Audited annual report of AS VALMIERAS STIKLA ŠĶIEDRA for

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Consolidated turnover of VALMIERA GLASS GROUP – 95.8 million euros

In 2020, the consolidated turnover of VALMIERAS STIKLA ŠĶIEDRA AS (hereinafter – the Company) and of its subsidiaries (hereinafter – VALMIERA GLASS GROUP or the GROUP) amounted to 95.8 million euros , a decrease of 3.3 million euros compared to 2019 (year-on-year). . The autonomous turnover of VALMIERA STIKLA SKIEDRA AS in 2020 amounted to 83.2 million euros (-6.2% compared to 2019). Although the volume of net sales decreased for both the Company and the GROUP, the results are considered to be a satisfactory performance given the strong market fluctuations and uncertainty during the period under review.

At the start of 2020, the GROUP decided to shut down the activities of its subsidiaries PD VALMIERA GLASS USA Corp. and VALMIERA GLASS USA Trading Corp. As of June 2, 2020, all business assets of PD VALMIERA GLASS USA Corp. were transferred, as well as all employees, customers, supply, rental and other enforceable contracts were transferred to Saint-Gobain Adfors America, Inc. In February 2021, the two US companies of the GROUP were dissolved.

Key financial indicators for the continuation of GROUPS activities over the two-year period 2019-2020:

TEUR 2019 2020
Net sales 99 165 95 840
EBITDA 8 312 13 684
EBIT (1,620) 5 192
Net profit / loss attributable to owners of parent company (3,802) (2,260)

In 2020, the products produced by the Company were exported to 51 countries, with an export share of 96%. The main sales markets of the GROUP changed in 2020: the majority with 73% of the total production was sold in the countries of the European Union as the largest market currently, 10% in North America, 2% in the CIS and 15% in other exporting countries (including Switzerland, Japan, South Korea, Macedonia, United Arab Emirates, etc.), an increase of 6% linked to the increase in sales in South Korea and in Macedonia. Following the shutdown of the glass melting furnace, the launch of the Chapter 11 bankruptcy and the suspension of the active business activities of the US subsidiary in mid-2019, in 2020 the share of sales in North America decreased by 11% compared to 2019.

The COVID-19 pandemic has significantly affected the GROUP’s sales and operating results, which is illustrated by the fact that the gross sales of the Company and the UK subsidiary are respectively 19% and 37% lower than initial budget. Nevertheless, in all product segments, sales volumes increased for products with high added value, such as E-glass textured fabrics and non-woven materials with thermal resistance of 600 + ° C and fiber products. high-grade SiO2 glass with a thermal resistance of 1000+ ° C.

In 2020, the average workforce in continuing operations of the GROUP was 1,274, of which 1,159 people work at AS VALMIERAS STIKLA ŠĶIEDRA. VALMIERA GLASS UK Ltd. employed an average of 115 employees.
When PD VALMIERA GLASS USA Corp. ceased operations on June 2, 2020, all employment contracts of the US entity have been transferred to the new owner of the company. Over the period from January 1 to June 2, 2020, the American subsidiary employed an average of 59 people.

In 2020 and until the date of issue of these consolidated and separate financial statements, the Company is implementing a legal protection procedures plan (hereafter – LPP Plan) and has complied with its payment obligations towards creditors in accordance with the approved LPP Plan. The Company continues to inform its creditors about the process of executing the LPP plan on a monthly basis.

At the end of the reporting period, on February 18, 2021, the majority shares of the Company (83.14%) were acquired by Duke I S.à rl With the change of shareholder and the long-term refinancing of our banking liabilities, the Company is able to make investments to gradually counter the positive development of the market. In addition to the furnace repair of the larger W2.1 glass melting furnace, the company is planning further investments in the future to further increase its market position and competitiveness.

The Company has published its individual and consolidated financial statements of the GROUP for the year 2020. The individual financial statements reflect the financial position and financial performance of AS VALMIERAS STIKLA ŠĶIEDRA. The consolidated financial statements of the GROUP provide information on the consolidated financial position and the financial performance of all the companies of VALMIERA GLASS GROUP. The company’s auditors, KPMG Baltics AS, have issued separate independent audit reports for each of these financial statements.

According to the statutory auditors’ report on the individual financial statements, the individual financial statements of the Company give a true and fair view of the financial situation of the Company as at December 31, 2020, of its financial performance and of its cash flows for the year. . For more information, please consult the independent auditors’ report attached to the financial statements.

The Company informs that the auditors have issued a disclaimer on the consolidated accounts of the GROUP for the year 2020. Due to the liquidation planned by the American subsidiary of PD VALMIERA GLASS USA Corp. in 2020/2021, the management of the GROUP deemed it impossible to audit the financial statements of the American subsidiary for the year ended December 31, 2020. As indicated above, the liquidation plan of the American subsidiary was submitted to the approval by the United States Bankruptcy Court on September 10, 2020. Due to the lack of audits of the financial statements of the American subsidiary for the year 2020, the auditors were unable to carry out audit procedures to satisfy the financial information of the American subsidiary as at December 31, 2020 and for the fiscal year ended December 31, 2020, which are included in the consolidated financial statements of the GROUP. Consequently, the statutory auditors were unable to issue an opinion on the Group’s consolidated financial statements for the whole of 2020.

For more details, please see the attached files:

  • Separate and consolidated audited annual report for the year 2020;
  • Corporate governance report 2020;
  • Sustainable development report 2020;

The remuneration report for the year 2020 is available on the company’s web page.

Further information:
LIKE VALMIERAS STIKLA ŠĶIEDRA
Phone: +371 6420 2216
Email: [email protected]
www.valmiera-glass.com



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