MANAGEMENT REPORT

May 31, 2018

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.

Year 2018 is the 27^th year of operation since the Company was transformed into a Joint Stock Company. In the 1^st quarter of 2018 the Company produced a total of 3.2 million cans of various types (125) of fish products.      3.3 million cans were sold for EUR 1.7 million.

The financial result of the reporting period is a loss of EUR 159 thousand and these losses are from economic activities of the Company. The Company`s results were affected by activities of competitors, reducing the sales prices and selling the canned fish below the cost in order just to maintain the market segment.

The Company`s goal was to reduce costs, measures are being taken to reduce the administrative costs of the Company in order to maintain the solvency and the sales market.

In 2018, the Company continues to work on development of new sales markets in Western Europe, North America, South America and rest of the world. The Company works on introduction of innovative packaging. In July we will perform cosmetic repairs at the canning plant. We are working on development of new products.

The JSC „Brivais vilnis” makes production only from natural raw materials, completely excluding modified raw materials, favor and color enhancer and preservatives in production. The high quality of products is the key that allows the JSC „Brivais vilnis” to be competitive in canned fish market.

Arnolds Babris

Chairman of the Board