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Statement by Irina Maligina, Guardian of Inheritance of Valerijs Maligins

March 7, 2018

Statement by Irina Maligina, Guardian of Inheritance of Valerijs Maligins

AS Olainfarm has received the following statement of Irina Maligina, guardian of inheritance of Valerijs Maligins:

Protection of interests of family is of utmost importance now  

It is very unfortunate that during the last several weeks the name of my father, Valerijs Maligins, was displayed publicly in a negative context.  He surely would not like to see our family in a situation where private good is valued higher that interests of the family.  This exactly is a reason why I do not want to participate in destruction generated by some interested parties. It is important now to separate what is important from what is not, and what is true from what are false speculations.

Since I was appointed by the Custody court to be the guardian of inheritance, my main task is to ensure that the inheritance is managed and its value preserved until it is transferred to heirs. I do care for preservation and increase of value of AS Olainfarm and other companies developed by my father.  This is what he would have desired and that is what is in the best interests of all parties involved. Therefore my actions are targeted in this direction.

Recently published Annual report of AS Olainfarm shows that the company has set the new sales record of 122 million euros, while maintaining the last year’s profit of 11.63 million.  It has been a good year for the company, despite some unfavourable events, like fluctuations of Russian rouble at the beginning of the year.

Board of AS Olainfarm proposed a dividend of three million euros or 0.21 euros per share in 2018, if audited reports have no material deviations from unaudited ones. Being a potential shareholder of the company I understand the importance of balancing dividend payments with investments in new products or companies. Once again, I want to emphasize that further increase in value of Olainfarm group, as started by my father, is my top priority.  I am ambitious about medium term development of the company – I will seriously consider any reasonable growth opportunities, including investments in new products and new companies. It is a great achievement of my father and his team, that Olainfarm has been put on the map of the major investors of the region. And it surely has to stay there.

Because of the great effort taken by Valerijs Maligins, from many perspectives, not least financial performance and governance, Olainfarm clearly is among leaders of Latvian business. It is a company with high corporate governance and transparency standards.  Transparent performance is one of the key pillars on which the future value building of the company should be based.

As there are several third party speculations in the media, let me once again emphasize that I do not plan to sell shares of Olainfarm, and neither do I support the sale of any of its daughter companies.  I do care about the future of Olainfarm.  I fully realize that Olainfarm group has almost 3000 employees and about 1000 shareholders, and this puts a lot of responsibility about decisions that I will have to make. My approach as a guardian of inheritance will be a pragmatic one and I will do my best possible in the best interests of heirs of Valerijs Maligins.

Information prepared by:         Salvis Lapins         JSC Olainfarm         Member of the Management Board         Rupnicu iela 5, Olaine, Latvia, LV 2114         Phone: +371 6 7013 717         Fax: +371 6 7013 777         E-mail: Salvis.Lapins@olainfarm.lv