City Service AB. Interim Consolidated report for the six months of 2013

Transcription

1 City Service AB Interim Consolidated report for the six months of 2013 August 2013

2 Page 2 1. About the Company City Service Group Structure of the Group Key events Activities in Lithuania Activities in foreign markets Poland Russia Latvia Improving efficiency of activities Employees Management and Control of the Company Structure of the Board Management of the Company Data about agreements with intermediaries of public trading in securities Data about issuer s securities traded on regulated markets Structure of the Company Authorised capital and Shares Shareholders of the Company Related party transactions Data on publicly disclosed information General information on and City Service group Reporting period of the interim consolidated report Issuer, data and contacts City Service group s data and contacts... 15

3 Page 3 1. About the Company 1.1. City Service Corporate Group City Service AB is a holding company. City Service controls one of the largest corporate groups, engaged in provision of facility management and integrated utility services in Eastern and Central Europe. The Group companies engage in facility management process administration, engineering systems maintenance and repairs, energy resources management and renovation, buildings technical and energetic auditing, waste management and ecology business, elevators installation and maintenance, territory cleaning and provision of security services. At present the Group companies perform their activities in Lithuania, Poland, Russia, Latvia and Ukraine. The total area of facilities, administered in the said regions is larger than 25 million sq. m.

4 Page Structure of the Group

5 Page Key events May Riga City Service, signed the agreement and commenced providing complex facility management service to all the Iki stores, managed by the Palink company, operated in Latvia. Riga City Service maintains 52 Iki stores with the total area larger than 58 thousand sq. m. A Group company Mano Būstas LT commenced provision of facility management services to nine Impuls sports clubs throughout Lithuania. The company started providing its customers the automated energy monitoring system, giving the possibility to efficiently control buildings energy consumption, notice energy over-consumption in due time and take efficient measures in order to reduce energy costs. June A City Service Group company ZZN, operating in Poland, won the tender for administering the apartments, territories and other premises, belonging to Poznan city municipality. The total area of the apartments, territories and other facilities, transferred to ZZN for maintenance is 1.35 million sq. m. A Group company Riga City Service signed the agreement with Latvian state energy company Latvenergo for maintaining the objects of its subsidiary Latvijas Elektriskie Tīkli. The total area is larger than 30 thousand sq. m. and the managed territory is 274 hectares. Latest events. July Starting from 1 July the Mano Būstas LT commenced maintaining 10 solar power plants in Kaunas, Vilnius, Klaipėda and Utena districts with the total capacity of 5.75 MW. The total area of managed sites is larger than 21 hectares. Starting from 1 July Group companies commenced providing elevators maintenance services in Russia, Saint- Petersburg. August On 21 August Group company ZZN signed the agreement with Poznan s Apartment Facility Council (Zarzad Komunalnych Zasobow Lokalowych) for administering the apartments, territories and other premises, belonging to Poznan city municipality.

6 Page 6 2. Activities in Lithuania Apartment buildings maintenance. Maintenance of apartment buildings remains the most important area of the Group companies activities on the Lithuanian market. This year the quality of the provided services and customer care was further improved and developed. In order to reduce the heat loss in the maintained apartment buildings, the Group companies continued to implement the 5 steps heat saving programme, according to which heat saving tools were implemented in buildings. The residents were provided specific proposals on the ways of reduction the heat loss both inside apartments and in the premises of common use. A Group company Mano Būstas LT continued implementing apartment building renovation projects according to the JESSICA programme renovation of already a second apartment building in Vilnius was completed. About 50 more apartment buildings expressed their wish to participate in the modernization programme during the first half of the year. In the last year a part of the company s customers in Lithuania were provided access to the new self-servicing portal, at which one can conveniently pay for utility services, view payment notices, find comprehensive information on the works, planned in the building and contact the manager, servicing the building. During the first half of 2013 access to the new portal was provided to almost all the customers in Lithuania. The residents survey, performed this year, showed that apartment building owners value the services, provided by the company even better. The latest customer opinion survey showed that, compared to 2011, in 2013 the amount of the company s supporters grew by 66%. At present the area of apartment buildings, maintained by Mano Būstas LT in Lithuania exceeds 8.5 million sq. m.. Elevators maintenance and renovation. In the first half of the year the Group companies Baltijos Liftai and Šiaulių Liftas increased the number of maintained elevators up to The segment of services, relating to elevators modernization was also developed 8 old elevators were replaced by new ones, 2 equipment units were modernized. When performing the elevators modernization projects, the Group companies, in line with the EU directives and standards, strive for renovating the elevators in the country s largest cities, which reached the limit of the operating period. Totally about 7 thousand elevators are installed in Lithuania s apartment buildings. During the first six months of the year the Šiaulių Liftas company installed 33 equipment units at public and commercial objects. In 2013 the Group companies are going to continue to extent the range of services in the commercial facility segment, while modernization and replacement of old elevators in apartment buildings will remain the main task. About 10 elevators more are planned to be replaced or renovated during the second half-year.

7 Page 7 Commercial, industrial and public facility management. The Group companies continued to strengthen their positions in the area of management of commercial and public facilities. During the first half of this year the range of customers was extended several tens of new contracts were signed. A good deal of the contracts is of exceptional significance, dealing with the objects, requiring specific and especially highly qualified maintenance. One of such objects is the 22 solar power plants in Kaunas, Vilnius, Klaipėda and Utena districts, whose maintenance was entrusted to a Group company. In May a Group company commenced provision of facility management services to nine Impuls sports clubs throughout Lithuania. The company started providing its customers the automated energy monitoring system, giving the possibility to efficiently control buildings energy consumption, notice energy over-consumption in due time and take efficient measures in order to reduce energy costs. Among other innovations worthy of note is the fact that this year a Group company commenced providing maintenance services to newsstands throughout Lithuania. Totally 261 objects are maintained. In addition, a contract for maintaining 26 ORLEN petrol stations was signed. In the second half of this year the Group companies are going to continue their active participation in commercial, industrial and public facility management tenders, increase the area of maintained objects and expand the range of facility management services. Maintenance and cleaning of territories. The Group company Naujamiesčio Būstas won the tender for maintaining a part of the capital s territory, announced by the Vilnius City Municipality. The agreement was signed for the five years period. In the first half of the year the Company Group was extended by a new enterprise Mano Aplinka, a company, engaged in cleaning and territory maintenance. At present the Company provides services in Vilnius, Kaunas, Klaipėda and Biržai. In the future the company will also perform its activities in other cities and towns of the country. The new company takes over all the agreements, signed with the cleaning division of Naujamiesčio Būstas. The staff of the division is going to be transferred to Mano Aplinka. positions was reduced, there was an opportunity to raise salary to the full-time professionals employed in the Company; criteria applicable to the quality of works were improved and steps were taken to make the employees more loyal.

8 Page 8 3. Activities in foreign markets 3.1. Poland In the first half of this year a Group company performed active organic development. In June a Group company ZZN won the tender for administering the apartments, territories and other premises, belonging to Poznan city municipality. The total area of the object, transferred to ZZN, amounts to 1.35 million sq. m. The contract is signed for the period of four years, the contract value is PLN 24.7 million. Upon involving other associations ZZN increased the maintained area by more than 235 thousand sq. m. City Service also won other tenders in Poland this year. A Group company started to maintain 1.35 million sq. m. premises of the Financial Supervision Authority in Warsaw as well as the municipal dwellings in Siechnice and Olecko municipalities, the total area about 32 thousand sq. m. Reaching for more rapid development, the company s organizational structure was modified. 22 divisions were attached to 3 regions, regions directors were appointed from the existing employees. The LEAN implementation procedures were commenced: 2 companies performed audit of activities of 4 of the company s divisions, one of them is going to be chosen as the company s LEAN consultant. Upon reviewing and modifying the services and goods provision contracts, up to PLN 600 thousand is expected to be saved during the year. Audit of heating facilities was performed and activity guidelines were outlined. This should improve the division s activity indicators and extend the range of provided services. In the second half of the year a Group company is going to continue active participation in most administration services procurement tenders, organized by municipalities, strive for attracting new customers and increase the efficiency of activities. At present the total area of facilities, maintained by the Group company, amounts to more than 9 million sq. m 3.2. Russia During the first half of 2013 the Group companies continued the activities in the areas of apartment building administration, territories cleaning and heating metering equipment maintenance. The Group companies also actively participate in tenders for maintaining commercial facilities. A new company was launched, which, starting from 1 July commenced providing elevators maintenance services in Saint-Petersburg. In 2013

9 Page 9 the elevators maintenance service will be provided only to a part of the Group companies, however the volumes will grow in the future. Further on significant attention is dedicated to improving the efficiency of activities the activity optimization experience, gained in Lithuania, is being transferred by developing the LEAN projects. Upon completing one of the first LEAN projects, the heating metering equipment backup system was implemented, which provides the possibility to reduce the usual verification period 20 times, while not losing any revenue from the maintenance of heating metering equipment when performing the verification works. The projects, aimed at improving the quality of repair works and optimization of materials supply and warehouses operation are continued. At present the total area of the facilities, administered by the Group, amounts to about 4.2 million sq. m Latvia The Group company Riga City Service continued to develop the public sector facility management segment and extended the range of commercial facility management customers. In the first half of the year several especially important agreements were signed. Among them is the agreement with Latvian state energy company Latvenergo for maintaining the objects of its subsidiary Latvijas Elektriskie Tīkli. The total area is larger than 30 thousand sq. m. and the managed territory is 274 hectares. The company continued to successfully increase the area of maintained commercial facilities, signed the agreement and commenced providing complex facility management service to all the Iki stores, managed by the Palink company, operated in Latvia. At present Riga City Service maintains 52 Iki stores with the total area larger than 58 thousand sq. m. In the second half of the year a Group company is planning to commence administering apartment buildings, procure strategic companies and extend the range of customers in the commercial segment. At present the area of facilities, maintained by Riga City Service reaches 681 thousand sq. m., the managed territory amounts to 2.8 million sq. m.

10 Page Improving efficiency of activities In 2013 the Group companies activities were further improved in line with the LEAN optimization methodology. In the first half of the year the activities efficiency solutions, implemented in Lithuania, were commenced to be applied by the Group companies, operating on foreign markets in Russia, Poland and Latvia. In Lithuania LEAN was continued to be developed in different divisions of the Group companies. Especially significant attention was dedicated to involving employees of different profiles into the continuous improvement of activities. The processes attained active participation by managers of all levels. At present already 35% of all the Group companies employees in Lithuania are involved into the improvement processes, i. e. two times more than last year. In the first half of the year employees of the commercial segment participated in the LEAN activities especially actively, their involvement reached 70%. The LEAN changes had positive effect on the Group companies development and the sales processes. Upon purifying the customers needs, at present the Group companies not only maintain facilities, but also provide rational energy resources consumption services and solutions. In the second half of the year the LEAN optimization activities are going to be continued, dedicating especially large attention to the Group companies, operating on foreign markets. 5. Employees The National Association of Facility Administrators, in which the Group companies are members, has received the EU support, according to which the employees are going to be trained to develop their customer servicing, sales, meeting conducting and time planning skills. In turn, the managers are going to receive training on management peculiarities. In the first half of the year the Group companies visions and values were reviewed. The entire staff of the Group took active participation in the process. The values communication plan will be developed in the second half of the year. This year significant attention will continue to be dedicated to the staff s training and qualification development.

11 Page Management and Control of the Company 6.1. Structure of the Board As of 30 June 2013, the members of the Company board included: and surname Position Start of term End of term Andrius Janukonis Board Chairman April 30, 2013 April 30, 2017 Gintautas Jaugielavičius Board Member April 30, 2013 April 30, 2017 Darius Leščinskas Board Member April 30, 2013 April 30, 2017 Žilvinas Lapinskas Board Member April 30, 2013 April 30, 2017 They do not control any shares of the Company. Andrius Janukonis Andrius Janukonis (born in 1971) is the Chairman of the Board of (since 2009). He holds a Master s degree in Law. He works as a consultant for ICOR UAB and is the chairman of the Board of the Company (since 2004). Gintautas Jaugielavičius Gintautas Jaugielavičius (born in 1971) is a Member of the Board of (since 2005). He holds a Bachelor s degree in Economics. At present, he works as a consultant for ICOR UAB and is a member of the Board of the Company (since 2004). Darius Leščinskas Darius Leščinskas (born in 1968) is a Member of the Board of (since 2009). He holds a Master s degree in Law. At present, he works as a consultant for ICOR UAB and is a member of the Board of the Company (since 2004). Žilvinas Lapinskas Refer description below (paragraph 6.2).

12 Page Management of the Company As of June 30, 2013 and as of date of submission of this report, the key managers of the Company and of the Group are as follows:, surname Position within the Group Started working Žilvinas Lapinskas Jonas Janukėnas General Director and member of the Board of City Service AB Finance and Administration Director of City Service AB, member of the Board of Mano Būstas LT UAB Vytautas Turonis General Director of Mano Būstas LT UAB 2004 Tomas Augutavičius Chairman of the Board of the Group companies, operating in Russia 2006 Edvinas Paulauskas Executive Director of Mano Būstas LT UAB 2005 They do not control any shares of the Company. Žilvinas Lapinskas Žilvinas Lapinskas (born 1976) is the General Director (since 2004) and member of the Board (since 2010) of City Service AB. Commenced his activities within the Company in 1999 as the Commercial Director ( ). Ž.Lapinskas has completed studies in the area of business administration. At present the task of the General Director is managing the Group and taking care of planning and coordinating the important development projects in Russia, Poland and other markets In Eastern and Western Europe. Jonas Janukėnas Jonas Janukėnas (born 1976) has been holding office of the Company's Finance and Administration Director since Starting from July 2012 J.Janukėnas has also been serving as the Chairman of the Board of Mano Būstas LT UAB. Prior to that he held office of the Finance Director ( ) and senior auditor of Litesko UAB as well as the risk management coordinator in Vilnius branch of the Andersen Company ( ). J.Janukėnas holds the master's degree in business administration. The Finance and Administration Director is responsible for managing the Group's financial resources, functioning of the administrative staff, implementation of IT systems and the LEAN. Vytautas Turonis Vytautas Turonis (born 1972) is the General Director of Mano Būstas LT UAB and works as the Executive Manager for Lithuania at City Service AB. Commenced his activities within the Company as the Director of Markets Development Department ( m.), previously held office of the Marketing Director of Specialus Autotransportas UAB ( ). V.Turonis holds the bachelor's degree in international business. V.Turonis is responsible for the Group's activities on the entire territory of Lithuania.

13 Page 13 Tomas Augutavičius Tomas Augutavičius (born 1973) has been serving as the Chairman of the Board of City Service AB Group companies, operating in Russia since Commenced his activities within the Company as the head of Kaunas division ( ). T.Augutavičius holds the bachelor's degree in technology. The Chairman of the Board of Group companies, operating in Russia, is responsible for the current activities in the companies, operating in Russia. Edvinas Paulauskas Edvinas Paulauskas (born 1976) is the Executive Director of Маno Būstas LT UAB and the Commercial Manager at City Service AB. Prior to that he held the office of the Executive Director of City Service ( ) and his career in the City Service Group was started at the position of a project manager ( ). E.Paulauskas holds the qualification degree of a bachelor in environmental engineering. E.Paulauskas is responsible for the Group's activities in the area of commercial and public facility management and elevators management and renovation. 7. Data about agreements with intermediaries of public trading in securities On 27 March 2007 the Company and Swedbank AB concluded the contract on transfer of issuer s securities accounting which is valid today. On 27 November 2007 the Company signed a liquidity provider agreement with UAB FMĮ Orion Securities, which started a liquidity provider activity from 3 December The contract is still valid. 8. Data about issuer s securities traded on regulated markets On 30 June, 2013 all 31,610,000 ordinary registered shares of the Company were included into Official List of NASDAQ OMX Vilnius Stock Exchange, nominal value of one share LTL 1 each. ISIN Code of the shares is LT , trading code of the shares on NASDAQ OMX Vilnius Stock Exchange CTS1L. Trading of the shares on Vilnius Stock Exchange started on 8 June Structure of the Company Authorised capital and Shares During period from 1 January 2013 till 30 June 2013 authorised share capital of the Company was LTL 31,610,000. The authorised share capital of the Company was divided into 31,610 thousand ordinary registered shares with the nominal value of 1 LTL each. There are no any restrictions of share rights or special control rights for the shareholders settled in the Articles of Association of the Company. No shares of the Company are held by itself or its subsidiaries. No convertible securities, exchangeable securities or securities with changeable value or with the warrants or any other securities are issued by the Company. There are no outstanding acquisition rights or undertakings to increase share capital.

14 Page 14 All shares of the Company are paid up. All shares of the Company give equal rights to the shareholders of the Company. The Company has not issued any other class of shares than ordinary shares mentioned above. The shareholders shall have no other obligations to the Company except for the obligation to pay up, in the prescribed manner, all the shares subscribed for at their issue price. 10. Shareholders of the Company On 30 June 2013 the total number of shareholders of the Company was The distribution of the Company s shares among the shareholders on 30 June 2013: Number of shares held Owned percentage of the share capital and votes, % UAB ICOR, legal entity code , address: Konstitucijos av. 7, Vilnius, Lithuania AB East Capital Asset Management, registration no , address: Kungsgatan 33, Stokholm, Sweeden Genesis Asset Managers, LLP, registration no. OC , address: 21 Grosvenor Place, London, United Kingdom Other private and institutional shareholders % % % % Total 31,610, % 11. Related party transactions Related party transactions are provided in the Explanatory Note No. 10 to the Company s Consolidated interim Financial Statements for the six months of the year 2013.

15 Page Data on publicly disclosed information Since 1 January 2013 till 30 June 2013 the Company publicly disclosed in NASDAQ OMX GlobeNewswire system the following information: City Service group won a tender in Poznan Investor News En, Lt :32:31 EEST City Service consolidated results for the three months of 2013 Interim information En, Lt :41:32 EEST The Decisions of the Ordinary General Shareholders Meeting of City Service AB held on the 30th of April, 2013 Notification on material event En, Lt :30:33 EEST City Service AB annual information for the year 2012 Annual information En, Lt :30:33 EEST Accusations regarding City Service group company in Russia admitted to be false Investor News En, Lt :15:38 EEST Regarding intentions to sell the shares of Ecoservice UAB Notice on Ordinary General Shareholders Meeting of City Service AB On the decision of the Bank of Lithuania Notification on material event En, Lt :00:33 EEST Notification on material event En, Lt :30:34 EEST Notification on material event En, Lt :00:32 EET City Service consolidated results for the year 2012 Interim information En, Lt :00:34 EET 13. General information on and City Service group Reporting period of the interim consolidated report This interim Consolidated Report is prepared for the period of the six months of 2013, ended on 30 June Issuer, data and contacts Company code: Contacts of the Company: public company (limited liability legal person) 28 January 1997, Board of Vilnius City Konstitucijos av. 7, LT Vilnius, Lithuania Smolenskas st. 12, LT Vilnius, Lithuania Lvovo st. 25, LT , Vilnius, Lithuania LT , Swedbank AB phone (+370 5) , fax (+370 5) , Register of Enterprises of Republic of Lithuania, VĮ Registrų centras 13.3 City Service group s data and contacts On 30 June 2013 City Service group consists of and the following subsidiaries (hereinafter referred to as the Group ): Company Country Share of the stock held by the Group as of 30 June 2013 Share of the stock held by the Group as of 31 December 2012 Main activities UAB Antakalnio būstas Lithuania 100% 100% Administration of dwelling-houses

16 Page 16 UAB Aukštaitijos būstas Lithuania 100% 100% Administration of dwelling-houses UAB Baltijos būsto priežiūra Lithuania 100% 100% Dormant UAB Baltijos liftai Lithuania 100% 100% Elevator installing & tech. support UAB Baltijos NT valdymas Lithuania 100% 100% Real estate management UAB Baltijos pastatų valdymas Lithuania 100% 100% Administration of dwelling-houses UAB Dainavos būstas Lithuania 100% 100% Dormant UAB Danės būstas Lithuania 100% 100% Administration of dwelling-houses UAB Economus Lithuania 100% 100% Administration of dwelling-houses UAB Ecoservice Lithuania 100% 100% Collection and removal of waste UAB Justiniškių būstas Lithuania 100% 100% Administration of dwelling-houses UAB Jūros būstas Lithuania 100% 100% Administration of dwelling-houses UAB Kauno centro būstas Lithuania 100% 100% Dormant UAB Karoliniškių būstas Lithuania 100% 100% Administration of dwelling-houses UAB Komunalinių įmonių kombinatas Lithuania 99.71% 99.71% Collection and removal of waste UAB Lazdynų butų ūkis Lithuania 100% 100% Administration of dwelling-houses UAB Lazdynų būstas Lithuania 100% 100% Dormant UAB Mano aplinka Lithuania 100% - Maintenance and cleaning of territories and premises UAB Mano būstas LT Lithuania 100% 100% Commercial real estate management and building maintenance UAB Mano sauga Lithuania 99,27% 51% Security services UAB Namų priežiūros centras Lithuania 100% 100% Administration of dwelling-houses UAB Naujamiesčio būstas Lithuania 100% 100% Administration of dwelling-houses UAB Nemuno būstas Lithuania 100% 100% Administration of dwelling-houses UAB Nemuno būsto priežiūra Lithuania 100% 100% Dormant UAB Pagėgių savivaldybės komunalinis ūkis Lithuania 66% 66% Dormant UAB Pašilaičių būstas Lithuania 100% 100% Administration of dwelling-houses UAB Pempininkų būstas Lithuania 100% 100% Administration of dwelling-houses UAB Radviliškio būstas Lithuania 100% 100% Administration of dwelling-houses UAB Scandinavian Industrial Waste Management Lithuania 100% - Dormant UAB Skolos LT Lithuania 100% 100% Debt collection services UAB Specialus autotransportas Lithuania 100% 100% Collection and removal of waste UAB Šiaulių būstas Lithuania 100% 100% Administration of dwelling-houses UAB Šiaulių liftas Lithuania 100% 100% Elevator installing & tech. support UAB Šilutės būstas Lithuania 99.84% 99.84% Administration of dwelling-houses UAB Vėtrungės būstas Lithuania 100% 100% Administration of dwelling-houses UAB Vilkpėdės būstas Lithuania 100% 100% Administration of dwelling-houses UAB Vilniaus turgus Lithuania 100% - Dormant UAB Vingio būstas Lithuania 100% 100% Administration of dwelling-houses UAB Viršuliškių būstas Lithuania 100% 100% Administration of dwelling-houses UAB Žaidas Lithuania 99.33% 99.33% Administration of dwelling-houses UAB Žardės būstas Lithuania 100% 100% Administration of dwelling-houses UAB Žirmūnų būstas Lithuania 100% 100% Administration of dwelling-houses

17 Page 17 SIA Riga City Service Latvia 100% 100% Commercial real estate management and building maintenance City Service Poland Sp.z.o.o INTERBUD MAX SP. Z.O.O Poland Warsaw Poland Warsaw 100% 100% Dormant 100% 100% Dormant Zespół Zarządców Nieruchomości WAM Sp. z o.o. Poland 100% 100% Administration of dwelling-houses Warsaw ТOB Київ Сіті Сервіс Ukraine 100% 100% Administration of dwelling-houses OAO Cити Сервис / ОАО City service ЗAO Cити Сервис / ZAO City service OAO Специализи-рованное ремонтноналадочное управление ООО Жилкомсервис 3 Фрунзенского района Russia, St. Petersburg Russia, St. Petersburg Russia, St. Petersburg Russia, St. Petersburg 100% 100% Administration of dwelling-houses 100% 100% Administration of dwelling-houses 100% 100% Construction and engineering 80% 80% Administration of dwelling-houses ООО «Чистый дом» OOO «Управляющая компания -1» OOO «ПРОМИНТЕР - управление проектами» OOO «Управляющая компания -2» OOO «Управляющая компания -3» OOO «Управляющая компания -4» OOO «Управляющая компания -5» OOO «УК -5» OOO «Управляющая компания -6» (legal entity code ) OOO «Управляющая компания -6» (legal entity code ) OOO «Жилищная Управляющая компания 6» OOO «Объединенная управляющая компания 7» Russia, St. Petersburg Russia, Stavropol Russia, Stavropol Russia, Stavropol Russia, Stavropol Russia, Stavropol Russia, Stavropol Russia, Stavropol Russia, Stavropol Russia, Stavropol Russia, Stavropol Russia, Stavropol OOO «Обслуживающая управляющая компания-7» Russia, Stavropol Russia, OOO «Управляющая компания 8» Stavropol OOO «Управляющая компания 10» Russia, Stavropol 100% 100% Maintenance and cleaning of territories 76% 76% Administration of dwelling-houses 100% 100% Administration of dwelling-houses 76% 76% Administration of dwelling-houses 76% 76% Administration of dwelling-houses 76% 76% Administration of dwelling-houses 76% 76% Administration of dwelling-houses 100% 100% Administration of dwelling-houses 76% 76% Administration of dwelling-houses 100% 100% Administration of dwelling-houses 100% 100% Administration of dwelling-houses 100% 100% Administration of dwelling-houses 100% 100% Administration of dwelling-houses 100% 100% Administration of dwelling-houses 100% 100% Administration of dwelling-houses

18 Page 18 Subsidiaries operating in Lithuania: UAB Mano būstas LT 19 June 2007, VĮ Registrų Centras Company code: Konstitucijos av. 7; LT Vilnius, Lithuania Smolenskas st. 12; LT Vilnius, Lithuania LT , Swedbank AB Contacts of the Company: Phone (+370 5) , Fax (+370 5) , UAB Mano aplinka 17 June 2013, VĮ Registrų Centras Company code: Contacts of the Company: Medeinos st. 8 A Vilnius, Lithuania Ulonų st. 5 Vilnius, Lithuania A/S LT AB Swedbank - info@manobustas.lt UAB Namų Priežiūros Centras 2 May 2001, Ministry of Economy of Lithuania Company code: Medeinos st. 8A, LT Vilnius, Lithuania Medeinos st. 8A, LT Vilnius, Lithuania

19 Page 19 LT , Swedbank AB Contacts of the Company: Phone (+370 5) , Fax (+370 5) , UAB Pašilaičių būstas 9 July 1992, Board of Vilnius City Company code: Medeinos st. 8A; LT Vilnius, Lithuania Medeinos st. 8A; LT Vilnius, Lithuania LT , Swedbank AB Contacts of the Company: phone (+370 5) , fax (+370 5) , info@pasilaiciubustas.lt UAB Vilkpėdės būstas 9 July 1992., Board of Vilnius City Company code: Architektų st. 13, LT Vilnius, Lithuania Architektų st. 13, LT Vilnius, Lithuania LT , Swedbank AB Contacts of the Company: Phone , Fax (+370 5) , - info@vilkpedesbustas.lt

20 Page 20 UAB Lazdynų butų ūkis 11 June 1992., Board of Vilnius City Company code: Architektų st. 13; LT Vilnius, Lietuva Architektų st. 13; LT Vilnius, Lietuva LT , Swedbank AB Contacts of the Company: Phone , Fax (+370 5) , - info@lazdynubustas.lt UAB Skolos LT 6 April 2010., VĮ Registrų Centras Company code: Medeinos st. 8A, LT Vilnius, Lithuania Medeinos st. 8A, LT Vilnius, Lithuania LT Swedbank AB Contacts of the Company: Phone (+370 5) , Fax (+370 5) , info@skoloslt.lt LR juridinių asmenų registras, VĮ Registrų centras UAB Antakalnio būstas 11 June 1992, Board of Vilnius City Company code: Antakalnio st. 51, LT Vilnius, Lithuania Antakalnio st. 51, LT Vilnius, Lithuania LT , Swedbank AB

21 Page 21 Contacts of the Company: Phone (+370 5) , Fax (+370 5) , UAB Naujamiesčio Būstas 11 July 1992, Board of Vilnius City Company code: Medeinos st. 8A, LT Vilnius, Lithuania Smolenskas st. 12, LT 03201, Vilnius, Lithuania LT , Swedbank AB Contacts of the Company: Phone (+370 5) , Fax (+370 5) , UAB Karoliniškių būstas 18 June 1992, Board of Vilnius City Company code: A. J. Povilaičio st. 18, LT Vilnius, Lithuania A. J. Povilaičio st. 18, LT Vilnius, Lithuania LT , Swedbank AB Contacts of the Company: Phone (+370 5) , Fax (+370 5) ,

22 Page 22 UAB Viršuliškių būstas 18 June 1992, Board of Vilnius City Company code: A. J. Povilaičio st. 18, LT Vilnius, Lithuania A. J. Povilaičio st. 18, LT Vilnius, Lithuania LT , Swedbank AB Contacts of the Company: Phone (+370 5) 24420, Fax (+370 5) , UAB Ecoservice Limited liability company 6 April 1996, VĮ Registrų Centras Vilnius Branch Company code: Gariūnų st. 71, LT Vilnius, Lithuania Jočionių st. 13, LT Vilnius, Lithuania LT , Swedbank AB Contacts of the Company: Phone (+370 5) , Fax (+370 5) , ecoservice@ecoservice.lt UAB Baltijos Liftai 6 April 2010., VĮ Registrų Centras Vilnius Branch Company code: Medeinos st. 8A, LT Vilnius, Lithuania Medeinos st. 8A, LT Vilnius, Lithuania LT Swedbank AB

23 Page 23 Contacts of the Company: Phone (+370 5) , UAB Specialus Autotransportas 16 November 1990, VĮ Registrų Centras Klaipėda Branch Company code: Taikos st. 13, LT Neringa, Lithuania Šilutės rd. 101, LT Klaipėda, Lithuania A/s LT , AB DNB bank Contacts of the Company: Phone ( ) , Fax ( ) , UAB Justiniškių būtas 22 May 1991., VĮ Registrų Centras Vilnius Branch Company code: Justiniškių st. 62 A, LT Vilnius, Lithuania Justiniškių st. 62 A, LT Vilnius, Lithuania LT , Swedbank AB Contacts of the Company: Phone (+370 5) , Fax (+370 5) , Registrų centras

24 Page 24 UAB Nemuno būstas 4 December 2001 VĮ Registrų Centras Kaunas Branch Company code: Maironio st. 14B-4, LT-44298, Kaunas, Lithuania Maironio st. 14B-4, LT-44298, Kaunas, Lithuania LT , AB SEB bank Contacts of the Company: Phone ( ) ,fFax ( ) , - info@bustas.net UAB Economus 12 July 2006 VĮ Registrų Centras Vilnius Branch Company code: Subačiaus st. 17-2, LT Vilnius, Lithuania Subačiaus st. 17-2, LT Vilnius, Lithuania LT , AB Swedbank Contacts of the Company: Phone (+370 5) ; info@economus.lt UAB Žardės būstas 12 June 1992, Board of Klaipėda City Company code: Taikos av. 117, LT-94231, Klaipėda, Lithuania Taikos av. 117, LT-94231, Klaipėda, Lithuania LT , Swedbank AB

25 Page 25 Contacts of the Company: Phone ( ) , Fax ( )362721, UAB Vingio būstas 12 June 1992, Board of Klaipėda City Company code: I.Simonaitytės st. 29, LT-95131, Klaipėda, Lithuania Taikos av. 117, LT-94231, Klaipėda, Lithuania LT , Swedbank AB Contacts of the Company: Phone ( ) , Fax ( ) , UAB Jūros būstas 12 June 1992, Board of Klaipėda City Company code: Minijos st. 130, LT-93244, Klaipėda, Lithuania Minijos st. 130, LT-93244, Klaipėda, Lithuania LT , Swedbank AB Contacts of the Company: Phone ( ) ,Fax ( ) , Register of Enterprises of Republic of Lithuania, VĮ

26 Page 26 UAB Pempininkų būstas 12 June 1992, Board of Klaipėda City Company code: Šilutės rd. 40, LT-94137, Klaipėda, Lithuania Taikos av. 117, LT-94231, Klaipėda, Lithuania LT , Swedbank AB Contacts of the Company: Phone/Fax ( ) , UAB Vėtrungės būstas 16 August 1991, Board of Klaipėda City Company code: Kauno st. 5, LT Klaipėda, Lithuania Kauno st. 5, LT Klaipėda, Lithuania LT , Swedbank AB Contacts of the Company: Phone( ) , Fax ( ) , UAB Danės būstas 16 August 1991, Board of Klaipėda City Company code: S. Daukanto st. 37, LT Klaipėda, Lithuania Kauno st. 5, LT Klaipėda, Lithuania LT , Swedbank AB

27 Page 27 Contacts of the Company: Phone ( ) , Fax (+8 46) , UAB Aukštaitijos būstas 16 April 2010 VĮ Registrų Centras Vilnius Branch Company code: Medeinos st. 8A, LT Vilnius, Lithuania Medeinos st. 8A, LT Vilnius, Lithuania A/s LT , AB Swedbank Contacts of the Company: Phone (+370 5) , Fax (+370 5) , e-meil UAB Šilutės būstas 13 November 1990, VĮ Registrų Centras Klaipėda Branch Company code: Lietuvininkų st. 60; LT Šilutė, Lithuania Lietuvininkų st. 60; LT Šilutė, Lithuania LT , AB "Swedbank" Contacts of the Company: Phone/Fax (8 441) , - info@silutesbustas.lt LR juridinių asmenų registras, VĮ Registrų centras. Klaipėdos filialas.

28 Page 28 UAB Šiaulių būstas 1 June 1992, 9 December 2010 re-registered as UAB Saules Valda, Board of Šiauliai City Company code: Žemaitės st. 20, LT Šiauliai, Lithuania Žemaitės st. 20, LT Šiauliai, Lithuania LT , AB "Swedbank" Contacts of the Company: Phone ( ) , Fax ( ) , info@siauliubustas.lt UAB Šiaulių Liftas 19 April 1993, VĮ Registrų Centras Šiauliai Branch Company code: Liejyklos st. 3, LT-78148, Šiauliai, Lithuania Liejyklos st. 3, LT-78148, Šiauliai, Lithuania LT , Swedbank AB Contacts of the Company: Phone ( ) , Fax ( ) , info@siauliuliftas.lt Šiauliai Branch UAB Žaidas 30 July 1992, Board of Alytus town Company code: Žiburio st. 10-2, LT-63235, Alytus, Lithuania Žiburio st. 10-2, LT-63235, Alytus, Lithuania

29 Page 29 LT , Swedbank AB, Alytus Branch Contacts of the Company: Phone ( ) 25651, Fax ( ) 23710, UAB Radviliškio būstas 13 December 1990, Board of Šiauliai town Company code: Maironio st. 65, LT Radviliškis, Lithuania Maironio st. 65, LT Radviliškis, Lithuania LT , Swedbank AB Contacts of the Company: Phone ( ) Fax ( ) 69120, Šiauliai Branch UAB Komunalinių Įmonių Kombinatas 19 February 1992, Trakai Company code: Gedimino st. 34, LT Trakai, Lithuania Gedimino st. 34, LT Trakai, Lithuania LT , Swedbank AB Contacts of the Company: Phone ( ) 55395, Fax. ( ) 55395,

30 Page 30 UAB Žirmūnų būstas 9 July 1992 d., Vilnius Company code: Kalvarijų st. 156, LT Vilnius, Lithuania Kalvarijų st. 156, LT Vilnius, Lithuania LT , AB Swedbank Contacts of the Company: Phone (+370 5) , Fax. (+370 5) , info@zirmunubustas.lt UAB Mano sauga 17 May 2011, Vilnius Company code: Medeinos st. 8A, LT Vilnius, Lithuania Medeinos st. 8A, LT Vilnius, Lithuania LT , AB Swedbank Contacts of the Company: Phone (+370) , info@msauga.lt Subsidiaries operating in Latvia, Poland and Russia Federation SIA Riga City Service Limited liability company 19 April 2006, Register of Enterprises of Republic of Latvia Riga division Company code: The registered address of the company: G. Astras iela 8b, Riga, Latvia

31 Page 31 G. Astras iela 8b, Riga, Latvia Contacts of the company: Phone (+371) , Fax (+371) , Register of Legal Entities of Republic of Latvia Zespół Zarządców Nieruchomości WAM Sp.z.o.o. Limited liability company 29 September 2004, Polish register of enterprises: National Court registre (Krajowy Rejestr Sądowy KRS) Company code: The registered address of the company: Wolnej Wszechnicy 5, Warszawa, Poland Wolnej Wszechnicy 5, Warszawa, Poland Contacts of the company: Phone (+48 22) , Fax. (+48 22) , Polish register of enterprises: National Court registre (Krajowy Rejestr Sądowy KRS) ОАО Сити Сервис public company with the limited liability (открытое акционерное общество) 3 November 2003, St. Petersburg, Russia Company code: The registered address of the company: , St. Petersburg, ул. Стойкости д , St. Petersburg, Кондратьевский пр., д.15, к. 3 Contacts of the company: Phone (+7 812) , Fax (+7 812) , cityservice@spcs.spb.ru St. Petersburg Federal Office, Inter regional inspection No.15 (Межрайонная инспекция Федеральной службы 15 по Санкт-Петербургу) ЗАО Сити Сервис (закрытое акционерное общество)

32 Page February 2007, St. Petersburg, Russia Company code: The registered address of the company: , St. Petersburg, ул. Кораблестроителей, д. 31, корп , St. Petersburg, ул. Кораблестроителей, д. 31, корп. 2 Contacts of the company: Phone (+7 812) , Fax (+7 812) , cityservice@bk.ru St. Petersburg Federal Office, Inter regional inspection No.15 (Межрайонная инспекция Федеральной службы 15 по Санкт-Петербургу) ОАО Специализированное ремонтно-наладачное управление public company with the limited liability (открытое акционерное общество) 2 June 2003, St. Petersburg, Russia Company code: The registered address of the company: , St. Petersburg, Бобруйская ул., д , St. Petersburg, Кондратьевский пр., д.15, к.3 Contacts of the company: Phone (+7 812) , Fax (+7 812) , - specrnu@rambler.ru St. Petersburg Federal Office, Kalinino regional inspection (Инспекция Федеральной налоговой службы по Калининскому району Санкт-Петербурга) ООО Жилкомсервис 3 Фрунзенского района company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , Санкт-Петербург, ул. Купчинская, д. 30, корп , Санкт-Петербург, ул. Купчинская, д. 30 корп. 2 Contacts of the company: phone (+7 812) , Fax (+7 812) St. Petersburg Federal Office, Inter regional inspection No.15 (Межрайонная инспекция Федеральной службы 15 по Санкт-Петербургу)

33 Page 33 ООО «Чистый дом» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , Санкт-Петербург, Кондратьевский пр., д. 15, к , Санкт-Петербург, Кондратьевский пр., д. 15, к. 3 Contacts of the company: Phone (+7 812) , Fax (+7 812) , St. Petersburg Federal Office, Inter regional inspection No.15 (Межрайонная инспекция Федеральной службы 15 по Санкт-Петербургу) OOO «ПРОМИНТЕР-управление проектами» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , г.ставрополь, ул.пирогова, 15 а , г.ставрополь, ул.пирогова, 15 а Contacts of the company: Phone 8(8652) , Fax 8 (8652) , - info.prominter@prominter.net Federal tax inspection of Stavropolis region industrial district (ИФНС России Ставропольского края по Промышленному району города Ставрополя) OOO «Управляющая компания-1» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , г.ставрополь, ул.серова, , г.ставрополь, ул. Серова 6/1 Contacts of the company: Phone 8 (8652) , Fax 8 (8652) , - serova6-1@mail.ru Federal tax inspection of Stavropolis region industrial district (ИФНС России Ставропольского края по Промышленному району города Ставрополя)

34 Page 34 OOO «Управляющая компания-2» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , г.ставрополь, ул.серова, , г.ставрополь, ул. Серова 6/1 Contacts of the company: Phone 8 (8652) , Fax 8 (8652) , - serova6-1@mail.ru Federal tax inspection of Stavropolis region industrial district (ИФНС России Ставропольского края по Промышленному району города Ставрополя) OOO «Управляющая компания-3» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , г.ставрополь, ул.ленина, , г.ставрополь, ул. Краснофлотская, 32 Contacts of the company: Phone 8 (8652) , Fax 8 (8652) , - stav5tv@yandex.ru Federal tax inspection of Stavropolis region industrial district (ИФНС России Ставропольского края по Промышленному району города Ставрополя) OOO «Управляющая компания-4» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , г.ставрополь, ул.ленина, , г.ставрополь, ул. Краснофлотская, 32 Contacts of the company: Phone 8 (8652) , Fax 8 (8652) , - stav5tv@yandex.ru Federal tax inspection of Stavropolis region industrial district (ИФНС России Ставропольского края по Промышленному району города Ставрополя)

35 Page 35 OOO «Управляющая компания-5» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , г.ставрополь, ул.бруснева,2/3а , г.ставрополь, ул.буйнакского, 39/а Contacts of the company: Phone 8 (8652) , Fax 8 (8652) , - yk5stav@yandex.ru Federal tax inspection of Stavropolis region industrial district (ИФНС России Ставропольского края по Промышленному району города Ставрополя) OOO «УК-5» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , г.ставрополь, ул.бруснева,2/3а , г.ставрополь, ул. Буйнакского, 39/а Contacts of the company: Phone 8 (8652) , Fax 8 (8652) , yk5stav@yandex.ru Federal tax inspection of Stavropolis region industrial district (ИФНС России Ставропольского края по Промышленному району города Ставрополя) OOO «Жилищная управляющая компания 6» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , г.ставрополь, ул.доваторцев, 44/2, , г.ставрополь, ул..50 лет ВЛКСМ,14а Contacts of the company: Phone 8 (8652) , Fax 8 (8652) , - yk6stav@yandex.ru Federal tax inspection of Stavropolis region industrial district (ИФНС России Ставропольского края по Промышленному району города Ставрополя)

36 Page 36 OOO «Управляющая компания-6» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , г.ставрополь, ул.50 лет ВЛКСМ,8а/ , г.ставрополь, ул. 50 лет ВЛКСМ, 14 Contacts of the company: Phone 8 (8652) , Fax 8 (8652) , - yk6stav@yandex.ru Federal tax inspection of Stavropolis region industrial district (ИФНС России Ставропольского края по Промышленному району города Ставрополя) OOO «Управляющая компания-6» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , г.ставрополь, ул. 50 лет ВЛКСМ,8а/ , г.ставрополь, ул. 50 лет ВЛКСМ, 14а Contacts of the company: Phone 8 (8652) , Fax 8 (8652) , - yk6stav@yandex.ru Federal tax inspection of Stavropolis region industrial district (ИФНС России Ставропольского края по Промышленному району города Ставрополя) OOO «Объединенная управляющая компания-7» company with the limited liability (oбщество с ограниченной ответственностью) Company code: The registered address of the company: , г.ставрополь, пр.кулакова 27/ , г.ставрополь, пр. Доваторцев,59/2 Contacts of the company: Phone 8 (8652) , Fax 8 (8652) , - Federal tax inspection of Stavropolis region industrial district (ИФНС России Ставропольского края по Промышленному району города Ставрополя)