In 2014 net turnover was 11 960 623 EUR that was by 446 071 EUR or 3.87% more than in 2013 (11 514 552 EUR). One of the reasons for increase is that at the moment of preparing these financial statements the net turnover consisted also of received payments from State Ltd. "Autotransporta direkcija" for the year 2013 in amount of 325 627 EUR which were not recognized in the year 2013 income.

In 2014 the principal business of NORDEKA JSC was passenger transportation services on intercity routes according to four Concession agreements of 24 November 2008 signed with State Ltd. “Autotransporta direkcija” on providing passenger transportation services in regional intercity routes.

In 2014 net turnover was 11 960 623 EUR that was by 446 071 EUR or 3.87% more than in 2013 (11 514 552 EUR). One of the reasons for increase is that at the moment of preparing these financial statements the net turnover  consisted also of received payments from  State Ltd. "Autotransporta direkcija" for the year 2013 in amount of 325 627 EUR which were not  recognized in the year 2013 income.

In 2014 the Company participated in State Ltd. "Autotransporta direkcija" organized procurement tender  "The award of rights of providing public transport services by coaches in the regional intercity route network parts "Center-1A"/ "Center-1B"/ "Center-1C" (the tender was announced on 15 August 2014). In accordance with the results of the tender, the Company on 19 February, 2015, signed contracts with State Ltd. “Autotransporta direkcija” on the provision of the above mentioned services as of March 2015.

On 6 January 2015, the Company signed the cooperation agreement with the Secretariat of the Latvian Presidency of the Council of the European Union on providing services within the tender “Rental of coaches with drivers” (Procurement ID No. LPESPA 2014/20) organized by the Secretariat. This agreement was concluded for the period till 30 June 2015; the contract amount will not exceed EUR 300 000 excluding VAT.

In 2015 the course of development and financial results of the Company will mainly depend on the Company’s ability to fulfil regulations of inland passenger transportation agreements stated in Concession agreements of 24 November 2008 “Public transportation services in regional intercity routes Nr.2008/01-K-C2/4-01 (Centrs 2); Nr. 2008/01-K-DR/3-01 (Dienvidrietumi); Nr. 2008/01-K-DA/5-01 (Dienvidaustrumi); Nr. 2008/01-K-A/2-01 (Austrumi)” and newly adopted regulation of Cabinet of Ministers No 46, approved on 21 January  2014 on amendments to the Cabinet of Ministers Regulations No 341, that changes the procedures of determining the maximum compensation amount of costs. The Cabinet of Ministers regulations mentioned above obviously can negatively influence further financial performance of the Company, as the criteria used to calculate loss compensations are substantially changed as compared to those effective in 2008, when the Concession agreements were signed.

In January 2015 the management of the Company filed a petition in the Constitutional Court of the Republic of Latvia about the non-conformity of the 3rd paragraph of the regulation of Cabinet of Ministers No 341, approved on 15 May 2012, with the Constitution of the Republic of Latvia. On 13 February 2015, the Latvian Constitutional Court decided to initiate proceedings because of the occurrence of the violation of fundamental rights. The Company's requirement provides uncovered loss compensation for the year 2013 in total of 487 798.28 EUR (342 826.58 LVL).

Net result after taxes is loss in the amount of 65 913 EUR.

Main financial results (loss for the year) are not significantly different from non-revised period report.

“Nordeka” JSC Annual report for the year ended 31 December 2014, prepared in accordance with Latvian Statutory Requirements, the Independent Auditor’s Report and Corporate governance report for year 2014 please find attached.

Prepared by:

Chief accountant

Ginta Unda

T. 67500286

ginta@nordeka.lv