Fourth Quarter and Year 2021 Financial Commentary

Net rental income was 613,708 euros in 4Q 2021 (657,849 euros in 4Q 2020) and 2,478,829 euros for the twelve months of 2021 (2,637,007 euros for the 12 months of 2020). Operating income was 582,177 euros in 4Q 2021 (618,950 euros in 4Q 2020) and 2,275,598 euros for the twelve months of 2021 (2,482,439 euros for the 12 months of 2020). Net income was 335,878 euros in 4Q 2021 (251,417 euros in 4Q 2020) and 1,286,634 euros for the twelve months of 2021 (1,370,964 euros for the 12 months of 2020).

The fall in net rental income in 4Q is due to property repairs and the investments that the Group has undertaken in the Olaines logistics park. The Group also suffered a loss of revenue due to lower variation and associated repair work in 1Q, which impacted net rental income for 2021. In 3Q, the Group incurred an efficiency fee which had an additional impact on the Operating Result for 2021. General and administrative expenses were in line with expectations for 2021 and had no impact on the Group’s financial results. The decrease in net profit is due to the above factors. Overall, the Group’s financial results are in line with management’s expectations.

There were no extraordinary expenses or events during the reporting period, other than the aforementioned energy efficiency charge. Apart from the investments in energy efficiency and green energy that the Group plans for 2022, management is not aware of any circumstances that could seriously affect the Group’s financial results in 2022 at the closing date.

Key financial performance indicators and position for 12 months 2021

(in euros)

4th quarter 2021

4th quarter 2020

12 months 2021

12 months 2020

Net rental income

613 708

657,849

2,478,829

2,637,007

Operating result

582 177

618,950

2,275,598

2,482,439

Net revenue

335,878

251,417

1,286,634

1,370,964

(in euros)

31.12.2021

31.12.2020

Investment property

31,320,000

30,909,000

Interest-bearing loans

26,358,361

27,428,630

Interest-bearing loans less shareholder loan

23,416,333

24,480,330

12 months 2021

12 months 2020

Net profit margin, % (Net income / Net rental income)

51.9%

52.0%

ROA (Net income / Average fixed assets)

4.10%

4.44%

Debt to EBITDA (Interest-bearing loans less shareholder loan / Operating income)

10.3

10.3

LTV (Interest bearing loans less shareholder loan / Investment property)

74.8%

79.2%

DSCR (Operating profit / Loan principal and interest payments on interest-bearing loans)

1.1

1.1

management board and supervisory board

The board of directors of UPP Olaines OÜ is composed of one member: Marko Tali, the chairman of the board of directors. The board of Olaines Logistics SIA also has one member: Siim Sild, chairman of the board.

The supervisory board of UPP Olaines OÜ is made up of three members: Mart Tooming, Tarmo Rooteman, Hallar Loogma.

No remuneration or other benefit has been granted to the members of the management board and the supervisory board of UPP Olaines OÜ. The member of the board of Olaines Logistics SIA receives remuneration in accordance with Latvian legislation.

There are no employees in the company apart from the members of the management board and the supervisory board.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Condensed Interim Consolidated Statement of Comprehensive Income

(in euros)

To note

4th quarter 2021

4th quarter 2020

12 months 2021

12 months 2020

Net rental income

4

613 708

657,849

2,478,285

2,637,007

Other income

0

0

544

0

Net rental income

613 708

657,948

2,478,829

2,637,007

General and administrative expenses

(31,531)

(38,899)

(153,516)

(154,568)

Other operating expenses

0

0

(49,715)

0

Operating result

582 177

618,950

2,275,598

2,482,439

Financial income / (cost)

(246,299)

(367,533)

(988,964)

(1,111,475)

Profit before income tax

335,878

251,417

1,286,634

1,370,964

Income tax

0

0

0

0

Net revenue

335,878

251,417

1,286,634

1,370,964

Total comprehensive income for the period

335,878

251,417

1,286,634

1,370,964

Condensed consolidated interim statement of financial position

(in euros)

To note

31.12.2021

31.12.2020

Cash and cash equivalents

722,947

676 373

Customers and other debtors

280 124

171 124

Total current assets

1,003,071

847 497

Investment property

31,320,000

30,909,000

Total non-current assets

31,320,000

30,909,000

TOTAL ASSETS

32,323,071

31,756,497

Suppliers and other creditors

556 956

369,527

Financial derivatives

162,078

363,979

Loans and borrowings

5

23,416,333

1,064,004

Total current liabilities

24,135,367

1,797,510

Loans and borrowings

5

2,942,028

26,364,633

Total non-current liabilities

2,942,028

26,364,633

TOTAL RESPONSIBILITIES

27,077,395

28,251,136

Share the capital

2,500

2,500

Retained earnings

5,243,176

3,591,861

EQUITY

5,245,676

3,594,361

TOTAL EQUITY AND LIABILITIES

32,323,071

31,756,497

UNITED PARTNERS

Siim Sild

General manager

+372 5626 0107

[email protected]

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