MANAGEMENT REPORT

August 30, 2013

The types of activities performed by the JSC “Brivais vilnis” are processing and canning of fish and fish products, wholesale of food products 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 2013 is the 22^nd year of operation since the Company was transformed into a Joint Stock Company. In the 1^st half of 2013 the Company produced a total of 12.6 million cans of various types (133) of fish products, including 6.2 million cans of sprat. 10.8 million cans were sold for LVL 4.3 million.

The financial result of the 1^st half of 2013 is profit of LVL 256 032. This profit is from economic activities of the Company.

Net turnover of the 1^st half of 2013 is LVL 4 362 thousand.

Result of the 1^st half of 2013:                  

Gross profit (LVL)                                                                                    614 538

Gross profit (%)                                                                                           14.09

Despite the fact that traditional sales markets were oversaturated in the 1^st half of 2013, the JSC “Brivais vilnis” posted good sales results.

The Company’s goal is to continue transformation in accordance with the EU quality requirements, real decrease the production expenses, to enable the Company to compete and strengthen its position on the market of canned fish. The Company continues work on adoption of new markets in Western Europe and other world in 2013.

We have started enlargement of canned fish sterilization area that will increase production capacity by 15 – 20%. At the same time we will perform energy efficiency measures and will invest in new production equipment.

The JSC “Brivais vilnis” will continue cooperation with the “NASDAQ OMX Riga” JSC and remain listed in the free list of stock exchange in 2013. The Company continues development of new products and works on improvement of quality of the current assortment also in this year.

The Company was stopped the production in June, 2013 to carry annual repair of factory and districts out and employees could take their leaves. The Company has restarted the production on the 1^th of August, 2013.