Joint stock Company

BRIVAIS VILNIS
(Enterprise registration number 40003056186)

INTERIM FINANCIAL REPORT for the 9 months of 2011 (unaudited)

SalacgrIva 2011

JSC Brivais vilnis

Address: 1Ostas Street, Salacgriva, LV-4033 Enterprise registration number: 40003056186

Financial Statement of 3 quarters-year 2011

CONTENTS

GENERAL INFORMATION MANAGEMENT REPORT REPORT OF BOARDS RESPONSIBILITY BALANCE SHEET INCOME STATEMENT CASH FLOW STATEMENT STATEMENT OF CHANGES IN EQUITY NOTES TO THE FINANCIAL STATEMENTS

3 4 5 6 8 9 10 11

JSC Brivais vilnis

Address: 1Ostas Street, Salacgriva, LV-4033 Enterprise registration number: 40003056186

Financial Statement of 3 quarters-year 2011

GENERAL INFORMATION

Name of the company Legal status of the company Number, place and date of registration

Brivais vilnis Joint Stock Company 40003056186 Riga, 7 February 1992

Registered office Major shareholders

1Ostas Street, Salacgriva, LV-4033, Latvia A Corporation SIA (40.88%), Registration No.40003799285 8 Rigas Street, Adazi, LV-2164, Latvia Brivais vilnis Company Ltd (49.97%), Registration No.40103202073 1Ostas Street, :Salacgriva, LV-4033, Latvia

Members of the Board

Arnolds Babris (Chairman of the Board) Maris Trankalis (Manager) Zinaida Ekmane (Lawyer) Vasilijs Ilusins (Cold-storage manager) Karlis Hauks Anda Caune Ilona Drikina Vera Korcaka

Members of the Council

Financial period

1 January 30 September, 2011

JSC Brivais vilnis

Address: 1Ostas Street, Salacgriva, LV-4033 Enterprise registration number: 40003056186

Financial Statement of 3 quarters-year 2011

MANAGEMENT REPORT

November 30, 2011 The types of activities performed by the JSC Brivais Vilnis are processing and canning of fish and fish products, wholesale of food products, including fish, shellfish and mollusc, and other commercial activities classified nowhere else. On May 14, 2002 the company was registered in the Common commercial register of the Republic of Latvia. Year 2011 is the 20th year of operation since the Company was transformed into a Joint Stock Company. In 9 months of 2011 the Company produced a total of 17.4 million cans of various types (134) of fish products, including 7.3 million cans of sprat. Production capacity compared with 9 months of 2010 has increased by 17%. It is due to exports increase. In 9 months of 2011 there were sold 17.3 million cans for LVL 6.0 million. The profit compared to 9 months of 2010 has decreased due to the rapid increase of raw material prices. The financial result of 9 months of 2011 is profit of LVL 123 384. This profit is from economic activities of the Company. Net turnover for 9 months of 2011 is LVL 6 053 thousand. Result for 9 months of 2011: Gross profit (LVL) Gross profit (%)

631 thousand 10.4

The Companys goal is to continue transformation in accordance with the EU quality requirements, real decrease the production expenses, optimize the management structure to enable the Company to compete and strengthen its position on the market of canned fish. The JSC Brivais Vilnis will continue cooperation with the Riga Stock Exchange, and remain listed in the free list of Riga Stock Exchange in 2011. The Company continues to work on adoption of new markets in Western Europe and other world. The Company continues development of new products and new packaging and works on improvement of quality of the current assortment also in this year.

Arnolds Babris Chairman of the Board

JSC Brivais vilnis

Address: 1Ostas Street, Salacgriva, LV-4033 Enterprise registration number: 40003056186

Financial Statement of 3 quarters-year 2011

REPORT ON BOARDS RESPONSIBILITY

November 30, 2011 The management of the JSC Brivais vilnis is responsible for preparation of financial statement of the Company. Interim financial statements of the Company are not subject for audit. Financial statements are prepared on basis of accounting entries and source documents and give a real conception about financial position of the Company on the 30 of September 2011. Financial statements are composed in accordance with accounting standards of the Republic of Latvia, based on continuation principle of business activities. The management of the JSC Brivais vilnis is responsible for fulfillment of legislation requirements of the Republic of Latvia.

Arnolds Babris Chairman of the Board

JSC Brivais vilnis

Address: 1Ostas Street, Salacgriva, LV-4033 Enterprise registration number: 40003056186

Financial Statement of 3 quarters-year 2011

BALANCE SHEET
ASSETS 30.09. 2011 LVL NON-CURRENT ASSETS Intangible Projects, licences Excess cost over net assets of businesses acquired TOTAL Tangible assets Land, buildings and constructions Equipment and machinery Other fixtures and fittings, tools and equipment Advances for fixed assets Bilding TOTAL Long term financial investments Interest in capital of related companies TOTAL TOTAL NON-CURRENT ASSETS CURRENT ASSETS Inventories Raw materials Finished goods and goods for sale TOTAL Receivables Trade receivables Other receivables Prepaid expenses TOTAL Cash TOTAL CURRENT ASSETS 10797 1142 11939 2 463 176 31 771 77 603 98 214 220 2 670 984 2 000 2 000 2 684 923 2672 2672 2 494 666 32 645 47 698 84 722 2 659 731 2 000 2 000 2 664 403 3289 3289 2 503 682 35 805 47 957 15 363 1 625 16988 3 504 784 45 206 110 419 139 746 313 3 800 468 2 846 2 846 3 820 302 3 802 0 3802 3 549 590 46 450 67 868 120 549 0 3 784 456 2 846 2 846 3 791 104 4 680 0 4680 3 562 419 50 946 68 237

31.12. 2010 LVL

30.09. 2010 LVL

30.09. 2011 EUR

31.12. 2010 EUR

30.09. 2010 EUR

2 587 444 2 000 2 000 2 592 733

3 681 601 2 846 2 846 3 689 127

416 955 381 113 798 068 1 312 827 264 023 59 919 1 636 769 7 831 2 442 668

368 618 348 650 717 268 1 457 444 162 020 2 906 1 622 370 49 529 2 389 167

373 797 554 663 928 460 1 169 207 304 353 3 235 1 476 795 10 908 2 416 163

593 274 542 275 1 135 548 1867985 375671 85257 2 328 912 11 143 3 475 603

524 496 496 084 1 020 580 2073756 230534 4135 2 308 425 70 473 3 399 478

531 865 789 214 1 321 080 1663632 433055 4603 2 101 290 15 521 3 437 890

TOTAL ASSETS

5 127 591

5 053 570

5 008 896

7 295 905

7 190 582

7 127 017

JSC Brivais vilnis

Address: 1Ostas Street, Salacgriva, LV-4033 Enterprise registration number: 40003056186

Financial Statement of 3 quarters-year 2011

EQUITY AND LIABILITIES

30.09. 2011 LVL EQUITY Share capital Long term investment revalution reserve Retained earnings brought forward for the period TOTAL LIABILITIES Non-current liabilities Loans from credit institutions Other loans Deferred corporate income tax liabilities TOTAL Current liabilities Loans from credit institutions Other loans Prepayments received from costumers Trade payables Taxes payables Other liabilities Accrued liabilities TOTAL TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES 3 099 450 1 567 550 (3 025 348) 123 384 1 765 036 31.12. 2010 LVL 3 099 450 1 583 709 (3 376 110) 350 761 1 657 810 30.09. 2010 LVL 3 099 450 1 589 095 (3 376 109) 309 563 1 621 999 30.09. 2011 EUR 4 410 120 2 230 423 (4 304 682) 175 560 2 511 420 31.12. 2010 EUR 4 410 120 2 253 415 (4 803 772) 499 088 2 358 851 30.09. 2010 EUR 4 410 120 2 261 078 (4 803 770) 440 468 2 307 897

1 933 526 40 530 67 116 2 041 172 223 164 241 126 588 794 152 974 101 467 13 858 1 321 383 3 362 555 5 127 591

1 933 526 6 137 67 116 2 006 779 168 673 254 367 160 213 585 327 41 372 112 084 66 945 1 388 981 3 395 760 5 053 570

2 102 199 13 098 80 638 2 195 935 56 068 262 340 620 852 131 789 91 356 28 557 1 190 962 3 386 897 5 008 896

2 751 160 57 669 95 497 2 904 326 317 534 343 091 837 778 217 662 144 375 19 718 1 880 159 4 784 485 7 295 905

2 751 160 8 732 95 497 2 855 389 240 000 361 932 227 963 832 845 58 867 159 481 95 254 1 976 342 4 831 731 7 190 582

2 991 160 18 637 114 738 3 124 534 79 778 373 276 883 393 187 519 129 988 40 633 1 694 586 4 819 120 7 127 017

JSC Brivais vilnis

Address: 1Ostas Street, Salacgriva, LV-4033 Enterprise registration number: 40003056186

Financial Statement of 3 quarters-year 2011

INCOME STATEMENT
3quarters of the 3quarters of the 3 quarters of the 3quarters of the year 2011 year 2010 year 2011 year 2010 LVL LVL EUR EUR Net turnover Cost of sales Gross profit (loss) Distribution costs Administrative expenses Other operating income Other operating expenses Profit/loss from operations Interest receivable and similar income Interest payable and similar expenses Profit /(Loss) before taxes Profit taxes Other taxes Profit (loss) for the reporting period Earnings (loss) per share (13 652) 123 384 0.040 6 052 942 (5 421 394) 631 548 (99 013) (367 379) 158 832 (133 254) 4 539 604 (3 737 589) 802 015 (106 365) (307 673) 171 525 (127 473) 8 612 561 (7 713 949) 898 612 (140 883) (522 733) 225 998 (189 603) 6 459 275 (5 318 110) 1 141 165 (151 344) (437 779) 244 058 (181 378)

91 070 (144 768) 137 036

59 855 (151 252) 340 632 (18 799) (12 270) 309 563 0.010

129 581 (205 986) 194 985 (19 425) 175 560 0.057

85 166 (215 212) 484 676 (17 459) 440 468 0.142

JSC Brivais vilnis

Address: 1Ostas Street, Salacgriva, LV-4033 Enterprise registration number: 40003056186

Financial Statement of 3 quarters-year 2011

CASH FLOW STATEMENT

For 3 quarters 2011 LVL Cash flows to operating activities Profit/loss before taxes Adjustments for: Amortization and depreciation Interest expenses Provisions Gain from fluctuations of currency exchange Non-current assets revaluation reserve write-off (Profit) loss as a result of investment Operating profit or loss before working capital changes Decrease (increase) in inventories Decrease (increase) in receivables Increase (decrease) in payables Cash used in operations Interest paid Corporate income, real estate tax paid Net cash flows to operating activities Cash flows to investing activities Purchase if fixed assets Proceeds from sales of fixed and intangible assets Net cash flows to investing activities Cash flows to financing activities Received loans Repaid loans Lease payments Net cash flows to financing activities 210 841 (166 038) 30 840 75 643

For 3 quarters 2010 LVL

For 3 quarters 2011 EUR

For 3 quarters 2010 EUR

137 036 65 414 125 362 (53 086) (2 039) (16 159) (3 832) 252 696 (80 800) (14 399) (55 761) 101 736 (125 156) (18 137) (41 557)

340 632 64 686 132 497 (27 062) (2 866) (16 159) (3 719) 488 009 (360 626) (36 039) 152 578 243 922 (130 802) (17 425) 95 695

194 985 93 076 178 374 (75 535) (2 901) (22 992) (5 452) 359 554 (114 968) (20 488) (79 341) 144 757 (178 081) (25 806) (59 130)

484 676 92 040 188 526 (38 506) (4 078) (22 992) (5 292) 694 374 (513 125) (51 279) 217 099 347 070 (186 114) (24 794) 136 162

(82 409) 6 625 (75 784)

(16 413) 115 (16 298)

(117 257) 9 427 (107 831)

(23 354) 164 (23 190)

37 456 (124 605) (8 786) (95 935)

300 000 (236 251) 43 881 107 630

53 295 (177 297) (12 501) (136 503)

Change in cash and cash equivalents Cash and cash equivalents at the begin of the reporting period Cash and cash equivalents at the end of the reporting period

(41 698)

(16 538)

(59 331)

(23 531)

49 529 7 831

27 446 10 908

70 473 11 143

39 052 15 521

JSC Brivais vilnis

Address: 1Ostas Street, Salacgriva, LV-4033 Enterprise registration number: 40003056186

Financial Statement of 3 quarters-year 2011

STATEMENT OF CHANGES IN EQUITY

Share capital

Long term investment revalua tion reserve

Retained earnings

Profit (loss) the reporting period

Total

Share capital

Long term investment revaluation reserve

Retained earnings

Profit (loss) the reporting period

Total

Bala nce as at 01 January 2010 Revaluation reserve write-o ff Reclassifica tion of profit Prof it of th e 2010 Bala nce as at 31 December 2010 Reclassifica tion of profit Prof it of th e reportin g period Revaluation reserve write-o ff Bala nce as at 30 September 2011

LVL 3 099 4 50

LVL 1 605 254 (21 545)

LVL (3 326 332) (49 777)

LVL (49 777) 49 777 350 761

LVL 1 328 595 (21 545) 350 761 1 657 811 123 384 (16 159)

EUR 4 410 120 4 410 120

2 284 071 (30 656)

EUR (4 732 944) (70 826) -

EUR (70 826) 70 826 499 088 499 088 (499 088) 175 560

EUR 1 89 0 420 (30 656) 49 9 088 2 35 8 853 17 5 560 (22 992)

3 099 4 50

1 583 709

(3 376 109) 350 761

350 761 (350 761) 123 384

2 253 415

(4 803 770) 499 088

(16 159) 3 099 4 50 1 567 550 (3 025 348) 123 384

(22 992) 4 410 120 2 230 423 (4 304 682) 175 560

1 765 036

2 51 1 420

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JSC Brivais vilnis

Address: 1 Ostas Street., Salacgriva, LV-4033 Enterprise registration number: 40003056186

Financial Statement of the 3quarters of the 2011

NOTES TO THE FINANCIAL STATEMENTS ACCOUNTING POLICIES

I Summary The financial statements of AS Brivais vilnis have been prepared in accordance with the law of The Republic of Latvia On Financial Statements of the Companies and the Latvian Accounting Standards issued by the Accounting Council of Ministry of Finance of the Republic of Latvia applicable in the reporting year. The financial statements are prepared on historical cost basis. The monetary unit used in the financial statements is lat (LVL), the monetary unit of the Republic of Latvia. The financial statements cover the period 1 January 2011 through 30 September 2011.

II Earning recognition and net turnover Net turnover is the total value of finished production and goods sold as well as services provided without discounts and VAT during the year. Other earnings are recognised at the moment of their origin or at the moment when legal rights on such earnings arise. Other earnings are caused by exclusion of fixed assets and sales of current assets. Other interest receivable and similar income is income that is not caused directly by the operating activities.

III Intangible and tangible fixed assets Intangible and tangible fixed assets have been appreciated according to their acquisition cost. The cadastral value of land has been assessed. The write-off value of intangible non-current assets as software is performed on a straight-line basis annually for equal amount. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. The following depreciation rates were established and applied: % per annum Buildings and constructions Technological equipment and machinery Other fixed assets Computing and similar devices 15 20 10 50 33

IV Redeeming leasehold Such fixed assets as transport that have been purchased on financial lease including the take-over of the related risks have been booked according to their non-lease sales price. Expenditures of leasing interest and similar payments have been included in the income statement of the period it occurred. V Receivables Trade and other receivables are recognised and carried at original invoice amount less an allowance for any non-collectable amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Receivables are disclosed in balance sheet at the original invoice amount less provision made. Provision on doubtful receivables is made evaluating each receivable individually. Bad debts are written off when recovery is deemed impossible. All receivable amounts stated in the balance have to be received during the year after the date of balance. VI Inventories The valuation of inventories in financial accountancy is being done using continuous inventory method. The inventories have been evaluated at their purchase or production cost price using FIFO method. Decreased value of inventories is written-off as costs of the reporting year.

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JSC Brivais vilnis

Address: 1 Ostas Street., Salacgriva, LV-4033 Enterprise registration number: 40003056186

Financial Statement of the 3quarters of the 2011

VII Corporate income tax The corporate income tax for the reporting year has been calculated according to the legislative requirements of the Republic of Latvia. The applied tax rate for the corporate income tax in the year 2011 is 15%. VIII Foreign currency converting The measure of value and currency used in the annual report is lat (LVL) - official currency of the Republic of Latvia. All monetary positions of assets, equities and liabilities have been converted into lat according to the currency exchange rate by Bank of Latvia on the last day of accounting year 30.09.2011. 30.09.2011. 1 EUR 0.702804 1 USD 0.516 The profit or loss from the fluctuations on foreign exchange rates is shown in the income statement or loss account of the particular reporting period. For the informative purpose the, above stated positions have been converted to EUR according to the exchange rate of Bank of Latvia on 30.09. 2011. As the prepaid expenses there are stated insurance costs, all kind of subscription and similar kind of expense for the year 2011. All liabilities are to be settled within the period of year except the ones stated in the interpretation of the balance sheet. All taxes payable to budget are for the current month.

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