/2020 2 UAB „Ernst & Young Baltic“ Ernst & Young Baltic UAB Aukštaičių g. 7 Aukštaičių St. 7 LT-11341 Vilnius LT-11341 Vilnius Lietuva Lithuania Tel.: (8 5) 274 2200 Tel.: +370 5 274 2200 Faks.: (8 5) 274 2333 Fax: +370 5 274 2333 [email protected] [email protected] www.ey.com www.ey.com Juridinio asmens kodas 110878442 Code of legal entity 110878442 PVM mokėtojo kodas LT108784411 VAT payer code LT108784411 Juridinių asmenų registras Register of Legal Entities INDEPENDENT AUDITOR’S REPORT To the shareholders of “Ignitis gamyba“, AB Opinion We have audited the accompanying interim condensed financial statements of ,,Ignitis gamyba”, AB, (hereinafter the Company), which comprise the interim condensed statement of financial position as of 30 June 2020, the interim condensed statements of comprehensive income for three and six months periods then ended, the interim condensed statement of changes in equity for six months period then ended, the interim condensed statement of cash flows for six months period then ended, and notes to the interim condensed financial statements. In our opinion, the accompanying interim condensed financial statements have been prepared, in all material respects, in accordance with International Financial Reporting Standards applicable to interim financial reporting as adopted by the European Union (34th International Accounting Standard “Interim Financial Reporting”). Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the interim condensed financial statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the requirements of the Law on the audit of financial statements of the Republic of Lithuania that are relevant to the audit in the Republic of Lithuania, and we have fulfilled our other ethical responsibilities in accordance with the Law on Audit of the financial statements of the Republic of Lithuania and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information Other information consists of the information included in the Company’s Interim Report of six months period ended 30 June 2020 other than the interim condensed financial statements and our auditor’s report thereon. Management is responsible for the other information presentation. Our opinion on interim condensed financial statements does not cover the other information and we do not express any form of assurance conclusion thereon, except as indicated below. In connection to our audit of the interim condensed financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the interim condensed financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. We also have to evaluate, if the financial information included in the Company’s Interim Report corresponds to the interim condensed financial statements for the same period and if the Company’s Interim Report was prepared in accordance with the relevant legal requirements. In our opinion, based on the work performed in the course of the audit of interim condensed financial statements, in all material respects: • The financial information included in the Company’s Interim Report corresponds to the financial information included in the interim condensed financial statements for the for the same period then ended; and • The Company’s Interim Report was prepared in accordance with the requirements of the Law on Financial Reporting by Undertakings of the Republic of Lithuania. A member firm of Ernst & Young Global Limited Responsibilities of management and those charged with governance for the interim condensed financial statements Management is responsible for the preparation and fair presentation of interim condensed financial statements in accordance with 34th International Accounting Standard “Interim Financial Reporting”, adopted by the European Union, and for such internal control as management determines is necessary to enable the preparation of interim condensed financial statements that are free from material misstatement, whether due to fraud or error. In preparing the interim condensed financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company’s financial reporting process. Auditor’s responsibilities for the audit of the interim condensed financial statements Our objectives are to obtain reasonable assurance about whether the interim condensed financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this interim condensed financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the interim condensed financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.