CONSOLIDATED ANNUAL REPORT...

A B U S I N E S S M A D E O F

energy and peopleA B U S I N E S S M A D E O F

energy and people

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A B U S I N E S S M A D E O F

energy and people

NATURAL GAS AND POWER

PETROLEUM PRODUCTS

COMMODITIES

TELECOMMUNICATION SERVICES

REAL ESTATE

SATELLITE AND INTERNET TELEVISION

INVESTMENTS AND

PROJECTSA B U S I N E S S M A D E O F

energy and people

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5C O N S O L I D A T E D A N N U A L R E P O R T 2 0 1 74 L A M A E N E R G Y G R O U P a . s . , N A F L O R E N C I 2 11 6 / 1 5 , N O V É M Ě S T O , 11 0 0 0 P R A H A 1 , C Z E C H R E P U B L I C

Canada• mining and processing of crude petroleum• transport of petroleum commodities• oil trade• oil storage

United States • oil refining & treatment and storage

Czech Republic• extraction of crude petroleum and natural gas• energy commodities trading• production, distribution and sale of heat• production of electricity• mobile and fixed telephony and internet connection services• satellite and internet television• real estate

Slovakia • gas trading

Mongolia • geological survey

In 2017, LAMA ENERGY GROUP had to temporarily restrict trading on the Canadian market due to the contractual obligations arising from the successful sale of an oil terminal in Canada.

In 2017, LAMA ENERGY GROUP managed to increase EBITDA by one fifth in all areas of business with the exception of North American operations that were subject to a mandatory two-year break.

In 2017, LAMA ENERGY GROUP continued its oil field exploration and development project for oil extraction from oil sands in Canada; in June 2018, the Group obtained regulatory permit for commercial oil production of 10,000 barrels per day.

In 2017, together with its partner, KEYERA ENERGY INC., LAMA ENERGY GROUP prepared a project to build a 4.5 million barrel oil storage facility in Cushing, Oklahoma, USA, the world›s most important crossroads of physical oil trading.

LAMA ENERGY GROUP recorded increased revenues and a highly positive EBITDA of DIGI CZ in 2017; DIGI CZ engages in telecommunication services, particularly satellite and internet TV under the DIGI TV brand name.

In 2017, LAMA ENERGY GROUP continued its strategy of optimal residual oil and natural gas recovery in the Czech Republic, which is expected to still generate major revenues for many years to come.

In the highly competitive Czech gas and electricity market, LAMA ENERGY GROUP further strengthened its energy customer base in 2017, reaching nearly 79,000 connection points.


CONTENTS

I. Report of the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

II. Holding Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

III. Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

IV. LAMA ENERGY GROUP Consolidated Financial Statements . . . . . . . 28

V. Related Parties Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

VI. Other Information for Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46


Dear Readers,

You are holding in your hands the sixth Annual Report of the holding LAMA ENERGY GROUP (hereinafter the “LAMA Group”) that includes the Group’s reported financial results for 2017. The present report will start somewhat untraditionally, with a reminder of the key milestone of our economic statistics achieved in 2016; without this knowledge, you would be unable to correctly interpret the subsequent year’s results.

In last year‘s annual report, we reported EBITDA increase by more than 60% year-on-year, i.e. to CZK 1.256 billion. The main reason for the increase was a unique transaction of the company PETROLAMA ENERGY CANADA INC. (hereinafter “PLEC”) comprising the sale of a crude oil treatment terminal located in the Canadian province of Saskatchewan, including the related contracts and supplies. Total proceeds from the sale amounted to CAD 53 million (Canadian dollars). With the sale, we reached a significant appreciation of our investment in just three years and also earned significant funds to be used for further development of the Group. This was a one-off transaction that affected EBITDA solely in 2016. With the sale, PLEC also took on an obligation to restrict oil commodities trading on the Canadian market for two years.

Now back to the 2017 financial results: The Group reported consolidated revenues of CZK 6.309 billion and EBITDA of CZK 595 million. The indicators dropped year-on-year due to the one-off transaction described in the previous paragraph, i.e. the sale of PLEC‘s oil terminal, which was reflected as a „positive shock“ to the group‘s 2016 results. Leaving PLEC’s results aside and focusing on the results of the rest of the Group will give us a more accurate picture: EBITDA, excluding PLEC, amounted to CZK 508 million in 2016 and exceeded CZK 654 million in 2017, reflecting an increase by almost one-third. The LAMA Group has, in fact, continued its dynamic growth, boosted by a one-off 2016 “bonus” of 53 million Canadian dollars from the sale of the oil terminal.

Year 2013 2014 2015 2016 2017EBITDA without PLEC/ in millions of CZK 548 475 566 508 653

North America Activities

The contractual restriction of operations on the Canadian oil market ended in June 2018 and PLEC resumed its business activities in the location, including the search for suitable investment projects in Canada and in the US.

One of such projects is the WILDHORSE TERMINAL project to build a 4.5 million barrel oil storage and treatment terminal near Cushing, Oklahoma, the USA; the project is currently in the phase of preparation for the construction that is to start in the second half of 2018. The project is carried out as a joint venture with the American company KEYERA ENERGY INC. and the total investment exceeds USD 207 million; LAMA Group‘s stake in the project is currently 10 percent. The new oil tanks should be put into operation in 2020. Cushing is a strategic crossroads of several US pipelines and one of the largest oil terminals in the world. The complex of huge storage facilities and interconnecting pipelines covers an area of over 25 km2. Cushing is also the official settlement point for oil trading on the NYSE.

Another project is the project of oil extraction from oil sands in Alberta, Canada; the project continues with PETROLAMA NAMUR OIL SANDS EXPLORATION INC.’s 39.3 percent stake. In June 2018, the project obtained the regulatory permit for commercial oil production of 10,000 barrels per day.

Considering interesting synergy effects, both North American projects, the construction of the Cushing terminal and the opening of oil deposits in Alberta, will benefit the LAMA Group for a long time in the future.

Services for end customers in the Czech Republic

In terms of the Group’s history, the sale of energy to end customers in the Czech Republic has been the Group’s oldest service; the segment is particularly serviced by LAMA energy a.s. At the end of 2017, the company supplied gas or electricity to 73,868 connection points in the Czech Republic. The customer base in the highly competitive Czech market has gained stability and showed moderate growth year-on-year. In addition, gas was supplied to more than 5,000 connection points by Gas International a.s., a smaller supplier acquired by LAMA ENERGY GROUP in 2016. The Group seeks long—term presence in the energy market for end users; as a result, the Group is ready to further invest in the takeover of small suppliers under reasonable economic conditions.

In terms of both the number of subscribers and the economic results, the activities of DIGI CZ s.r.o. constitute the Group’s most significant service in the retail segment; the company delivers television broadcasting via internet and satellite platforms, with particular focus on exclusive sports programs and family programs. In addition, in 2017, the company expanded its telecommunication services portfolio to include both fixed and mobile telephony and DSL internet connection. Revenues increased from CZK 361 million to CZK 556 million year-on-year, and EBITDA went from red back to black, i.e. from CZK (65) million to CZK 128 million. It is worth noting that the service has a significant growth potential. The LAMA Group bought DIGI TV from the original Romanian owner at the end of 2015 in a condition requiring significant investments to modernize the technology and extend the program offer. The investments had major impact on the 2016 results. The year 2017 has demonstrated that the acquisition was a step in the right direction that enabled continuous growth of revenues and positive results of operations.

Extraction of commodities and energy production in the Czech Republic

A very significant part of LAMA Group‘s business, historically, is the gas and oil extraction in the South Moravian region of the Czech Republic carried out by LAMA GAS & OIL. Despite seasonal fluctuations in gas prices, the company has steadily recorded positive economic results; over the last five years, its total profit before tax amounted to CZK 947 million. Even though the volume of extraction gradually decreases as a result of the non-renewable nature of the natural resource, LAMA GAS & OIL will continue to steadily generate significant revenues for many more years without the need of any major investment. In addition, thanks to the „home-court advantage“ of local extraction, the Group has gained valuable experience and a frame of reference that can be used with the forthcoming project in Alberta, Canada. LAMA Group has also had success in the heat industry. The contribution to EBITDA of the Otrokovice and Kyjov heating plants was CZK 306 million in 2017. Investments in the Czech heat industry have proved to be viable and to bring a stable long-term return.

Conclusion

Those who have followed the LAMA Group‘s business on a continuous basis for an extended period of time and have read our previous annual reports will not be surprised by the content of this introduction and the other parts of the present report. The key features of our Group are: a long-term stability, sustainable growth, development of activities and willingness to enter, after careful preparation and consideration of all risks, new markets that are somehow related to the existing business. The LAMA Group‘s success also relies on stable personnel: Our team of key managers who also hold minority shareholdings in the Group has not changed for a long time.

To conclude, we must, as always, thank our business partners, colleagues and customers, because the reported annual results stem from the relationships between people and companies.

REPORT OF THE BOARD OF DIRECTORSI.

Petr LamichChairman of the Board of Directors


In the following section of our annual report,

we would like to briefly introduce the activities

of the key companies of our group.

0

0 10,000 16,00012,000 14,000 18,000 20,000 28,00026,00024,00022,0008,0006,000

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

2,000 4,000

Revenue

EBITDA 2017 2016 2015 2014 2013

MCZK

Equity

Total assets

LEGfinancial

Indicator Unit 2013 2014 2015 2016 2017

Revenue MCZK 15,391 28,052 18,094 11,249 6,309

EBITDA MCZK 610 703 792 1,256 595

Total assets MCZK 7,842 7,795 8,580 9,090 8,433

Equity MCZK 2,326 2,426 2,431 2,669 2,306

LEGcommo

dities

Indicator Unit 2013 2014 2015 2016 2017

Sale of petroleum products mio. bbl 10.79 11.90 12.07 3.59 1.43

Sale of gas TWh 4.19 4.44 3.48 3.67 3.56

– own extraction TWh 0.50 0.48 0.42 0.35 0.35

Sale of electricity TWh 1.24 1.21 1.03 1.01 1.07

– own production TWh 0.18 0.17 0.18 0.17 0.18

Sale of heat PJ 1.73 1.50 1.67 1.78 1.80

– own production PJ 1.73 1.50 1.67 1.78 1.80

Other commodities mio t 0.05 0.06 0.06 0.07 0.10

Note: Data include the entity Petr Lamich – LAMA, which is not included in the consolidated unit.

Consolidated results of the LAMA Group


LGO

Indicator Unit 2013 2014 2015 2016 2017

Revenue MCZK 375 344 293 226 194

EBITDA MCZK 292 273 179 91 112

Total assets MCZK 760 824 825 796 791

Equity MCZK 718 804 810 770 764

2017 2016 2015 2014 2013

MCZK

0 800700600500400200 300100

Revenue

EBITDA

Total assets

Equity

LAMA GAS & OIL s.r.o.LAMA GAS & OIL s.r.o. (LGO) is one of three companies actively engaged in the prospecting, exploration and extraction of oil and natural gas deposits in the Czech Republic. The Company was founded in 1996. In 1996–2000, the Company’s principal business was consultancy in the field of petroleum geology, identifying suitable investment opportunities in hydrocarbon exploration and extraction and trade.

In 2000, LGO began hydrocarbon research and exploration in an allotted exploratory territory near the town of Břeclav. This exploratory work resulted in the localization of an oil and flammable natural gas deposit in the Poštorná district. Through rigorous, highly professional work, the Company has to date localized several hydrocarbon deposits in the area. The Company currently operates 13 active wells and supplies its customers with an average of 90 thousand m3 of natural gas a day from five surface extraction sites. At the same time, petroleum extraction is ongoing at volumes reaching 15 to 20 m3/day. The continuing decline in energy commodity prices on world markets had major impact on the year-on-year drop in revenues. EBITDA, on the other hand, grew, which is a positive factor.

Investments of previous years and the optimization of extraction have laid a solid foundation to generate financial resources that may be used to invest in new projects throughout the Group.

LE

Indicator Unit 2013 2014 2015 2016 2017

Revenue MCZK 5,040 4,737 3,774 3,657 3,480

EBITDA MCZK 28 11 91 148 90


Equity MCZK 168 173 242 356 318

2017 2016 2015 2014 2013

MCZK

0 2,0001,5001,000500250 750 1,250 1,750

EBITDA

Total assets

Equity

0 5,0004,0003,0002,0001,000

Revenue

LAMA energy a.s.LAMA energy a.s. (LE) is an experienced, traditional and reliable natural gas and electricity supplier. Through a wide range of supplies, we are able to satisfy retail consumers in the household segment as well as the largest energy consumers in the Czech Republic. We have also been supplying gas to Slovakia since 2011.

Unlike single-purpose commercial firms only engaged in the resale of commodities, LAMA energy belongs to a group that undertakes its own gas extraction and electricity generation. We base our work on a flexible pricing policy and individualized approach to customers. This has enabled us long term to increase the number of satisfied customers and thus be ranked among the principal alternative suppliers of energy on the Czech and Slovak markets.

Through nearly 74 thousand connection points the Company supplied a total of 3.42 TWh of natural gas and 0.65 TWh of electricity, with 1.08 TWh of natural gas and 0.16 TWh of electricity, respectively, going to household and retail customers. The annual revenue decrease was caused mainly by falling energy commodity prices on world markets and further elimination of trading transactions. The necessity to react to price developments together with major one-off operating costs had an impact on the decrease of EBITDA and after-tax profit year-on-year. The reduction in equity was due to the payment of a share in profit for previous years.


Gas International s.r.o.Gas International (GI) was included in the consolidated unit on September 1, 2016. The company’s business is identical with that of LE, i.e. natural gas and electricity supplies to about 5,000 end customers. The company is particularly oriented on the household and retail segments, using special additional services.

Teplárna Otrokovice a.s.Teplárna Otrokovice a.s. (TOT) joined LAMA Group in June 2013. TOT is a leading producer of heat and electricity through cogeneration, which guarantees the highest possible operational efficiency. The total installed thermal output of five boilers is 309 MW and total electric power generated by two turbines is 50 MW. TOT operates a hot water network 53 km in length and supplies heat to nearly 10,000 households and dozens of firms in Otrokovice, Napajedla and Zlín-Malenovice. Over the next period, more than CZK 0.75 billion will be invested in further modernization to ensure environmental compliance. The positive increase of all major indicators is particularly due to the higher volumes of energy supplies and related energy services.

GI

Indicator Unit 2013 2014 2015 2016 2017

Revenue MCZK 160 126

EBITDA MCZK 22 27

Total assets MCZK 111 132

Equity MCZK (2) 19

TOT

Indicator Unit 2013 2014 2015 2016 2017

Revenue MCZK 1,245 1,101 1,144 1,173 1,253

EBITDA MCZK 292 213 239 248 261


Equity MCZK 527 519 536 562 597

2017 2016

MCZK

2017 2016 2015 2014 2013

MCZK

0 0200 2,500150 2,00050 500 1,000100 1,500

Revenue

Total assets

Equity

Equity

Total assets

Revenue

EBITDA

EBITDA


DIGI CZ s.r.o.DIGI CZ s.r.o. (DCZ), a telecommunications services company operating mainly in the retail segment, completed its satellite and Internet TV platform upgrade in 2017, expanded the range of exclusive sports content broadcast and allowed customers to take advantage of a wider portfolio of telecommunication services. These changes entailed significant investment and operating costs, which were the main reason of negative changes in the company’s equity, yet will allow for an increase in revenues with a positive impact on EBITDA in the future.

DCZ

Indicator Unit 2013 2014 2015 2016 2017

Revenue MCZK 361 556

EBITDA MCZK (65) 128

Total assets MCZK 1,340 1,149

Equity MCZK (376) (511)

2017 2016

MCZK

0 1,400600 1,000 1,200800400−500 −350 200−200

2017 2016 2015

MCZK

0 250−50 50 100 150 200

TEPLÁRNA KYJOV, a.s.Teplárna Kyjov, a.s. (TKY) joined LAMA Group at 1 February 2015. The principal business of TKY is the production and distribution of heat and provision of supplementary energy services. To produce heat, the Company primarily uses waste heat from the neighboring glass production lines of VETROPACK MORAVIA GLASS. In 2015, the Company recognized an allowance against fixed asset of CZK 81 million. The allowance, which had a one-off negative impact on EBITDA in the current period, represents the difference between the Company’s value based on an expert’s valuation performed at the time it joined the Group and its actual book value; the allowance will be gradually released in the subsequent period.

TKY

Indicator Unit 2013 2014 2015 2016 2017

Revenue MCZK 64 79 76

EBITDA MCZK (37) 44 45

Total assets MCZK 219 210 199

Equity MCZK 69 70 71

Equity

Total assets

EBITDA

Revenue

Equity

Total assets

EBITDA

Revenue


PETROLAMA NAMUR OIL SANDS EXPLORATION INC.PETROLAMA NAMUR OIL SANDS EXPLORATION INC. (PNOSE) is the second largest owner of the Namur crude oil deposit in Alberta, Canada. In 2018, the company obtained the regulator’s permit to extract 10,000 bbl/day of oil. The preparation of the extraction project is currently under way.

PNOSE

Indicator Unit 2013 2014 2015 2016 2017

Revenue MCZK 0 0 0 0 0

EBITDA MCZK (4) (1) (3) 0 (3)


Equity MCZK 577 611 789 853 800

2017 2016 2015 2014 2013

MCZK

0 600500400300100 700 900800200

PETROLAMA ENERGY CANADA INC.PETROLAMA ENERGY CANADA INC. (PLEC) is the most important foreign company in which LAMA ENERGY GROUP has an equity investment. The principal business of PLEC is the purchase, blending, storage, transport and sale of crude oil originating in Canada on the North American market. In May 2016, a substantial part of the company’s business activities and inventory, including the Alida crude oil terminal, was sold for a purchase price of CAD 53 million. The transaction had a positive impact on the company’s results in 2016. Nevertheless, the obligation to restrict trading on the Canadian market which the company took on with the sale of assets in 2016 had a negative impact on the company’s results reported in 2017. In the reported period, the company sought to acquire new business opportunities, particularly in the USA. The economic benefits will, however, not be fully recognized until the subsequent period.

PLEC

Indicator Unit 2013 2014 2015 2016 2017

Revenue MCZK 15,033 22,028 12,604 5,448 803

EBITDA MCZK 80 227 226 748 (58)

Total assets MCZK 1,106 1,141 976 652 420

Equity MCZK 213 385 450 353 268

2017 2016 2015 2014 2013

MCZK

0 1,200150 300 750450 900600 1,050

0 22,00018,000 20,00014,000 16,0006,000 10,0002,000 4,000 8,000 12,000

Equity

Total assets

EBITDA

Revenue

Revenue

EBITDA

Total assets

Equity


Petr Lamich – LAMAPetr Lamich (PL), operating under the trade name Petr Lamich – LAMA, narrowed its originally broad range of commercial activities to trade in fuels, heavy fuel oil, scrap metal and chemical products. Through its proactive approach, the Company has established a strong position with its business partners, enabling it to satisfy their needs in the long term. Key trade flows are primarily directed toward manufacturing and energy. The results achieved by Petr Lamich – LAMA are not included in the LAMA ENERGY GROUP consolidation unit, but are included in this Annual Report to provide a complete picture of LAMA Group results.

PL

Indicator Unit 2013 2014 2015 2016 2017

Revenue MCZK 859 515 325 236 388

EBITDA MCZK 7 (2) 4 (1) 0


Equity MCZK 140 130 124 116 109

2017 2016 2015 2014 2013

MCZK

0

0

350

1,000

300

600 800

200

400

10050 150 250

200100 300 500 700 900

Revenue

EBITDA

Total assets

Equity

LAMA POWER a.s.LAMA POWER a.s. (LP) is a special purpose company founded to manage part of the LAMA Group stake in PNOSE. The consolidation unit has a 75% stake in LP.

LP

Indicator Unit 2013 2014 2015 2016 2017

Revenue MCZK 0 0 0 0 0

EBITDA MCZK 0 0 0 0 0


Equity MCZK 271 281 295 314 308

2017 2016 2015 2014 2013

MCZK

0 30010050 200 250150

Total assets

EBITDA

Revenue

Equity

Revenues = Revenues from sale of finished products and services, Revenues from goods sold, Other operating revenues

EBITDA = Profit before taxation + Amortization and depreciation of intangible and tangible fixed assets − Interest income + Interest expense − Revenues from sale of intangible and tangible fixed assets + Net book value of intangible and tangible fixed assets sold


LAMA GAS & OIL s.r.o.

(CZE)

64,1 %

57,3 %

38,9 %17,6 %

100 %

79 %

100 %

100 %

14 %

100 %

100 %

100 %

100 %

100 %

100 %

100 %

100 % 100 %

100 %

100 %

Prospecting, exploration and production of crude

oil and natural gas

SPV

Commodity supplier (crude oil)

Pay-TV and telecommunication

services

Service company

OTT platform developer

Service company

Prospecting of precious metals

Co-generation heating plant

Co-generation heating plant

Central heating plant

Media Rights Trader

TV Channels Trader

Crude oil lease, blending, storage and trading

LAMA POWER a.s.(CZE)

LAMA TRADE a.s.(CZE)

PETROLAMA ENERGYCANADA INC.

(CAN)

DIGI CZ s.r.o.(CZE)

DCZ PRODUCTION s.r.o.(SK)

4NET.TV. solutions a.s.

(CZE)

MANICHERA TRADE a.s.(CZE)

SPV

PERIPHETUS a.s.(CZE)

FOLANENSYS a.s.(CZE)

TO Servisní s.r.o.(CZE)

LAMA INVESTMENTS

MONGOLIA LLC(MNG)

Teplárna Otrokovice a.s.

(CZE)

Teplárna Kyjov, a.s.

(CZE)

Energo Český Krumlov s.r.o.

(CZE)

TOLANO Management SE

(CZE)

TV PROGRAMMING

& MEDIA SE(CZE)

SPV

LIM MINING ONE LLC(MNG)

33,4 %

100 %

100 %

100 %

Prospecting of crude oil

Commodity trader and supplier

(natural gas and power)

Production, product completion, trading and services

Small factory production, trading, services

Commodity supplier (natural gas and power)

Petrolama Namur OilSands Exploration Inc.

(CAN)

LAMA energy a.s.(CZE)

MANLOMKA s.r.o.(CZE)

LAMA eco s.r.o.(CZE)

Gas International s.r.o.(CZE)

100 %

100 %

100 %

SPV

Cushing Crude Oil Terminal

WTCO INVESTMENT s.r.o.(CZE)

WILDLAMAS LLC(USA)

HOLDING STRUCTURE AS AT 31 DECEMBER 2017II.

LAMA ENERGY GROUP a.s. (CZE)


INDEPENDENT AUDITOR’S REPORTIII.


LAMA ENERGY GROUP a.s. as at 31 December 2017 Czech Statutory Financial Statement Forms (in thousands of Czech crowns) CONSOLIDATED BALANCE SHEET

Current year Prior year 2016

Gross Allowances Net Net

TOTAL ASSETS 10,423,443 (2,206,015) 8,217,428 8,861,855

A. STOCK SUBSCRIPTION RECEIVABLE

B. FIXED ASSETS 6,763,699 (2,103,892) 4,659,807 5,316,863

B. I. Intangible fixed assets 1,374,895 (328,994) 1,045,901 1,277,091

B. I. 1. Research and development

2. Valuable rights 500,669 (297,352) 203,317 368,735

1. Software 44,911 (32,483) 12,428 16,386

2. Other valuable rights 455,758 (264,869) 190,889 352,349

3. Goodwill

4. Other intangible fixed assets 49,067 (31,642) 17,425 7,385

5. Advances granted for intangible fixed assets and intangible fixed assets in progress

825,159 825,159 900,971

1. Advances granted for intangible fixed assets 400 400

2. Intangible fixed assets in progress 824,759 824,759 900,971

B. II. Tangible fixed assets 3,401,044 (1,079,310) 2,321,734 2,487,188

B. II. 1. Land and structures 1,403,021 (241,305) 1,161,716 1,166,278

1. Land 168,301 168,301 168,301

2. Structures 1,234,720 (241,305) 993,415 997,977

2. Movable assets and sets of movable assets 1,824,718 (836,760) 987,958 1,218,287

3. Gain or loss on revaluation of acquired property

4. Other tangible fixed assets 166 (52) 114 124

1. Perennial crops

2. Livestock

3. Miscellaneous tangible fixed assets 166 (52) 114 124

5. Advances granted for tangible fixed assets and tangible fixed assets in progress

173,139 (1,193) 171,946 102,499

1. Advances granted for tangible fixed assets 4,454 4,454 5,135

2. Tangible fixed assets in progress 168,685 (1,193) 167,492 97,364

B. III. Longterm investments 11,145 (5,000) 6,145 155,515

B. III. 1. Interests – controlled or controlling entity

2. Loans and borrowings – controlled or controlling entity

3. Interests – significant influence 5,858 5,858 5,858

4. Loans and borrowings - significant influence

5. Other long-term securities and interests 5,000 (5,000)

6. Loans and borrowings - other

7. Other long-term investments 287 287 149,657

1. Miscellaneous long-term investments 287 287 149,657

2. Advances granted for long-term investments

B. IV. Active/Passive consolidation difference (Goodwill/Badwill)

1,976,615 (690,588) 1,286,027 1,397,069

B. V. Investments accounted for under the equity method 0 0 0 0

LAMA ENERGY GROUP a.s. as at 31 December 2017 Czech Statutory Financial Statement Forms (in thousands of Czech crowns) CONSOLIDATED BALANCE SHEET


Gross Allowances Net Net

C. CURRENT ASSETS 3,557,989 (102,123) 3,455,866 3,460,739

C. I. Inventories 393,676 (4,816) 388,860 140,009

C. I. 1. Materials 116,232 (4,816) 111,416 110,178

2. Work in progress and semi-finished production 2,302 2,302

3. Finished products and goods 273,076 273,076 28,113

1. Finished products 429 429 2,591

2. Goods 272,647 272,647 25,522

4. Livestock

5. Advances granted for inventories 2,066 2,066 1,718

C. II. Receivables 1,968,253 (97,307) 1,870,946 1,992,402

C. II. 1. Long-term receivables 130,090 130,090 190,187

1. Trade receivables 12,647 12,647 104,123

2. Receivables – controlled or controlling entity

3. Receivables – significant influence

4. Deferred tax asset 114,211 114,211 82,183

5. Other receivables 3,232 3,232 3,881

5.1. Receivables from partners

5.2. Long-term advances granted 2,535 2,535 2,775

5.3. Unbilled revenue

5.4. Miscellaneous receivables 697 697 1,106

C. II. 2. Short-term receivables 1,838,163 (97,307) 1,740,856 1,802,215

1. Trade receivables 835,278 (93,365) 741,913 701,734

2. Receivables – controlled or controlling entity 2,976

3. Receivables – significant influence

4. Other receivables 1,002,885 (3,942) 998,943 1,097,505

4.1. Receivables from partners 5,000 5,000 175,952

4.2. Social security and health insurance

4.3. Due from government – tax receivables 51,066 51,066 24,928

4.4. Short-term advances granted 267,576 267,576 250,937

4.5. Unbilled revenue 635,937 635,937 628,285

4.6. Miscellaneous receivables 43,306 (3,942) 39,364 17,403

C. III. Shortterm financial assets 170,420 170,420 209,049

1. Interests – controlled or controlling entity

2. Other short-term financial assets 170,420 170,420 209,049

C. IV. Cash 1,025,640 1,025,640 1,119,279

1. Cash in hand 2,277 2,277 2,563

2. Cash at bank 1,023,363 1,023,363 1,116,716

D. I. Prepaid expenses and accrued income 101,755 101,755 84,253

D. I. 1. Prepaid expenses 81,229 81,229 82,674

2. Prepaid expenses (specific-purpose expenses)

3. Accrued income 20,526 20,526 1,579

LAMA ENERGY GROUP CONSOLIDATED FINANCIAL STATEMENTSIV.


LAMA ENERGY GROUP a.s. as at 31 December 2017 Czech Statutory Financial Statement Forms (in thousands of Czech crowns)CONSOLIDATED BALANCE SHEET


TOTAL EQUITY & LIABILITIES 8,217,428 8,861,855

A. EQUITY 2,196,485 2,553,033

A. I. Basic capital 2,081,066 2,081,066

A. I. 1. Registered capital 2,081,066 2,081,066

2. Own ownership interests (−)

3. Changes in basic capital

A. II. Share premium and revaluation reserve 3,779 3,779

A. II. 1. Share premium 1 1

2. Capital funds 3,778 3,778

1. Other capital funds 3,778 3,778

2. Gain or loss on revaluation of assets and liabilities (±)

3. Gain or loss on revaluation upon corporate transformation (±)

4. Differences arising on corporate transformation (±)

5. Differences arising between balance sheet date and transformation date (±)

A. III. Reserves from profit 0 0

A. III. 1. Other reserves

2. Statutory and other reserves

A. IV. Profit (loss) brought forward (±) 430,798 160,853

IV. 1. Retained earnings 430,798 160,853

2. Accumulated loss (−)

3. Other profit (loss) brought forward (±)

A. V. Consolidated profit (loss) for the year (±) (128,434) 290,787

V. 1. Earnings for the accounting period – group share (128,434) 290,787

V. 2. Earnings for the accounting period – minority share 0 0

A. VI. Income / loss from equity method consolidation 0 0

A. VII. Approved decision on advances for profit distribution (−) 0 0

A. VIII. Consolidated reserve funds 0 16,481

A. IX. Exchange rate gains (losses) from foreign consolidated entities

(190,724) 67

B. + C. PROVISIONS AND LIABILITIES 5,306,298 5,525,110

B. I. Provisions 29,559 21,640

B. I. 1. Provision for pensions and similar obligations

2. Provision for corporate income tax 89

3. Provisions recognized under special legislation 7,200 6,410

4. Other provisions 22,359 15,141

LAMA ENERGY GROUP a.s. as at 31 December 2017 Czech Statutory Financial Statement Forms (in thousands of Czech crowns)CONSOLIDATED BALANCE SHEET


C. Liabilities 5,276,739 5,503,470

C. I. Long-term liabilities 2,237,948 2,024,171

1. Bonds payable 1,251,000

1. Convertible bonds 1,251,000

2. Other bonds

2. Amounts owed to credit institutions 667,966 1,363,453

3. Long-term advances received

4. Trade payables

5. Long-term notes payable

6. Liabilities – controlled or controlling entity

7. Liabilities – significant influence

8. Deferred tax liability 259,490 287,089

9. Other liabilities 59,492 373,629

1. Liabilities to partners

2. Unbilled deliveries 39,360 346,798

3. Miscellaneous liabilities 20,132 26,831

C. II. Current liabilities 3,038,791 3,479,299

1. Bonds payable

1. Convertible bonds

2. Other bonds

2. Amounts owed to credit institutions 968,086 1,246,981

3. Short-term advances received 645,648 625,576

4. Trade payables 657,630 630,047

5. Short-term notes payable

6. Liabilities – controlled or controlling entity

7. Liabilities – significant influence

8. Other liabilities 767,427 976,695

1. Liabilities to partners 80,666 82,872

2. Short-term borrowings 10,010

3. Liabilities to employees 17,627 16,979

4. Liabilities arising from social security and health insurance 9,825 10,897

5. Due to government – taxes and subsidies 82,923 192,917

6. Unbilled deliveries 538,610 597,700

7. Miscellaneous liabilities 27,766 75,330

D. I. Accruals and deferred income 85,881 80,229

D. I. 1. Accruals 44,711 31,005

2. Deferred income 41,170 49,224

E. MINORITY CAPITAL 628,764 703,483

E. I. Minority basic capital 377,348 390,638

E. II. Minority capital funds 1,656 216

E. III. Minority funds created from profit, including retained earnings

252,562 111,269

E. IV. Minority earnings from current accounting period (2,802) 201,360


LAMA ENERGY GROUP a.s. as at 31 December 2017 Czech Statutory Financial Statement Forms (in thousands of Czech crowns)CONSOLIDATED INCOME STATEMENT


I. Revenue from sale of finished products and services 4,803,867 4,582,580

II. Revenue from sale of goods 914,280 4,720,596

A. Productionrelated consumption 4,839,067 8,587,734

A.1. Cost of goods sold 885,812 4,458,346

A.2. Consumption of material and energy 2,373,960 2,577,327

A.3. Services 1,579,295 1,552,061

B. Change in inventory produced internally (±) 2,453 3,827

C. Own work capitalized (−) (207) (1,947)

D. Personnel expenses 302,320 304,788

D.1. Wages and salaries 223,724 229,072

D.2. Social security and health insurance costs and other costs 78,596 75,716

D.2.1. Social security and health insurance costs 70,102 70,571

D.2.2. Other costs 8,494 5,145

E. Value adjustments in respect of operating activities 497,836 403,951

E.1. Value adjustments in respect of intangible and tangible fixed assets

497,796 487,056

E.1.1. Value adjustments in respect of intangible and tangible fixed assets – permanent

496,119 487,056

E.1.2. Value adjustments in respect of intangible and tangible fixed assets – temporary

1,677

E.2. Value adjustments in respect of inventory 93 (87,052)

E.3. Value adjustments in respect of receivables (53) 3,947

III. Other operating income 202,453 1,536,476

III.1. Income from sale of fixed assets 7,987 297,963

III.2. Income from sale of materials 2,374 7,999

III.3. Miscellaneous operating income 192,092 1,230,514

III.4. Settling of passive consolidation difference (Negative goodwill)

F. Other operating expenses 337,124 944,499

F.1. Net book value of fixed assets sold 18,768 292,664

F.2. Net book value of materials sold 1,719 4,383

F.3. Taxes and charges relating to operations 19,556 17,491

F.4. Provisions relating to operations and prepaid expenses (specific-purpose expenses)

8,261 6,987

F.5. Miscellaneous operating expenses 157,031 499,688

F.6. Settling of active consolidation difference (Goodwill) 131,789 123,286

* Consolidated profit or loss on operating activities (±) (57,993) 596,800

IV. Income from longterm investments – interests 1,801 0

IV.1. Income from interests in subsidiaries or parents

IV.2. Other income from interests 1,801

G. Cost of interests sold 0 296

LAMA ENERGY GROUP a.s. as at 31 December 2017 Czech Statutory Financial Statement Forms (in thousands of Czech crowns)CONSOLIDATED INCOME STATEMENT


V. Income from other longterm investments 0 0

V.1. Income from other long-term investments – subsidiaries or parents

V.2. Other income from other long-term investments

H. Expenses relating to other longterm investments 0 0

VI. Interest receivable and similar income 20,770 22,369

VI.1. Interest receivable and similar income - subsidiaries or parents

VI.2. Other interest receivable and similar income 20,770 22,369

I. Value adjustments and provisions relating to financial activities

0 0

J. Interest payable and similar expenses 106,655 96,846

J.1. Interest payable and similar expenses – subsidiaries or parents 3,143 2,929

J.2. Other interest payable and similar expenses 103,512 93,917

VII. Other finance income 135,448 113,021

K. Other finance cost 123,417 65,635

* Consolidated profit or loss on financial activities (±) (72,053) (27,387)

** Consolidated profit or loss before taxation (±) (130,046) 569,413

L. Income tax 1,190 77,266

L.1. Income tax due 60,700 232,264

L.2. Income tax deferred (±) (59,510) (154,998)

** Consolidated profit or loss for the year excluding equity income (loss)

(131,236) 492,147

1 Earnings for the accounting period - group share (128,434) 290,787

2 Earnings for the accounting period - minority share (2,802) 201,360

M. Transfer of share of profit or loss to partners (±) 0 0

*** Consolidated profit or loss for the year (±) (131,236) 492,147

* Consolidated profit or loss for the year 6,078,619 10,975,042


LAMA ENERGY GROUP a.s. as at 31 December 2017 Czech Statutory Financial Statement Forms (in thousands of Czech crowns)CONSOLIDATED CASH FLOW STATEMENT

For the years ended 31 December 2017 and 2016


CASH FLOWS FROM OPERATING ACTIVITIES

Z. Consolidated profit or loss on ordinary activities before taxation (±)

(130,046) 569,413

A. 1. Adjustments to reconcile profit or loss to net cash provided by or used in operating activities

521,026 668,577

A. 1. 1. Depreciation and amortization of fixed assets, consolidation difference and write-off of receivables

632,598 610,342

A. 1. 2. Change in allowances (2,956) (83,105)

A. 1. 3. Change in provisions 7,919 7,186

A. 1. 4. Foreign exchange differences (183,330) 64,680

A. 1. 5. (Gain)/Loss on disposal of fixed assets 8,980 (5,003)

A. 1. 6. Interest expense and interest income 85,885 74,477

A. 1. 7. Other non-cash movements (e.g. revaluation at fair value to profit or loss, dividends received)

(28,070)

A * Net cash from operating activities before taxation, changes in working capital and extraordinary items

390,980 1,237,990

A. 2. Change in non-cash components of working capital (264,013) (266,728)

A. 2. 1. Change in inventory (248,944) 353,165

A. 2. 2. Change in trade receivables 51,736 (107,666)

A. 2. 3. Change in other receivables and in prepaid expenses and unbilled revenue

(51,093) (47,689)

A. 2. 4. Change in trade payables 153,613 (306,719)

A. 2. 5. Change in other payables, and in accruals and deferred income

(169,325) (157,819)

A ** Net cash from operating activities before taxation, interest paid and extraordinary items

126,967 971,262

A. 3. 1. Interest paid (106,655) (96,846)

A. 4. 1. Income Tax paid (60,817) (72,568)

A *** Net cash provided by (used in) operating activities (40,505) 801,848

LAMA ENERGY GROUP a.s. as at 31 December 2017 Czech Statutory Financial Statement Forms (in thousands of Czech crowns)CONSOLIDATED CASH FLOW STATEMENT

For the years ended 31 December 2017 and 2016


CASH FLOWS FROM INVESTING ACTIVITIES

B. 1. 1. Purchase of fixed assets incl. acquisitions (321,281) (431,638)

B. 2. 1. Proceeds from sale of fixed assets 9,788 297,963

B. 3. 1. Loans granted 173,928 (178,928)

B. 4. 1. Interest received 20,770 22,369

B. 5. 1. Dividends received

B *** Net cash provided by (used in) investing activities (116,795) (290,234)

CASH FLOWS FROM FINANCING ACTIVITIES

C. 1. Change in long-term liabilities, and long-term and short-term loans

215,934 455,802

C. 2. 1. Effect of other changes in equity on cash

C. 2. 2. Profit shares paid (136,305) (367,369)

C. 2. 3. Effect of other changes in own capital on cash (15,968)

C *** Net cash provided by (used in) financing activities 63,661 88,433

F. Net increase (decrease) in cash (93,639) 600,047

P. Cash and cash equivalents at beginning of year 1,119,279 519,232

R. Cash and cash equivalents at end of year 1,025,640 1,119,279


Pursuant to § 82 of Act No. 90/2012 Coll., the Business Corporations Act, the companies comprising the LAMA ENERGY GROUP consolidation unit, have exercised due diligence and undertaken all possible steps to identify relations between the controlling entity and the controlled entity and other entities controlled by the same controlling entity. The results are as follows:

LEGAL RELATIONS BETWEEN RELATED PARTIES:

Related parties Subject

LAMA ENERGY GROUP a.s. PETROLAMA ENERGY CANADA INC. Loan agreement

Teplárna Otrokovice a.s. Credit agreement

DIGI CZ s.r.o. Credit agreement

Petr Lamich – LAMA Revolving credit agreement Contract for the lease of commercial space

Teplárna Kyjov, a.s. Arrangement to borrow

LAMA energy a.s. Contract for the lease of commercial space

LAMA GAS & OIL s.r.o. Revolving credit agreement

DIGI Czech Republic, s.r.o. (only part of 2017)

Arrangement to borrow

LAMA POWER a.s. Revolving credit agreement

MANLOMKA s.r.o. Revolving credit agreement

LAMA eco s.r.o. Revolving credit agreement

sCENTRE Bohemia a.s. Revolving credit agreement

TOLANO Management SE Revolving credit agreementCurrency derivative hedge agreement

TV PROGRAMMING & MEDIA SE Revolving credit agreement

FOLANENSYS, a.s. Arrangement to borrow

MANICHERA TRADE, a.s. Arrangement to borrow

PERIPHETUS, a.s. Arrangement to borrow

WILDLAMAS LLC. Loan agreement

LAMA INVESTMENTS MONGOLIA LLC. Arrangement to borrow

Energo Český Krumlov s.r.o. Receivable assignment contract

LAMA GAS & OIL s.r.o. LAMA TRADE a.s. Contract for the sale of crude oil

LAMA energy a.s. Contract for the sale of natural gasContract for energy supply Contract for the lease of commercial space

Petr Lamich – LAMA Contract for the use of an information system

DIGI CZ s.r.o. Telecommunication services contract

MANLOMKA s.r.o. Contract for the provision of fuel cards

LAMA energy a.s. Petr Lamich – LAMA Contract for energy supply Contract for the lease of commercial space

Teplárna Otrokovice a.s. Contract for the sale of allowancesAdvertising contractContracts for energy supply Contract for the lease of commercial space

Teplárna Kyjov, a.s. Contract for energy supplyContract for the lease of commercial spaceContract for the sale of allowances

DIGI CZ s.r.o. Contract for energy supplyTelecommunication services contractContract for the lease of commercial spaceCustomer support and related services contract

Energo Český Krumlov s.r.o. Contract for energy supply

TO servisní s.r.o. Contract for the lease of commercial space

Related parties Subject

Gas International s.r.o. Contract for energy supplyContract to provide security for safety

standard for natural gas supply

TOLANO Management SE Contract for the lease of commercial space

TV PROGRAMMING & MEDIA SE Contract for the lease of commercial space

LAMA eco s.r.o. Contracts for energy supply Contract for work – renovation of lightingArrangement to borrow – funding of lights

MANLOMKA s.r.o. Contract for the provision of fuel cardsContract for energy supplyContract for the sale of passenger car

sCENTRE Bohemia a.s. Sale of ownership interests

Petr Lamich – LAMA LAMA TRADE a.s. Contract for the lease of commercial spaceContract for the use of an information system

DIGI CZ s.r.o. Telecommunication services contract


L a m a, spol. s r. o. Revolving credit agreement

TOLANO Management SE Contract for the use of an information system

TV PROGRAMMING & MEDIA SE Contract for the use of an information system

NEWPORT PARK ONE a.s. Arrangement to borrow

DIGI CZ s.r.o. TO servisní s.r.o. Telecommunication services contract

Teplárna Otrokovice a.s. Telecommunication services contract

Teplárna Kyjov, a.s. Telecommunication services contract

Energo Český Krumlov s.r.o. Telecommunication services contract

MANLOMKA s.r.o. Contract for the provision of fuel cardsTelecommunication services contract

TOLANO Management SE License agreements – the use of sport rights

TV PROGRAMMING & MEDIA SE License agreements – other

LAMA eco s.r.o. Telecommunication services contractContract for advertising

DCZ PRODUCTION s.r.o. Credit agreement

Gas International s.r.o. Contract for the lease of passenger carTelecommunication services contract

Teplárna Otrokovice a.s. TO servisní s.r.o. Purchase contract for the supply of brown coalPurchase contract for the supply of coalContract for the lease of non-residential premisesContract for the provision of services Contract for the lease and sublease

of passenger carContract for the provision of

investment-related servicesContract for workLoan agreement

Teplárna Kyjov, a.s. Contracts for the provision of supporting and other services

LAMA eco s.r.o. Contract for work and purchase agreement – renovation of lighting

MANLOMKA s.r.o. Contract for the provision of fuel cardsPassenger car purchase agreement

PETROLAMA ENERGY CANADA INC. Eivi Energy LLC. Loan agreement

GN Assets S.A. Loan agreement

Navitas Energy Group Ltd. Loan agreement

Teplárna Kyjov, a.s. TO servisní s.r.o. Contract for the provision of services


LAMA eco s.r.o. MANLOMKA s.r.o. Contracts for the supply of goods and servicesArrangement to borrow

RELATED PARTIES REPORTV.


RELATED-PARTY TRANSACTIONS IN TCZK:

Revenue/expense, sale/purchase

Related parties 2017 Transaction description

LAMA ENERGY GROUP a.s. PETROLAMA ENERGY CANADA INC. 7,486 Loan interest

LAMA energy a.s. 484 Recharge of acquisition costs

Teplárna Otrokovice a.s. 36,817 Loan interest

TOLANO Management SE 2,81915,003

Interest on debtRevaluation of foreign exchange derivatives

TV PROGRAMMING & MEDIA SE 353 Interest on debt

DIGI CZ s.r.o. 17,970 Interest on borrowings

Teplárna Kyjov, a.s. 3,832 Interest on borrowings

MANLOMKA s.r.o. 131 Interest on debt

LAMA eco s.r.o. 279 Interest on debt

WILDLAMAS LLC 3 Loan interest

sCENTRE Bohemia a.s. 99 Loan interest

LAMA INVESTMENTS MONGOLIA LLC.

24 Interest on debt

LAMA GAS & OIL s.r.o. LAMA TRADE a.s. 42,785 Sale of extracted crude oil

LAMA energy a.s. 150,331 Sale of extracted natural gas

LAMA ENERGY GROUP a.s. 10,192 Interest on revolving debt

LAMA energy a.s. Petr Lamich – LAMA 54829

Energy supplyOther services

LAMA ENERGY GROUP a.s. 2,04073

Rent for commercial spaceRecharge of legal services

LAMA GAS & OIL s.r.o. 8531,020

510

Energy supply Rent for commercial spaceOther servicesEntertainment costs

PETROLAMA ENERGY CANADA INC. 367 Recharge of legal services, travel costs

PETROLAMA NAMUR OIL SANDS EXPLORATION INC.

2,271 Recharge of legal services, travel costs

WILDLAMAS LLC. 5,426 Recharge of legal services, travel costs

GAS International s.r.o. 57,656127

Energy and service supplyRecharge of operating costs

Teplárna Otrokovice a.s. 278,7091,020

Supply of energy and servicesRent for commercial space

Teplárna Kyjov, a.s. 7,129252

Energy supplyRent for commercial space and other services

TO servisní s.r.o. 108 Rent for commercial space

Energo Český Krumlov s.r.o. 29,900 Supply of energy and services

DIGI Czech Republic, s.r.o.(only part of 2017)

5818

Recharge of other costsRent for commercial space

DIGI CZ s.r.o. 1,080541517

394220

Rent for commercial spaceRent for commercial spaceSale of materialCompensation of wage costsRecharge of acquisition costsRecharge of legal costs

MANLOMKA s.r.o. 157 Energy supply



LAMA eco s.r.o. 235,278

27219

Energy supply – own consumptionEnergy supply – trading Other servicesInterest on debt

TOLANO Management SE 108113

Rent for commercial spaceRecharge of other services

TV PROGRAMMING & MEDIA SE 108 Rent for commercial space

Petr Lamich – LAMA LAMA energy a.s. 117 Rent and other services

LAMA GAS & OIL s.r.o. 25 Information system services

LAMA ENERGY GROUP a.s. 161,6443,143

Rent and servicesRecharge of software costs Interest on borrowings

LAMA TRADE a.s. 8 Rent and services

DIGI CZ s.r.o. 6 Rent and services

MANLOMKA s.r.o. 90 Sale of passenger car

NEWPORT PARK ONE a.s. 15457

Other services Recharge of building works

Lama, s.r.o. 2339

Interest on revolving creditRent and services

TOLANO Management SE 7 Rent and services

TV PROGRAMMING & MEDIA SE 9 Rent and services

Teplárna Otrokovice a.s. LAMA energy a.s. 162,115 Electricity supply

Teplárna Kyjov, a.s. 96 Other services

TO servisní s.r.o. 1,035847

Rent, servicesInvestment-related services

Energo Český Krumlov s.r.o. 22 Other services

Teplárna Kyjov, a.s. LAMA ENERGY GROUP a.s. 1,200 Interest on debt

Teplárna Otrokovice a.s. 20,666 Supporting services

LAMA energy a.s. 471 Sale of allowances

Energo Český Krumlov s.r.o. 1 Services

TO servisní s.r.o. Teplárna Otrokovice a.s. 6,888257,912

Investment-related servicesSupply of brown and black coal

DIGI CZ s.r.o. LAMA energy a.s. 1,966349

Sale of telecommunication servicesSale of passenger car

LAMA ENERGY GROUP a.s. 108 Loan interest

LAMA GAS & OIL s.r.o. 68 Sale of telecommunication services

Petr Lamich - LAMA 111 Sale of telecommunication services

TV PROGRAMMING & MEDIA SE 16950

Marketing servicesRecharge of services

LAMA eco s.r.o. 61 Sale of telecommunication services

TOLANO Management SE 63 Recharge of legal services

Teplárna Kyjov, a.s. 82 Sale of telecommunication services

Teplárna Otrokovice a.s. 443 Sale of telecommunication services

TO servisní s.r.o. 31 Sale of telecommunication services

MANLOMKA s.r.o. 47 Sale of telecommunication services

Energo Český Krumlov s.r.o. 55 Sale of telecommunication services

Gas International s.r.o. 21 Sale of telecommunication services

DIGI Czech Republic, s.r.o. (only part of 2017)

349 Sale of services

DCZ Production s.r.o. 13 Interest on debt




MANLOMKA s.r.o. LAMA GAS & OIL s.r.o. 506 Fuel payment cards

LAMA energy a.s. 1,100198

Fuel payment cardsOther services

Teplárna Otrokovice a.s. 1,356587

Fuel payment cards Investments


124

Supplies of replacement goodsOther servicesInterest on borrowings

Energo Český Krumlov s.r.o. 163 Fuel payment cards

DIGI CZ s.r.o. 3,076 Fuel payment cards

Gas International s.r.o. 71 Fuel payment cards

Petr Lamich – LAMA 552 Fuel payment cards

LAMA eco s.r.o. LAMA energy a.s. 955 Purchase of services and material

Teplárna Otrokovice a.s. 328106

InvestmentsOther services

MANLOMKA s.r.o. 1,3822

Supply of servicesSupply of goods

Teplárna Kyjov, a.s. 73 Renovation of lighting

Petr Lamich – LAMA 43333

Renovation of lightingAdvertising items

DIGI CZ s.r.o 50380157

Advertising servicesPassenger car supplyOther goods

DIGI Czech Republic, s.r.o.(pouze část roku 2017)

DIGI CZ s.r.o. 103 Interest on borrowings

TOLANO Management SE DIGI CZ s.r.o. 7,070(1,024)

Program servicesLicense value reduction

LAMA ENERGY GROUP a.s. 74 Interest on borrowings

TV PROGRAMMING & MEDIA SE

DIGI CZ s.r.o. 123,073 Program services

GAS International s.r.o. DIGI CZ s.r.o. 551213

Lease of vehiclePurchase of IT technologyRecharge of services

LAMA POWER a.s. LAMA ENERGY GROUP a.s. 265 Revolving credit interest

PETROLAMA ENERGY CANADA INC.

WILDLAMAS LLC. 10,645 Consulting services

Energo Český Krumlov s.r.o. Teplárna Otrokovice a.s. 7 Other services

Teplárna Kyjov, a.s. 14 Other services

NEWPORT PARK ONE a.s. Petr Lamich – LAMA 377 Loan interest

sCENTRE Bohemia a.s. LAMA energy a.s. 6,324 Acquisition of DFM

Receivables/payables

Related parties 31 December 2017 Due dates/Repayment terms

LAMA ENERGY GROUP a.s. TOLANO Management SE 157,1472,8195,706

3 months after creditor’s request31 December 2018 – interest31 December 2018

DIGI CZ s.r.o. 300,00034,256

31 July 2021 – credit31 December 2018 – interest

Teplárna Kyjov, a.s. 46,5003,832

15 December 2026 – borrowing31 December 2018 – interest


3 months after creditor’s request31 December 2018 – interest

MANLOMKA s.r.o. 3,000131


TV PROGRAMMING & MEDIA SE 25,300353


WILDLAMAS LLC 2,6613


LAMA INVESTMENTS MONGOLIA LLC

2,737193


LAMA GAS & OIL s.r.o. LAMA ENERGY GROUP a.s. 400,00010,192


MANLOMKA s.r.o. 105 Fuel payment card deposit

LAMA energy a.s. 28,186 90 days from date of taxable supply

LAMA TRADE a.s. 9,860 30 days from date of taxable supply

LAMA energy a.s. LAMA GAS & OIL s.r.o. 213 30 days from date of taxable supply

LAMA ENERGY GROUP a.s. 170 14 days from date of taxable supply

Teplárna Otrokovice a.s. 15,9961,452

14 days from date of taxable supplyContingencies

Teplárna Kyjov, a.s. 237 14 days from date of taxable supply

TO servisní s.r.o. 11 14 days from date of taxable supply

DIGI CZ s.r.o. 150 14 days from date of taxable supply


334 14 days from date of taxable supply

Gas International s.r.o. 27,536 30 days from date of taxable supply


86

14 days from date of taxable supplyLong-term loan – lightsShort-term loan – lights

MANLOMKA s.r.o. 83189

Fuel payment card deposit 14 days from date of taxable supply

PETROLAMA NAMUR OIL SANDS EXPLORATION INC.

3,289 14 days from date of taxable supply

TOLANO Management SE 11 14 days from date of taxable supply

TV PROGRAMMING & MEDIA SE 11 14 days from date of taxable supply

Energo Český Krumlov s.r.o. 4,975 14 days from date of taxable supply

WILDLAMAS LLC. 5,426 14 days from date of taxable supply




DIGI CZ s.r.o. MANLOMKA s.r.o. 330 Fuel payment card deposit

LAMA GAS & OIL s.r.o. 8 14 days from date of taxable supply

Petr Lamich – LAMA 2 14 days from date of taxable supply

Teplárna Otrokovice a.s. 39 Contingencies

TO servisní s.r.o. 3 Contingencies

Teplárna Kyjov, a.s. 8 Contingencies

Gas International s.r.o. 3 14 days from date of taxable supply

LAMA energy a.s. 21821

14 days from date of taxable supply31 December 2018 – advance

payment for energy


Energo Český Krumlov s.r.o. 5 14 days from date of taxable supply

DCZ Production s.r.o. 194 31 December 2020

TV PROGRAMMING & MEDIA SE

DIGI CZ s.r.o. 58,532 30 days from date of taxable supply

TOLANO Management SE DIGI CZ s.r.o. 1,328341,459

30 days from date of taxable supplyProgressively until 2021

LAMA ENERGY GROUP a.s. 74 31 December 2018 - interest

GAS International s.r.o. LAMA energy a.s. 30,000 31 December 2018 – advance payment for energy

MANLOMKA s.r.o. 36 Fuel card deposit

LAMA POWER a.s. LAMA ENERGY GROUP a.s. 5,721265

3 months from creditor request31 December 2018 – interest

NEWPORT PARK ONE a.s. Petr Lamich – LAMA 3,177 3 months from creditor request

Energo Český Krumlov s.r.o. LAMA ENERGY GROUP a.s. 1,298 15 December 2018 – consideration for assigned receivable

FOLANENSYS, a.s. LAMA ENERGY GROUP a.s. 2,000 3 months from creditor request

MANICHERA TRADE, a.s. LAMA ENERGY GROUP a.s. 2,000 3 months from creditor request

PERIPHETUS, a.s. LAMA ENERGY GROUP a.s. 2,000 3 months from creditor request


WILDLAMAS LLC. 10,645 31 January 2018

Pursuant to the provisions of § 71 and 72 of Act No. 90/2012 Coll., the Business Corporations Act, the controlled entities incurred no damage as a result of the execution of the foregoing contracts and agreements, other legal acts, other measures and rendered performance or received consideration. For this reason, the Report includes no manner or period of settlement of damage.



Petr Lamich – LAMA LAMA GAS & OIL s.r.o. 30 14 days from date of taxable supply

LAMA energy a.s. 136 14 days from date of taxable supply

LAMA ENERGY GROUP a.s. 1,66060,000

3,143

14 days from date of taxable supply 3 months from creditor request31 December 2018 – interest

LAMA TRADE a.s. 9 14 days from date of taxable supply

TOLANO Management SE 8 14 days from date of taxable supply


MANLOMKA s.r.o. 90 14 days from date of taxable supply

NEWPORT PARK ONE a.s. 553 14 days from date of taxable supply

Lama s.r.o. 8385,580

31 December 201830 days from creditor request

Teplárna Otrokovice a.s. LAMA energy a.s. 13,861774

15,000


payment for energy31 December 2018 – advance

payment for allowances

TO servisní s.r.o. 18916,509

3


payment for tangible fixed assetsContingencies

MANLOMKA s.r.o. 240 Fuel payment card deposit



TO servisní s.r.o. Teplárna Otrokovice a.s. 32,989 14 days from date of taxable supply

MANLOMKA s.r.o. LAMA energy a.s. 8595

14 days from date of taxable supply31 December 2018 advance

payment for energy

Teplárna Otrokovice a.s. 158 14 days from date of taxable supply

LAMA eco s.r.o. 3,57912464

3 months from creditor request31 December 2018 – interest14 days from date of taxable supply

LAMA GAS & OIL s.r.o. 44 14 days from date of taxable supply




Gas International s.r.o. 12 14 days from date of taxable supply

Petr Lamich – LAMA 55 14 days from date of taxable supply

LAMA eco s.r.o. LAMA energy a.s. 4349


payment for energy


Teplárna Kyjov, a.s. LAMA ENERGY GROUP a.s. 40,0001,200

10 March 2019 – borrowing31 December 2018 – interest

Teplárna Otrokovice a.s. 2,125 14 days from date of taxable supply


The Group was not involved in any research and development activities in the current period.

The Group companies neither held or acquired any own interests.

The Group has been in compliance with any and all legal requirements governing employment relations and environmental protection.

The Group companies have no foreign branches or other parts of the business abroad, except for the foreign branch in the Slovak Republic; the branch is registered with the District Court in Bratislava, Section Po, File 1902/B, under the name LAMA energy a.s. – organizačná zložka, business registration number (IČ) 458 90 935, and its registered office is located at Šulekova 2, Bratislava 811 06.

No other information is required under special legislation.

OTHER INFORMATION FOR DISCLOSUREVI.

Gudrichova 763 • 747 41 • Hradec nad Moravicí www.lamagroup.czNa Florenci 2116/15, Nové Město, 110 00 Praha 1 • Czech Republic www.lamagroup.cz

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