BCC Paper No. 38

Banking & Financial Services

Autumn 2011 Algirdas Bogdevičius

Interview with Arminta Saladžienė

Derek Moore

Working Capital Management: Effective and Successful

Insight to the Lithuanian securities market

„This Place is a Revelation“

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issue No. 38 This BCC Paper issue is kindly sponsored by

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Lithuania’s economy in 2012: challenges and expectations 2011 has been a decent year for Lithuanian growth. Many are somewhat nervous that 2012 will not bring such good results. Violeta Klyvienė, Danske Bank Senior Baltic Analyst has dusted off her crystal ball and very kindly agreed to answer a few questions on what might be for the coming year.

With chopper water foreseen internationally what is the predicted forecast for Lithuanian economy going into 2012 after an impressive thus far 2011?

Growth will slow in 2012 in the Lithuania. This trend will be mainly determined by the base effect and slowing external demand. Domestic demand growth will be supported by the relatively favorable fiscal policy stance. So far we are not changing our forecasts and expect the economy to expand to up to 4.9% in average in 2012. However, disappointing macroeconomic numbers around the world show that the risk of slowing global economic growth remain

Violeta Klyvienė, Danske Bank Senior Baltic Analyst

The British Chamber would like to extend our welcome to the new British Ambassador David Hunt. By the time this publication goes to print the Ambassador will have already conducted a number of events with the chamber. But who is he?

My name is David Hunt and I am delighted to be the new British Ambassador to Vilnius. I arrived at the end of June and I am accompanied by my wife Sarah and two children (Edward aged 6, Olivia aged 5). My first impressions of Vilnius and Lithuania have been really positive. I’ve received a very warm welcome from everyone and I have been struck by how positive and dynamic the Lithuanian people are. I have also already been converted into a basketball fan!

I do not have a classic diplomatic service background. After graduating from University, I started my career in the private sector. I’ve worked for Marks and Spencer Plc, ASDA Superstores and as a National Account Manager (sales) for Mars Confectionery. I then took advantage of an opportunity to move into the public sector and have now been in the Diplomatic Service for nearly 10 years. During this time I have enjoyed working on a mix of bilateral and security policy issues. For example, working at the Foreign and Commonwealth

The Lithuanian population has now declined below three million is this Lithuania's toughest problem in building the economy?

And should there be further cuts in public administration/municipalities etc to reflect the decline?

Population decline has been driven by both relatively negative demographic trends, as well as emigration. In the short term, emigration is not particularly harmful. It helps to solve the high continued on page 3 >

Welcoming the New British Ambassador David Hunt

Who am I?

elevated. Thus the risk of a more pronounced slowdown in the coming quarters is Lithuania is visible as well.

Office in London, I have been Head of the US desk, Sanctions policy unit and during the last three years, Deputy Head of Conflict Department. Because of my varied background I have only had one overseas posting to date, as Deputy Head of Mission/Consul General at the British Embassy in Zagreb, Croatia.

What can I do for you?

As the new British Ambassador, supporting British business is my top priority and I’m really looking forward to getting stuck in. The London Olympics in 2012 also offers a great opportunity to promote British companies as well as the United Kingdom as a whole. I’m very fortunate that I will be working alongside an outstanding UK Trade and Investment Team (UKTI) in the Embassy. I am sure many of you will already know Ringaile, Laura and Ieva but if you have not yet made contact, I would encourage you to get in touch.

The UKTI team supports both new companies entering the market as well as companies who are already established in Lithuania. For new companies they carry out market research and indentify continued on page 3>

New financing trends in the Lithuanian market

subsidies or tax breaks. Great Britain is often seen as the pioneer and best practice leader in PPP.

Viktorija Trimbel, Chairwoman of the Board & Managing Partner at Quantum Capital We would like to highlight two recent trends in the Lithuanian financial markets that open up new opportunities to finance large projects and fresh ideas including potential for further cooperation between Lithuanian and British companies. In this article we will summarise developments in the field of private-public partnerships (PPP) and financing opportunities for start-up companies.

While these are not novelties by themselves, we are witnessing increased efforts to promote new financing instruments and structures, success stories and dissemination of the best practices.

Private – Public Partnerships (PPP) Public–private partnership (PPP) essentially is a long-term contract between a public institution and a private company, according to which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project, and is compensated either by the users of the service or payments by the public partner or a mix thereof.

Sometimes, the public partner can contribute inkind by transferring some assets, grants, revenue

Interest in PPP projects has significantly increased in the recent years of economic slowdown and credit crunch, in particular as projects financed via PPP do not increase the debt levels of public partners, that often have insufficient funding and aim to stretch debt ceilings. The European Investment Bank (EIB), the European Commission, and European Union member and candidate countries have established a European PPP Expertise Centre (EPEC, www.eib.org/epec/) aimed at strengthening the organizational capacity of the public sector to engage in Public Private Partnership (PPP) transactions, share experience, expertise, analysis and best practice relating to PPP transactions. The current Lithuanian Government has put a lot of emphasis on PPP promotion in Lithuania by establishing a special task group (commission), comprising of high ranking officials and private sector representatives, as well as appointing the Central Project Management Agency to collect and disseminate best practices, including launching a dedicated webpage www.ppplietuva.lt.

The PPP concept is not completely new in Lithuania, however, most of the partnerships between the public and private sectors have been at least a partial concession. As of January 1, 2011, there were 41 contracts signed, including 40 concession agreements. continued on page 3 >

BCC paper Autumn 2011

BCC paper Autumn 2011

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Banking & Financial Services

Members’ Discount Scheme Updates

Living lessons in macro-economics

Chris Butler, Chairman of the BCC Lithuania

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As the 2011/2012 season at the British Chamber of Commerce begins, Lithuania and the rest of the world are wondering whether we are heading back into economic recession. Not only is this extremely worrying for the all of us in this market, but also it seems almost unfair given how hard Lithuania was hit 3 years ago and how well the economy has recovered during the last year or so.

I am reasonably convinced that the policies chosen by the Lithuanian government mean that the country is in a better position to withstand a renewed recession than it would have been had different choices been made and to illustrate this a comparison with recent economic events in neighbouring Belarus is a useful exercise. Many of you will be aware that Belarus is experiencing a crisis of its own at the start of 2011, but what is interesting is that the causes of this recession are largely the policy choices made by Belarus at the time of the initial credit crunch.

As we know only too well, the Lithuanian economic and budgetary crisis was directly triggered by the global credit crunch that occurred after the collapse of Leman Brothers in September 2008. Suddenly the supply of credit to the market dried up, industrial demand fell throughout the western world and consumer confidence (and hence spending) collapsed. Faced with a sharp reduction in budget revenues, Lithuania chose to retain its currency peg with the Euro whilst sharply reducing state expenditures and increasing taxes.

Although this then had a further knock on effect of reducing disposable incomes and consumer spending, it did at least mean that a devaluation was avoided and the Lithuanian government was able to continue to borrow on the international markets, albeit at increased interest rates.

Belarus chose a completely different response.

When the credit crunch hit, the Belarusian state continued to print and spend local currency whilst trying to maintain a fixed currency peg.

This ensured that her economy continued to grow in 2009 and was essentially stable in 2010 whilst most of the rest of Europe was stagnant or contracting, but it required vast amounts of foreign currency reserves in order to achieve. The state was “betting” on the idea that when the world economic recovery started they would be able to take advantage of that growth and trade their way out of the problem.

As we can see now, this “bet” has not been successful due to a combination of slow global recovery, reduced Russian energy subsidies and pre-election increases in salaries and benefits at the end of 2010. This additional expenditure was too much to bear and foreign currency reserves essentially ran out. In the end Belarus was forced not only to devalue its currency (already by 50% with potentially more to come) in order to stimulate exports, it has also had to borrow huge amounts of money just to meet its current budgetary obligations. Imports have become much more expensive, many goods have disappeared from the shelves, people’s savings have been decimated and large scale privatization will be required as a condition of the lenders (mainly Russia). It is far from clear where it will all end.

Perhaps a comparison with Belarus is not entirely fair; Lithuania has obviously chosen a completely different path politically as well as economically and membership of the EU has helped to cushion the impact of the recession on Lithuanian budgetary income. Nevertheless, I think sometimes we should give credit where it is due and in my view we have reached as good a position in the recovery as we can have dared to hope for. This is partly due to the sound decisions that were taken three years ago.

As for the future, we have to hope that wise councils will prevail in the US and the EU in terms of dealing with the mountain of debt that has been built up and in taking measures to stimulate renewed economic growth. Lithuania on her own cannot do much except continue keep her own budget in order – something that will be challenging in an election year - and try to influence others to do the same.

BCC paper is a free of charge newspaper of the British Chamber of Commerce in Lithuania, published 4 times a year. It covers a variety of subjects related to the UK – Lithuania business, provides members news, introduces to new BCC members and provides a review of events organized by the Chamber.

The BCC paper is distributed at Vilnius International Airport, Kaunas Airport, main hotels in Vilnius, Kaunas and Klaipeda, travel agencies, restaurants, information and business centres, all BCC members, International Chambers in Lithuania, British companies interested in entering the Lithuanian market, the Lithuanian Government and trade organisations. Copies are also sent to the Lithuanian Embassy in London, UK Trade and Investment (the UK Government organisation which supports UK companies trading Internationally), British Chambers in the UK and Europe.

Total print run: 5000 copies, Next publication date: December 2011 BCC paper team: Editor in Chief – Chris Butler Editor – Alistair Day-Stirrat – Alistair.Day-Stirrat@odontika.com Publisher – Geoffrey Cohn – Geoffcohn4747@msn.com Members section and advertising – Sandra Kundrotė, e-mail: Sandra@bccl.lt , tel. +370 5 2690062 Proofreading – Shaun Harvey

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For further information or to book your ad space, please contact the chamber: Tel. +370 (5) 269 00 62/84, e-mail: Sandra@bccl.lt If you would like to become a member of one of the most active business organisations in Lithuania, please contact the BCC office and tap into the BCC community NOW! Contact person: Mrs Toma Vevelstad, Membership Services Manager, email: bccl@bccl. lt tel. +370 5 269 0084

Lithuania’s economy in 2012: challenges and expectations < continued from page 1

unemployment problem, reduces pressure on the budget; emigrants' remittances promote recovery of private consumptions. But, in the long term, it will mean a higher debt and tax burden and less sustainable pension and welfare systems.

However, Lithuania as a lower-income economies, due to objective reasons, is bound to the emigration process. To stop this process is not very easy, hence the need to reform our public sectors in order to reduce the negative consequences to our economy (the same is true of other demographic issues). I do not think that the biggest problem in this context is public administration costs. The largest public-sector spending is on areas such as social security, education, health care.

Hospitals, schools, network optimization, even apparently declining population is still very slow

process. The negative effects of the demographic challenge is not taken into account in the new social security model.

Encouraging Lithuanians to return home and create businesses is often discussed as something much needed, would you agree and what would you be saying to the political class to see this as a reality?

Many empirical studies that look at the immigration issue agreed that the propensity to migrate is correlated with not only the economic indicators as income per capita or the unemployment rate but also others, such as a feeling of security, the overall satisfaction with quality of life. Thus, less bureaucracy, greater

New financing trends in the Lithuanian market < continued from page 1 Chart: Distribution of PPP projects by sector

Source: Ministry of Finance, Quantum Capital

Moreover, in order to facilitate the successful development of infrastructure and implementation of PPP projects, the Ministry of Economy has identified and launched 6 important pilot PPP projects in social housing, education, the health sector, road transport and the justice system, as well as prepared methodologies for the development of PPP feasibility studies, payment mechanisms, procurement process as well as having taken steps in providing training programmes for public sector officials.

Recently, our team along with a group of consortium partners have taken part in developing 4 PPP feasibility studies including road reconstruction, road building, as well as the renovation of Vilnius city streets and street lighting. Our role was to approach potential private sector partners as well as financial institutions and to collect theirs views and input, aiming to prepare projects attractive both to the public and the private sector. While a number of approvals and political decisions have to be made before tenders will be announced, we have witnessed significant interest and see these projects being implemented. Moreover, the recently opened Balsiai secondary school, is a public-private partnership project by Vilnius City Municipality, UAB Vilniaus vystymo kompanija, UAB Merko statyba and AS E.L.L. Kinnisvara (other than concessions, as described above) shall pave the road and procedures for such projects and shall further increase investor confidence. We are confident, that as a result of extensive British experience in PPP, British companies shall also take part in the future tenders.

Risk capital and start-up financing Lithuanian capital markets have long suffered from a lack of financial instruments to finance new business ideas and companies that cannot yet offer substantial collateral for banks or positive cash flows and size for traditional equity investors. While venture capital funds have a long history of investing in the region, the primary form of available capital was acquisition or buyout financing with some expansion financing, primarily in the form of mezzanine. Moreover, the availability of cheap traditional commercial loans and aggressive lending by banks competing for market share, was a preferred option by entrepreneurs, wishing to maintain equity control.

The situation has changed significantly in recent years and funds from the European Investment bank's JEREMIE program served as a catalyst to establish a number of risk capital funds with a focus on early stage financing, from seed to start-up and the first stage, namely Verslo angelų fondas

public sector transparency and efficiency could lead some people to return.

The evaluation of several years of experience we could really be proud of their exit from the global credit crisis experience. Baltic economies relatively quickly got out from the deep the recession. In addition, all three economies have implemented restrictive fiscal policy already in 2009. Although the implemented "internal devaluation" policy potion was a painful process, but in 2011 Lithuanian economy once again began to grow rapidly, and this was influenced by strong export recovery. To meet fiscal constraints have helped to reduce the wage and price levels and thus restoring the external competitiveness Today’s situation in the so-called peripheral Europe, which poses public debt risk threat to the whole euro zone reminded that they should follow in the Baltic economies examples.

According to empirical research, there are some positive sides of migration even for donating economies. It is allow people to gain experience in more advanced markets, and this experience could be adapted for the “home land” economies.

So, if we did these people have returned home - they only enhance our economic stability over the long run.

Looking to the future, what has impressed you the most with the Lithuanian economy's ability to adapt over the past 2-3 years? And, does this actually put Lithuania in a better position for stable long term growth?

Welcoming the New British Ambassador David Hunt < continued from page 1

1 (www.mesinvest.lt), Lithuanian SME fund managed by Baltcap (www.baltcap.com), Litcapital (www.litcapital.lt) and the newest fund CEE Capital is in the process of formal establishment. While Baltcap and LitCapital teams are driven by private equity professionals, Verslo angelų fund must coinvest alongside a business angel, and CEE Capital has entrepreneurs on its team, that have successfully exited innovative business themselves.

Chicken or egg? We often discuss with colleagues in the financial markets, whether there is lack of seed financing or a lack of quality ideas.

And the answer is not easy. On the one hand, different statistical surveys and opinion polls show, that 59% of the population have never considered starting a private business, 9% tried and failed, while based on the most recent survey, only 4,1% currently have succeeded and 5% are planning to start a new company within a year. On the other hand, Lithuania has bred such global players as Getjar (www.getjar.com) and Fermentas (www. fermentas.com , recently acquired by Thermo Fisher Scientific).

Therefore, in addition to risk capital, a whole ecosystem is being developed that should facilitate the successful development and launching of profitable business ideas. A number of events, such as StartupWeekend, StartupBootCamp, StartupJam, at which teams and aspiring entrepreneurs come together and seek to develop a business idea over the weekend, then pitch it to a group of potential investors, as well as other initiatives, funded by large corporations, such as Mobiliuju Aplikaciju Dirbtuveles (Mobile Apps Lab) and the largest mobile operator Omnitel, providing a platform for testing ideas, inviting like-minded team fellows, getting advice from experienced mentors or even receiving initial funding.

Quantum capital team also supports growing entrepreneurial activity in Lithuania, by offering mentorship and facilitating the development of the entrepreneurial ecosystem. We would like to highlight a recent initiative to launch the first start-up accelerator StartupHighway (www.startuphighway.com), co-founded by Indre Milukaite, Associated partner of Quantum capital. StartupHighway selects a limited number of teams from the EU and beyond to receive business infrastructure (working place, internet access) and initial funding (€2,000 for the idea and €3,000 per founder for up to 4 founders) as well as mentoring that should allow them to focus on the development and market testing of their business idea. The selected teams will start in Vilnius on September 15, 2011 and organisers expect to present a number of attractive opportunities to investors during the Investor‘s Day in 3 months time. The StartupHighway managed to attract an impressive international group of mentors, including Jon Bradford from the UK, the co-founder of Springboard and founder of The Difference Engine, highly successful British accelerators.

In summary, we enjoy and support new developments in the Lithuanian financial market, and believe, that opportunities to invest in PPP projects and innovative start-up companies will attract the attention of British companies and will contribute to the economic growth and well-being of our country.

Ambassador David Hunt with wife Sarah and kids Edward and Olivia business partners. For companies who are already in Lithuania we offer first class facilities at the Embassy and my Residence where British businesses can promote their goods and services and meet new customers. The UKTI team are experts at organising such events. Both the UKTI and the wider Embassy team can also help British business to overcome possible obstacles.

cooperation. I hope to regularly attend BCC events but as mentioned above, I would be keen to host business events too. I am also open to any creative ideas you may have about how we can support your efforts and the success of British business. For example, at the beginning of October (2011) we are going to launch new Range Rover Evoque at the Embassy.

This will be an exciting, high profile launch and I hope it will be the first of many commercial events supported by the Embassy. I look forward to seeing many of you there.

How we can support the Chamber I am delighted to accept the position of the Honorary President of the British Chamber of Commerce and I want to further improve our already close

All the best, David Hunt

Information kiosks

Contact us: BANKSERVIS UAB Ulonų g. 5, Vilnius, Lithuania www.bankservis.eu

BANKSERVIS SIA Aristida Briāna iela 9a, Rīga, Latvia www.bankservis.lv

BCC paper Autumn 2011

BCC paper Autumn 2011

4

Working Capital Management: Effective and Successful on how they are combined, and how a period of several days separates the funds received from the clients and settlement with the suppliers (whether you will pay on time, delay the payment or provide credit for debt from your own expenses).

Algirdas Bogdevičius, Senior Asset Management Specialist at Danske Bank Clever management of working capital is one of the guarantees of a successful company. Working capital is designated for the purchase of primary products, payment of salaries, covering various expenses of operations, etc. To a large extent a company’s potential for growth and increased profit depends on the effective utilization of these assets.

Even after a thorough study of the theory of working capital, one does not always succeed in its application. The market might take you by surprise. It often determines new conditions, and all there is to do for the leaders is to adapt their decisions according to those conditions. However, there are several manners tested by time and outcome, which help to find the way through the working capital labyrinth and to achieve the best results.

Working capital management requires care and attention. Make an assessment (in days) at least once in a quarter of the company’s reserves, indicators of receivable and payable amounts and of the general working capital cycle. Discuss the data on indicators with the sales, purchasing, production and financial managers. You must understand clearly what determines current tendencies. Only after having analysed your company’s situation and having compared it to one of your competitors, can you clearly formulate the goals of the company and to decide the type of working capital management you wish to achieve and the manner in which it will be done.

Make sure you document the set goals and distribute them inside the company. It will help to form the asset management culture within the company.

Pay attention to employee motivation. It often goes unnoticed that mistakes increasing the working capital cycle are hiding in the lowest chains, in the everyday bread of the employees of the pur-

chasing, sales or production subdivisions. Therefore, try to hear the voice of the employees of the lower chains as well. They rather often have ideas of other ways to optimise the company's operations. For example, an even better internal communication – faster and more accurate transfer of information – can often have a positive influence on the general working capital cycle. Award small, but enjoyable prizes for presenting ideas, and make sure that communication of the ideas is as simple as possible (maybe it is worthwhile placing an idea box in the canteen, smoking cabin or setting up an e-mail address). If you properly organise, inform and listen to the company’s employees, they will take care of the company’s assets without noticing it.

If you notice that the salespersons conclude many short-term agreements with financially weak and not exactly reliable companies, which tend to delay payment of your invoices, think about changing the motivation system. If in the calculation of the work results of the sales chain employees you consider only the number of the signed agreements with the clients and the general value, maybe it is worth considering the number of clients' invoices paid within a certain period (e.g., within one month or quarter). This type of motivation system encourages the salespersons to conclude long-term agreements with financially strong companies and to take extra care to ensure timely payment of the invoices.

Analyse not only your own indicators but also the working capital indicators of competitors. When you know how your competitors work and see the results they achieve, you will be able to plan actions, which will help you achieve “quick victories”. Pay attention to the ratio of the receivable and payable amounts.

Successful working capital management depends

Analysis of competitors’ finances and the strategic direction of the company will tell you what the turnover indicators of the reserves, receivable and payable amounts should be. It is possible that your competitive similarity is hiding in the wide range of goods, longer delays provided to clients or advance payment for primary products. Do not forget that there is one general rule applicable to the selection of optimal indicators: the turnover of the reserves and receivable amounts should be as quick as possible (lower indicators), while turnover of the payable amounts should be slower (higher indicators).

Take into account the context of the analysed indicators. Remember that the analysed indicators will reflect the situation in the past, and therefore, will not be entirely accurate. The end of the financial year can also affect the indicators. If your financial year ends in the summer, while in other companies it ends in winter, comparing them will be complicated and even incorrect. Therefore, it is recommended to carry out analysis in June-August of each year, when most of the companies will have submitted their financial reports to the State Enterprise Centre of Registers.

Use small tricks when negotiating with clients and suppliers. Always look one step ahead of yourself and your opponent. Information about turnover of the payable and receivable amounts of the clients or suppliers might come in handy. Knowing how fast your potential client settles the accounts with their other suppliers or how many days on average it takes the clients of your suppliers to provide settlement will give you an additional argument to use in negotiations. Surely, evaluation of the general financial state will help you foresee what your partner considers important – a large discount or longer extensions.

Make sure that none of the settlements are delayed. If you think that sending an invoice by regular mail will take a long time, send it first by electronic mail. Send a hard copy only after having received confirmation from the supplier’s accounting office.

This way you will save time and avoid mistakes, which are often made not only by humans, but also

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Banking & Financial Services

Banking & Financial Services

by accounting systems. You might also consider alternative ways of invoice payment: direct debit, electronic trade, etc. If you plan to cooperate with suppliers abroad, take into consideration the fact that payment transfers abroad take a while to arrive. In this case you could look for alternatives, for example, choose a bank, which has a branch in a country of interest, or make transfers through a Eurozone country. This kind of payment “journey” will cost less and it often arrives rather quickly. But always remember that you have to work according to a prepared action plan – settle with the suppliers on time in order to stimulate loyalty and trust.

Run an analysis of the countries you get most income from. By having settlement accounts in those countries you will obtain a competitive advantage – your clients will pay less for transfers within their own country, while you will receive money up to 2 days earlier.

If you do business with clients who avoid timely payments, try calling them one or two days prior to the last day of the deadline, asking about the quality of the supplied goods or services and about the possibility to pay on time. As a “soft” disciplinary measure you might include a clause from the agreement into an invoice, which establishes penalty charges for late payments expressed in percentages.

You can also establish in the agreement that the full discount will be applied only if the invoices are settled on time – if the client delays the payment of one invoice, the next one will be calculated with a smaller discount.

Continue looking for new possibilities of optimisation. One of which is consolidation with the competitors, who, do remember, are not always your enemies. When two companies together purchase a service, the service will cost less, which allows competition with other market players. Thus, maintain friendly relations with companies operating in similar fields.

Review of the asset management policy may reveal unused potential. Consider the fact that it might not be worth keeping low liquidity assets, but it is better to use express delivery services, such as aeroplanes (the transport market continuously presents new market players and new routes, therefore the concepts “too slow” and “too far” are continuously changing).

Insight to the Lithuanian securities market

Over the past two decades, the stock exchange in Vilnius has strived to address its clients’ needs by employing the latest developments and innovations, and in taking the lead in reforming the Lithuanian securities market. This process has been accelerated by integrating with one of the world’s largest exchange operators and technology suppliers across six continents, NASDAQ OMX Group. Arminta Saladžienė, President and Chairman of NASDAQ OMX Vilnius has kindly agreed to answer some questions. posed of all key stakeholders in the financial markets works in very close cooperation to further develop the Lithuanian capital market. The recent crisis has clearly shown that companies can not rely as heavily on debt as they did before, but need to have a long term approach to financing and turn to the equity market for raising capital, ensuring a healthy balance sheet. We hope to see more domestic companies coming to the market in the future as they prepare well for successful debuts.

We also expect more new financial instruments to appear next year. This year we have launched a new instrument by offering investors shares from the first open-end index fund which tracks the OMX Baltic Benchmark index that consists of the largest capitalization and most traded shares in the Baltics and we expect warrants and certificates to expand our structured products portfolio in the nearest future.

How different is NASDAQ OMX Vilnius from the stock exchanges in neighbouring countries?

NASDAQ OMX Vilnius is a local stock exchange which is at the same time a global company. Being a local bourse we consider the needs of local companies and market participants and adjust our products and services accordingly. We communicate with the issuers in the local language, can react promptly and search for the best solution in certain circumstances. While being a part of the global group NASDAQ OMX Vilnius can offer its companies a world-known brand name, one of the most efficient and scalable trading platforms in the world, the widest information dissemination networks and innovative products.

Another advantage of our stock exchange is that it uses the Euro currency for trading and the settlement of equities. Differently from exchanges that trade in local currency, trading in the Euro facilitates greater investment flows into the market and benefits investors due to minimized currency risk and smaller currency conversion costs.

Together with the stock exchanges in Tallinn and Riga, NASDAQ OMX Vilnius forms a common Baltic market offering a one-stop-shop for investors and traders. Thanks to regional integration, companies listed on the Baltic exchanges get great exposure to Nordic investors and enjoy international visibility thanks to the NASDAQ OMX brand. So in this respect our stock exchange is a natural first choice for a Lithuanian company considering going public.

What can NASDAQ OMX Vilnius offer to companies that decide to list their shares?

NASDAQ OMX Vilnius offers capital raising solutions to companies of various sizes. The exchange adjusted its market set up so that listing and trading for foreign issuers is as seamless as it is for local customers. Depending on a company’s needs, it can choose between two securities market segments: the EU-regulated main markets (NASDAQ OMX Main and Secondary Lists) and an unregulated alternative market (NASDAQ OMX First North) more targeted for growth companies. The companies in these markets are subject to different admittance requirements, which allow for the listing of joint stock companies of various sizes, industry segments, and geographic locations.

By listing on NASDAQ OMX Vilnius companies do not only get capital for expanding their business. They also enhance their visibility among the financial community, general public, and media.

The companies use our next generation technology, disseminate their news via our information system GlobeNewswire. They get included into various NASDAQ OMX Baltic indices used by fund managers to build their portfolio, get access to a broad local and foreign investor and member base. Regionally shared top notch trading and information dissemination systems are as easily accessible for international investors as they are for domestic ones. So if a company is attractive because of its size, sector, is of good reputation and is open for investors it will successfully attract capital on our stock exchange both from abroad and from the local market. The well-known NASDAQ OMX brand name will only enhance their visibility and trust among investors.

NASDAQ OMX Vilnius is an open doorway to the EU's capital markets. It especially applies to companies, which are doing or planning to do business in the Baltics or a neighbouring geographical region, that want to promote a positive image. For companies seeking to expand their range of international investors, such a listing would provide a passport to trade in other EU member states.

Can you tell us about the common Baltic securities market initiative and what benefits traders and investors can expect from it?

What information can you give about the Lithuanian Capital Market in general? Is it attractive enough for traders and what are its strengths and weaknesses?

The Lithuanian capital market structure is in place, however there is room for more development.

There is still too great a reliance on one capital source – debts, and this is not sustainable, the equity side needs to grow. This can be secured by developing both the supply and the demand side of the market.

Arminta Saladžienė, President and Chairman of NASDAQ OMX Vilnius The core idea behind NASDAQ OMX Baltic is to provide a one-stop-solution for trading, clearing and settlement in the Baltics and thereby making the region more accessible and attractive to local and international investors, as well as listed companies.

Investors get a better perception of our market offering when they can find information on one website (www.nasdaqomxbaltic.com) or use one broker that offers trading in all three markets instead of one.

Altogether, over eighty companies are listed on the Baltic market (35 of which come from Vilnius) with a market value of around EUR 6 billion. In addition, NASDAQ OMX Baltic exchanges provide trading in almost 80 bonds of different maturities, with a market cap of around EUR 2.4 billion. Recently investors were offered a new investment tool - the first open-end index fund which tracks the OMX Baltic Benchmark index which consists of a portfolio of some 30 Baltic companies.

The Baltic market still has potential for growth and according to market specialists there are companies on the market which are still undervalued. Meanwhile, the Baltic exchanges continue to work towards improving their conditions and infrastructure for the benefit of investors.

From what sectors do companies have the most potential to be admitted to the NASDAQ OMX Vilnius?

We need more liquid companies on the market and the government can support this by listing state-controlled companies and increasing free float of the listed ones. We are glad that after the reorganisation of the Lithuanian energy sector, newly formed companies were listed on our stock exchange. We hope that those companies, like the recently listed Lithuanian power generating company Lietuvos energija, will use the benefits of the capital market and issue more shares in the future.

Meanwhile, the increased free float would bring additional liquidity both for the company’s shares and the entire market.

As for IPOs the potential lies in retail, transport, real estate, forestry and other sectors. IPOs and SPOs of the state-controlled companies would not only contribute to the efficiency and transparency of those companies and help the state budget, but would also deepen the local equity market and facilitate capital raising for private companies. Our stock exchange also offers market set up of listing and trading for foreign issuers so companies from Ukraine, Belarus or other countries are welcome to our market as well.

What are the future development plans for NASDAQ OMX Vilnius in the next few years?

All three Baltic stock exchanges constantly develop the market, especially focusing on attracting new foreign investors and growing a strong domestic retail base. Last year we set up the local capital market development initiative and the group com-

On the supply side, as I mentioned before, we need more attractive investment opportunities.

The government has discussed plans to bring the state-owned companies to the stock exchange and increase the free float of those currently listed. This can also provide a significant boost to the Lithuanian capital market and positively influence the general investment climate and the country's economy.

On the demand side, we need to secure a bigger capital pool and higher liquidity. Venture capital development needs to be supported in order to build a viable chain of financing for different sizes of business and some development has recently taken place in this area.

Overall, the investment climate needs further encouragement. For all those efforts to be successful all financial market stakeholders including the government need to have a consistent approach towards bettering our investment environment. So in the long run this will benefit everyone, the country and its economy as well as local and international investors.

Queue management systems Contact us: BANKSERVIS UAB Ulonų g. 5, Vilnius, Lithuania www.bankservis.eu

BANKSERVIS SIA Aristida Briāna iela 9a, Rīga, Latvia www.bankservis.lv

BCC paper Autumn 2011

BCC paper Autumn 2011

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Banking & Financial Services

Banking & Financial Services

Company accounting in Lithuania and the UK: more differences than similarities Interview with Olga Jachimovic, owner of Eurobaltika, a leading company in the Eastern European market based in London

Could you briefly introduce your company's activities to our readers?

Eurobaltika UK Ltd is UK based company providing small and medium sized businesses with accountancy, tax and management advisory services established by Lithuanian sole owner and accountant degree acquired Olga Jachimovic. Eurobaltika is a leading company in the Eastern European market in London serving hundreds of private and corporate clients since 2006. However our clients are not only of Eastern European origin, some merging businesses with those of other nationalities chose us as reliable partners to advise and deal with their accountancy and taxation matters. Eurobaltika provide services from company incorporation, start up advisory, accountancy and book-keeping, tax strategy and management, personal income taxation affairs to company strike down.

Our British members complain that company accounting in Lithuania is quite complicated.

What would be your comments on that?

In the past few years, the Lithuanian authorities realised that they have to make changes to how small and medium companies are accountable to

government. Measures were taken to reduce the amount of paperwork and bureaucracy to create a simpler degree of accountability and an online filling system was introduced. However, there is still lots of room for improvement. In the UK small and medium companies have to fill in simple (non audited) accounts and only pay income (corporation) tax once a year, with a period of 9 months available for completion and submission. It is also possible to pay tax by instalments. Her Majesty's Revenue & Customs (HMRC, or in Lithuania, tax inspection) provide clear information and advice to all individual and corporate tax payers, employers and VAT (PVM) registered businesses. The difference between the UK and Lithuania is that small and medium sized businesses are not required to hire an accountant for all day to day activities, all the responsibility is placed upon the directors and they can do accountancy themselves with only a small amount of training. The only requirement is that final accounts for corporate businesses have to be prepared and reported by an accountant. Often small businesses provide all their annual information at the end of the financial company period for accountants finalisation. Self-employed people (in Lithuania - private company, patent workers) can prepare and submit their annual accounts themselves or go directly to

Currency authenticity check equipment

The same, as above. A significant number of Lithuanian businesses coming to the UK do not do their research and do not understand or want to accept the local (UK) regulations and mentality. For example, the construction industry have separate taxation and reporting regulations, different activity requirements and business to business approach. It is a huge industry in the UK and Lithuanians often try to use their rules, I can tell you for sure it will not work. As in Lithuania, there is a local mentality and are local business rules. Try and keep it simple and do not try to invent the bike, there is one already. Get advice for actions before doing anything.

What are main differences between running company accounts in Lithuania and the UK?

Lithuania took a chance and introduced a 5% corporation tax for small companies (turnover up to 50 000 LTL and employees less than 10) and a main corporation tax of 15%. In the meantime corporation tax is 20% for small and medium sized companies in the UK and the main corporation tax is 26% (from April 2011). Requirements for the small and medium corporation tax pool in the UK: profit up to 300 000 GBP and less than 50 employees).

However Lithuania have other taxes which sometimes add up, also you have to pay corporation tax in advance quarterly. In my opinion Lithuania gives a lot of competitiveness and benefits in terms of percentages and incentives, however you have to get a good look at accountancy, cash flow and the system requirements, which may be costly. The UK has a more friendly, less complicated accounting system and is sometimes the cost effective choice.

So I think every company should take an individual approach and take in to consideration all aspects, not only corporation tax.

In the UK there is an easier simpler attitude toward small and medium businesses, space to brief, lots of help, government and HMRC training and information are all provided. Furthermore, no taxation is demanded in advance, VAT (PVM) is payable once every 3 months, corporation and income tax – are payable once a year with the possibility to postpone.

Everyone in human nature makes mistakes, even computers are not perfect, so HMRC offers time and the opportunity to correct mistakes, giving warning before issuing a penalty. In Lithuania there are lots of government ideas and tax and cash incentives for investors and businesses coming from abroad, so I would encourage the use of those.

As a specialist, what advice would you give to British companies entering the Lithuanian market in terms of company accounting?

Get advice on local accounting and taxation matters and government policies, contact local business organisations, do your research, find someone who understands the local mentality and get testimonials. If possible find and use an accountant/adviser in the UK who has partners in Lithuania. You will feel safer. They will be able to explain to you what the differences are and give you feedback in UK accountancy terminology. For example we have UK establishment companies who trade with/in Lithuania and our partners in Lithuania help and provide them with services on Lithuanian soil.

And vice versa, what are your recommendations to Lithuanian companies entering the UK market?

BANKSERVIS SIA Aristida Briāna iela 9a, Rīga, Latvia www.bankservis.lv

Increased access to broadband Internet service is expected to become more commonplace across Eastern Europe in the next five years, which will likely lead to significant growth in e-commerce sales and online access to bank accounts. As of 2010 only 40% of households in Eastern Europe possessed an internet-enabled computer but that figure is expected to rise to 53% in 2015, according to Euromonitor International.

In Russia officials realized the strong potential for electronic payments and opened a governmentsupported website in the spring of 2010 so that people could pay for various state and community

is not applied and an acceleration of a loan is considered, the issue whether the breach is substantial should be given due regard.

In your opinion is the UK a “corporate tax friendly” market when compared with Lithuania?

How could you help Lithuanian companies interested in setting up in the UK? We provide professional advice prior to setting up in the UK or Lithuania. This advice entails: an overview of the market and the legal requirements involved in setting up, preparing documentation and filling in the establishment of the company in 3-24h, advising on tax strategy and any future actions that are required, working in team with companies reminding them about reporting dates and liabilities and helping businesses to understand accountancy and taxation requirements, taking the hassle out of day to day accounting tasks so they can concentrate on business.

Eastern Europe’s Increased Broadband Access will Lead to More Online Banking

Michelle Evans, Research Analyst at Euromonitor International

Contact us: BANKSERVIS UAB Ulonų g. 5, Vilnius, Lithuania www.bankservis.eu

HMRC where will be assisted. Lithuanian tax inspection forms are a lot more complicated than in the UK, involving lots of codes, numbers and complicated names. In the UK HMRC tries to make it as simple as possible, of course all forms have their numbers (in small print), however they are usually only used by accountants or agents and HMRC. Another thing which is not usually understood by people from the west is how tax inspectors in Lithuania have the right to deduct anything from your account, check your account details and balances, and provide this information to third parties without your permission. You have to give some trust to your tax payers with a bit of control and advice, not scare them with taxes in advance. Then people will feel more free to do business and not scared of tax inspection.

Several issues to consider before taking a decision to accelerate the loan

fees by electronic payments. In Poland, which is expected to have the highest proportion of households with internet-enabled computers in 2015 across Eastern Europe, consumers are beginning to transition to internet payments as the preferred mode of payment. The number of active users of electronic banking in Poland grew from 8.4 million at the end of 2009 to 10 million by the end of 2011, according to the Polish Bank Association.

Banks across the region have been looking toward online banking more as the pressure of the global downturn has forced financial institutions to consider alternative payment methods with a lower cost structure. In light of the recession, consumers also began to pay more attention to the cost for such services.

Easy-to-use systems and low-cost internet operations are a priority for younger generations when selecting a bank account. A larger number of users of internet banking will also mean higher value and volume of electronic direct/ACH transactions in the coming years. The expansion of internet capabilities and availability is becoming a way to further integrate consumers into the financial mainstream.

Liutauras Baikšys, advocate, associate partner at the law firm VARUL Banks acting in Lithuania, like other banks acting in the European Union, use sophisticated agreements to secure their rights in financing transactions and to provide for smooth acceleration of loans in cases of default of the clients of the bank (debtors). Usually a possibility to restructure the financing and (or) the security arrangement should be considered first when a debtor is in default in performing its obligations under a financing agreement. An acceleration of a loan (a demand to repay a loan and an interest thereon) should be used as the last measure, which would be mostly acceptable when the breach is substantial. Taking into account the recent case law of Lithuanian courts this article discusses several important issues that have to be considered before taking a decision to accelerate a loan.

Firstly, when a debtor is in default and acceleration of a loan is under consideration usually a bank has an option to consider the possibility of restructuring of the financing and (or) security arrangement (e.g. extension of a credit term, provision of additional securities, etc.) so that due to the relevant changes the debtor has a better possibility to repay the loan and the interest thereon and (or) the security granted to the bank is improved.

According to the case law of Lithuanian courts, when a financing agreement is concluded with a consumer (i.e. a natural person, who expresses his intention to buy, buys and uses goods or services to meet his own personal, family or household needs that are outside his business or profession), in case of a dispute in court its provisions should be always ex officio assessed by the court in terms of the criteria of fairness established in Article 6.188 of the Civil Code.

In case the provisions of the agreement breach the general requirements of fairness and substantially affect the balance of the rights and obligations of the parties to the detriment of the consumer, these provisions may be held invalid ab initio. In its ruling of 15 June 2011 (civil case No. 3K-7-272/2011) the Supreme Court of Lithuania ruled invalid the provisions of a credit agreement to the extent they provided for the right of the bank to terminate the credit agreement and to demand repayment of the credit, interest and all other payments indicated in the agreement in case the consumer (the debtor) defaults in payment of at least one installment out of many installments indicated in the credit agreement.

If some provisions of a financing agreement are held invalid, the relevant provisions of the law would be applied. In the above ruling the court held that when the agreement is being terminated before the expiry of its term in accordance with the order established under the law, but not under the agreement, the rules on termination established under the law should be observed. The court stated that when the breach of the term is not a substantial breach of the agreement, the creditor may terminate the agreement in case the other party does not perform the agreement in the additional term (grace period) set by the creditor. And, most importantly, the court stipulated that the above rule should not be applied in cases the non-performed obligation amounts to only a small part of obligations of the party in breach.

Furthermore, although the issue whether the breach is substantial was touched upon in the case where the credit provided under the financing agreement concluded with the consumer was accelerated, the same issue might be important in other cases as well. For example, in financing agreements the banks use to indicate various financial criteria (e.g. debt service ratio, debt to equity ratio, etc.) that have to be observed by the debtor and to indicate the right of the bank to terminate the agreement and to accelerate the loan in case a debtor defaults in observing any of these criteria. However, it would seem doubtful if a bank could accelerate the loan in case a debtor defaults in observance of some of these financial ratios (especially, if the default is only a small amount), but keeps in line with the financing agreement in respect of paying the installments.

In such a case it could strongly be argued that the In its ruling of 23 May 2011 (civil case No. 3K-3- acceleration of the loan would contradict the basic 227/2011) the Supreme Court of Lithuania ruled that principles of justice, reasonableness and fairness the actions of a bank by which the credit repayment established in Lithuanian law. term was extended mean the stipulation of more favorable and flexible conditions to the debtor on Summarizing the above it could be stated that the repayment of the credit. The court also stated the law does not oblige the banks to accelerate that these actions of the bank do not mean the the loans in cases of default of debtors. Instead, the aggravation of credit repayment obligation of the banks usually have a possibility to restructure the debtor, which caused the nonperformance of the financing and (or) the security arrangements. If this said obligation. According to the court it does not possibility is not used, the issue whether the breach mean that by undertaking these actions the bank by the debtor is substantial should be considered had to foresee the nonperformance of the obliga- before reverting to acceleration of the loan. tion by the debtor and the occurrence of the loss thereof. The court also held that in contractual rela- This article is intended for general information purtions priority should be given to preservation and poses only and should not be regarded as legal advice; in each particular situation please consult your not to termination of the agreement. lawyer.

Secondly, when at default of a debtor the restructuring of a financing and (or) security arrangement The banks have a duty to act carefully. For example, under Item 2 of Paragraph 3 of Article 31 of the Law on Financial Institutions prior to taking a decision on the acquisition of the capital or money market instruments, lending or assumption of obligations for a client, a bank, as well as any other financial institution, has the obligation to ascertain that the client’s financial as well as economic situation and forecasts about it lead to an expectation that the client will be capable of performing his obligations.

However, it could be argued that this duty of the banks does not mean that in a situation where a bank undertakes the relevant business risk by amending the terms of the financing arrangement (e.g. by extending the credit term, etc.) the bank is at fault for the occurrence of loss in case the debtor is later unable to repay the loan.

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Bankservis, UAB

Zigmantas Šoblickas, Director BANKSERVIS, UAB was established in 1993. The company was started from scratch as a LithuanianGerman joint venture and a local partner of the global company De La Rue (DLR) International (UK), which was the first company to sell the Lithuanian Central bank high quality and throughput money processing equipment. Today we are still the partner of DLR; furthermore we have expanded our product and service range to become one of the leading companies in Lithuania dealing in the field of specialised security equipment and solutions for banks and offices. Our cash handling equipment for currency authenticity checks as well as safes are necessary for anyone working with cash on a daily basis – small and big shops, retailers, hotels, pharmacies, post offices, fuel stations, etc.

Other important products we offer include; data security solutions, information and client man-

agement systems. We offer a wide range of high security and throughput document shredders, data media erasers and crushes, office safes. Our electronic information tabloids are widely used in banks.

Our clients care a lot about offering the highest quality to their customers as well. We provide full customer queue management solutions (QMS) for banks, hospitals, clinics, municipalities, and shops.

This system of self-appointment can be managed locally or remotely, via cell phone or the internet, and saves time for both customers and the service provider. QMS' specialised software also helps the service provider to cut costs by optimising working hours, operations and human resources.

BANKSERVIS, UAB is well known internationally - we are distributor and trusted partner of famous producers in many countries of Europe, America and Asia.

For more information visit our website www.bankservis.eu.

Our contact details: BANKSERVIS, UAB Ulonu g. 5, LT 08240 Vilnius Lithuania Phone: +370 5 2124135 Fax: +370 5 2685373 E-mail: info@bankservis.lt

BCC paper Autumn 2011

BCC paper Autumn 2011

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“This Place is a Revelation”

the castle there was attractive and the possibility of a boat trip looked enticing.

9

Chronicle of BCC Events Basketball: an unusual way to link Great Britain and Lithuania! tion's second religion. The event was held in the cosy courtyard of the Fiorentino Restaurant and surprisingly also attracted quite considerable interest from the British members. Before the game started, all attending members had a nice chance to taste Italian wines from the Toscana region,

Which tourism sectors do you feel Lithuania should concentrate on in promoting herself?

The key sector is short breaks, as most of the city can be explored in just a couple of days. Clients looking for boutique hotels are also well served.

Has Vilnius, as a new destination for AITO joint annual conference met your members’ expectations? If yes, in what areas?

Absolutely! There were some members who were dubious about the place as they knew nothing about it and assumed it would be a tired, jaded, unattractive relic of soviet days. They were delighted to find that Vilnius is a vibrant city with a lively nightlife; they enjoyed the restaurants; they found it inexpensive. As one of them said – “this place is a revelation”.

Do you think Lithuania could also well attract interest from the UK as a destination for conference tourism?

Mr Derek Moore, AITO Chairman in Vilnius, June, 2011 In June 2011, the Lithuanian capital of Vilnius brought together over a hundred AITO Tour Operators and AITO Specialist Travel Agents to attend their first joint annual conference and also mark 35 years of AITO and 15 years of AITO Agents.

Lithuanian National Tourism Office in London, the member of AITO, was the initiator to present Vilnius as a destination for the conference. The city fought off competition from several other destinations for this event.

“Vilnius was chosen because it was a “lesser-known” destination but still with a relatively short flying time of around two hours”, said AITO chairman Derek Moore after destination for the conference was confirmed.

The British Chamber of Commerce in Lithuania has spoken with Mr Moore in early September to find out more about what impressions has Vilnius left and what potential has Lithuania got as a relatively new destination for tourists from the UK.

Derek, you recently spent some time in Lithuania with over 100 members of AITO. What did you find that will encourage your members most about organizing tours to Lithuania?

The city has a number of attractions: The Old Town has a wealth of history that repays a wander.

There are a number of excellent restaurants with a wide variety of cuisine. The local agencies that would handle incoming business for UK operators seem very professional; prices are low; and the destination is a short flight, and so is somewhere new to discover and perfect for a short break when UK travellers are looking to book less expensive holidays.

Did you have time to visit places outside of Vilnius, if so where and what interested you?

Personally only Trakai, as I was involved most of the time organising the conference. But I thought

This will not be easy at the moment. WE had some trouble in finding a suitable location for our business sessions. While the Contemporary Arts Centre which we used was satisfactory it does not stand up against other international conference facilities.

The hotel – forgotten the name – a few km out of town by a lake has quite good facilities but is out of town and has none of the flavour of Vilnius. I think more investment is going to be needed before many conferences will choose Vilnius.

2011 has seen an upturn in tourist numbers visiting Lithuania, why do you think that is?

Come along, we need support!

‘Cos Basketball just ain’t our sport.

Good food, great folk, beer & vino, 7 o’clock at Fiorentino!

On August 31st, those four lines were used to invite BCC Members and friends to the opening of the European Basketball Championship “ EuroBasket 2011” hosted in Lithuania. The event attracted the Lithuanian and British business community under one roof to watch a direct broadcast of the first match between Lithuania and Great Britain. For the British nation, basketball does not say much, for Lithuanians it is the most popular sport and is often referred to as the na-

snacks and network. During the breaks in the match, the organisers awarded prizes to the best dressed and the best cheering supporters, which created an excellent atmosphere. The winners received exclusive prizes- Eurobasket 2011 t-shirts and instruments kindly sponsored by Unikalu. lt. Later on, participants had the opportunity to guess the score in a basketball sweepstake and win the prizes provided by Unikalu.lt and Itero offering use of the best iPhone application on which to follow the European Basketball Championship.

BCC Annual Season Opening

UK travellers are looking for somewhere new and different and Vilnius fits the bill. But the main reason must surely be the start of Wizzair flights into Vilnius and the popularity of Ryanair flights to Kaunas and more recently to Vilnius. Without the right air links you were never going to become a short break destination.

Thank you very much for your time. We would be delighted to see members of AITO coming back and experiencing what Lithuania with its capital Vilnius has got to offer.

AITO, the Association of Independent Tour Operators, is an organisation, representing over 140 of Britain's best specialist tour operators.

On the 9th of September, the British Chamber of Commerce invited members and friends to its traditional Season Opening event, which was this year held in an excellent rural tourism place „Kernavės Bajorynė“ outsideVilnius.This traditional social event of the chamber was enjoyed by 50 members and friends of the Chamber including new British Ambassador to Lithuania David Hunt and his family. On the arrival attendees were welcomed by Danutė Pažusienė, Owner of Kernavės Bajorynė who with great enthusiasm was inviting all to try Lithuanian national drink and snacks. A very special atmosphere was created by Lithuanian folk group „Kerniukai“, who not just provided an excellent entertainment on the arrival but also managed to pull out nearly everybody to try national instruments and perform within specially formed orchestra from the participants led by „Kerniukai“ leader. A welcome speech was said by Chris Butler, Chairman BCC, who greeted everyone after the summer break and introduced the event programme. The event continued with excellent buffet outside. The culmination of the evening no doubt was a wooden Mercedes Benz bus „Kernavette“. The owner of the bus Patrick Lion invited everybody to take a ride to his place called „Kolchoz“, where Patrick was willingly taking everybody „back into the Soviet past“ by demonstrating a collection of old Russian automobiles and various other relics.

The British Chamber of Commerce expresses its great gratitude to "Kernavės Bajorynė" for sponsoring Lithuanian folk ensemble "Kerniukai" for the event

The Chamber expresses its gratitude to all three sponsors listed below

UNIKALU LT

LIETUVIÐKAS

DIZAINAS

BCC paper Autumn 2011

BCC paper Autumn 2011

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11

BCC Members’ News

Brits in Lithuania Interview with Hannah Shipman, professional English language specialist in Lithuania

Hotel Vanagupė Conference centre Deloitte Central Europe TOP 500 ranking: Revenue growth cannot disguise ongoing challenges

Central Europe 2011 Deloitte welcomed to the 5th edition of CE TOP 500 ranking in September. This years’ analysis of Central Europe’s leading 500 companies sees a business community across 18 countries and 7 main industries.

Photo: Hannah with her partner Vitas in Trakai Hannah, you've been in Lithuania a while. In fact a few years, how long is it, and the question we all get asked so you never need be asked it again WHY? I arrived on Žolinė in 2003 so I have just celebrated my 8th anniversary! I've been based in the Baltics over 10 years now as I came here from Tallinn to open up a sister branch of International Language Services. I originally chose the Baltics simply because no one I knew had ever been here! My first year of teaching was in Prague and I wanted somewhere as beautiful but exotic. Oh, and I don't cope very well with hot weather so Tallinn and Vilnius seemed to fit the bill! Like so many of us, I was initially on a 1-year contract but found my niche here and now wouldn't want to up-sticks again.

Please tell us more about your working life here, you teach English?

I have always been involved in language teaching in various guises. After managing ILS, I went on to work part-time at Vilnius University Institute of Foreign Languages teaching academic ESP (English for Special Purposes) to IT specialists. I'm also teaching on the BA programme for English / Russian specialists. This was a change from the other work I had previously done with adults with a whole new set of challenges. I am happy to now be working in a Lithuanian-speaking environment.

I am also involved in Cambridge ESOL exams at the British Council – again, I love the variety of testing for Young Learner Exams (for ages 7-12) through to adults (FCE, CAE) and Professional lawyers and financial specialists (ILEC / ICFE). The British Council offer excellent professional development opportunities and supportive colleagues.

My prime activity is individual tuition and small group exam preparation courses – I have a classroom on Gedimino pr. When I was deciding what to call myself, I choose to keep it simple so...now I am EnglishTeacher.lt! These three main activities keep me busy and I also appreciate the variety of editing text books and recording the audio material, other voice-over work, judging competitions and other random requests when a female native Brit is required. There are not so many of us...

What is your experience about teaching English in Lithuania? Are Lithuanians good learners?

I enjoy my work for the simple reason that people are an infinite source of inspiration and news from their sphere. Teaching takes you to places you might never (choose to) go to. You get a different feeling about company cultures from teaching in-company.

I have learned about things I never dreamed I could find interesting, eg. computer programming, auditing, marketing pharmaceuticals, banking, etc.

I think it is fair to say that most Lithuanians are naturally inclined to learn languages as they are already multi-lingual. There is so much exposure to English, that usually the level is reasonably good but with some ingrained errors. It's a generalisation but there is some truth in saying that young people are usually quite fluent speakers but have problems with formality and grammar. Older people who learned in Soviet times sometimes have a barrier when speaking but generally, if people use English at work, they already get some practice. Of course learning depends on a whole host of factors - I am teaching a group of pensioners at the moment, which requires a lot of patience from everyone!

pleasurable, but do you ever find yourself counting the years you've been here by the number of winters?

For me, the winters all tend to blend into one. I orientate myself to the academic year so I'd rather focus on the privilege of long summers; I guess we measure from September 1 in our house!

Do you have some favourite places in Vilnius you can tell us about, and around Lithuania?

Aside from the obvious spots, not many people know about the fantastic views over old town roof tops from my office loo! Really! If you are caught short on Gedimino... We have a favourite place near Aukštadvaris which is a great place for escapism near the lake where you can swim, fish, take the boat out or just have more pleasant surroundings for the inevitable marking of students' work!

whilst being here?

Yes, I was pleased to watch GB's first victory of Eurobasket in Panevėzys and I've been known to let off steam supporting Lietuvos Rytas. It's such a fast and exciting game but I always take my other-half, Vitas, with me, just to be sure that I understand the type of foul or why play has stopped. I think I've also learned to enjoy simple pleasures more. Maybe I'm just getting older but I am sure living here has influenced me too – things like growing tomatoes on the balcony (well, actually it is Vitas who has the green fingers but I enjoy reaping the rewards!). Oh, and I really miss 'sūrelis' when I go back to the UK (although I probably haven't looked hard enough for a Lithuanian shop there – maybe you can already buy them)!

Prepared by Alistair Day-Stirrat, Editor of BCC paper

Have you developed an interest for basketball

What do you enjoy the most about being in Lithuania?

I love music so I am pleased we are getting some big names coming to Lithuania but I also have fond memories of open-mic nights. I enjoy grappling with Lithuanian – it's like a puzzle and being a learner has undoubtedly made me a better teacher. I appreciate the patience that Irena from Lingua Lituanica has demonstrated too (doctors making the worst patients springs to mind). I love the views over the Neris and the forest through the window of my flat as we live quite high up - this morning it was really misty and mysterious. I also like the fact that Vilnius is a small city. I can drive but I can get everywhere by public transport – one day I might write my novel about Trolleybus 13 as it is an endless source of fuel for ideas. You can also jump in the car and be in the middle of nowhere quite easily so escaping to the countryside is another pleasure.

Living in a country with distinct seasons can be

Safes for valuables & documents Contact us: BANKSERVIS UAB Ulonų g. 5, Vilnius, Lithuania www.bankservis.eu

BANKSERVIS SIA Aristida Briāna iela 9a, Rīga, Latvia www.bankservis.lv

In Spring 2011 Hotel Vanagupe opened a brand new 1400m² Conference centre, which can accommodate over 700 participants at a time. It is the largest and most modern conference centre in Western Lithuania and is suitable for various sizes and types of events. All conference rooms have modern equipment, including synchronic translation.

An important benefit for the conference centre's clients is access to all the hotel's services: an excellent restaurant, SPA pools and bath complex, a wide range of massages, body and facial treatments, tennis courts and other leisure activities.

The Hotel Vanagupe conference centre was equipped for over € 9.5 million of which almost € 4 million were received from 2007-2013 EU Structural Funds (Cohesion Promotion Action Programme).

The remaining amount was covered by JSC Eskom shareholders, commited to the long term development of the hotel, conference and SPA centre Vanagupe.

The purpose of this project is to foster business tourism such as conference and events organization which will complement and promote better use of the existing hotel accommodation and SPA services by providing comfort and meeting recreational needs at the same time.

The implementation of the project will create new jobs, train new employees and guarentee the existing jobs of highly skilled professionals. It will also improve the process of conferencing services and ensure a higher quality of service, in cooperation with new product and service suppliers.

There are around 70-100 conferences and training days held annually at the hotel which attract hundreds of people and this positive trend should see an even greater growth rate in the coming years.

We would be delighted to have BCC members among our growing network of clients!

Following two years of cutting corporate “fat” to create more streamlined and efficient organisations across the region, close to 80% of Central Europe’s 500 largest companies earned higher revenues in 2010 than the year before, when just 16% did so. This is one of the core findings of the report, which found CE’s most senior executives focusing on growth, financial performance and innovation as the three primary keys to driving sustainable recovery in their organisations.

According to Deloitte CE CEO Mike Barrington, though, growth appears set to remain elusive. “It makes little difference whether companies are from those economies showing some signs of recovery, like Poland, the Czech Republic and Slovakia, or from those such as Romania, Hungary and Croatia whose economies are still struggling to recover. They face

the same issues: consumers are limiting their spending; businesses are keeping a tight rein on costs; and slowing Western economies are threatening export opportunities,” – he added.

The results of Lithuanian entities follow the similar trend as other CE countries, – declared Linas Galvelė, the Head of Financial Advisory Services Department at Deloitte Lithuania. The number of Lithuanian companies in CE TOP 500 decreased to 8 companies in 2010 compared to 9 in 2009. The Lithuanian list is unsurprisingly headed by Orlen Lietuva which increased revenues by 43%. Lukoil Baltija UAB and Lietuvos Gelezinkeliai AB reported annual revenue growth of 22% and 18% correspondingly; this helped them to “earn” the membership in TOP CE500 list.

To sum up, it’s obvious that the region’s leading companies have the will and the operational and strategic expertise to support a recovery from even the deepest crises. These strengths continue to be important assets across the region in this time of continued uncertain growth and economic concern.

BCC paper Autumn 2011

BCC paper Autumn 2011

12

13

Vilnius Airport Turned into a Basketball Photo Gallery

Tark Grunte Sutkiene – the most dynamic law firm in Lithuania Full service business law firm Tark Grunte Sutkiene has been announced as the winner of the Corporate INTL Magazine 2011 Global Award “Dynamic Law Firm of the Year in Lithuania”.

Tark Grunte Sutkiene's success in this award acknowledged the innovative changes made to the firm and the services it has provided during the recession and the way in which it has, not only demonstrated resilience, but has also continued to thrive and show signs of growth and positivity.

Since 2005 Corporate INTL has been firmly established as one of the leading monthly titles for business leaders, professional advisers and providers of finance throughout the world.

The Corporate INTL Awards reward those who have been active this past year and have demonstrated superior client service and legal knowledge.

All award winners are chosen through a process of

ments in basketball: check-in desks decorated with successful field goals, rebounds and breakthroughs by basketball players; Robertas Javtokas, Linas Kleiza, Martynas Pocius and Šarūnas Jasikevičius jumping high into the air next to departure information boards; 3 m tall basketball photographs installed right before the screening area. The gallery continues in the interior spaces of the airport as well: security-restricted arrivals halls, arrivals corridors and on the way to the Business Lounge.

This is the second time that Vilnius Airport has been decorated with the most striking moments of Lithuania's battles on the basketball court, recorded by the photographer of the Lithuanian national basketball team Tomas Tumalovičius. The photo exhibition will fascinate the arriving and departing passengers until the very end of the European Basketball Championship.

We specialize in manufacturing bedroom and living room furniture. Our bedroom furniture consists of beds, bedside tables, chest of drawers & cupboards, while we produce cupboards, sideboards, dining tables & coffee tables for living rooms. The furniture is produced both from natural solid wood and mixed with veneered components or MDF. The company is proud to extend its long lasting tradition of furniture production in Jonava. We invite

We look forward to seeing you!

September – the first month of autumn, when the days are colder, but at the same time are painted in gold, with falling leaves and have an apple flavour.

This autumn is golden for our company too - this September marks the 100th anniversary of our foundation.

Briefly reviewing the company's history, we can note that the company's first production facilities were founded in 1911. Over the years both the product range and company's name have changed. In 1946 there the furniture factory was called "Beržas."

After 1947 "Beržas" was named “Jonavos baldų fabrikas”, which in 1994 was changed once more to JSC "Baldai Jums".

The company's focus has been furniture production and export. As much as 97% of the company's total production is exported to prestigious retail markets in Germany, the United Kingdom, Austria and Scandinavia. The experience of our highly skilled staff, along with our high-quality materials and modern equipment make us a competitive and reliable manufacturer.

"Baldai Jums" has installed the complete production cycle, which begins with the purchase of logs and finishes with packaged furniture. The company has the most modern wood drying kilns in Lithuania, CNC machining centres and other modern manufacturing facilities, and invests in new technologies and equipment each year.

VARUL`s news: new office, new people, new networks Scandinavian Airlines have the pleasure to announce its brand new and first ever direct connection between Palanga and Oslo that will start on October 31. The flying time will be 1 hour and 20 minutes.

The new route will be operated with a 110-seat Boeing 737-600 aircraft three days a week on Mondays, Wednesdays and Fridays.

From Oslo, the journey may be continued with SAS and Wideroe airlines to many domestic destinations

the Lithuanian team: attorneys at law Mr. Liutauras Baikštys and Ms. Giedrė Dailidėnaitė. Mr. Liutauras Baikštys has extensive experience in Banking and Finance, Corporate and M&A, Construction and Real Estate as well as FIDIC related Dispute Resolution and Arbitration. Ms. Giedrė Dailidėnaitė has extensive experience in Corporate and M&A, Competition, Real Estate & Construction, Employment areas. Mr. Baikštys now leads the pan-Baltic Banking & Finance practice group and Ms. Dailidėnaitė leads pan-Baltic Corporate law practice group.

in Norway, Scandinavia, selected European cities and to the USA. The new Palanga - Oslo route is yet another line on the SAS route network – currently, SAS offers in Lithuania direct routes to Copenhagen from Palanga and Vilnius. There are more than 60 Scandinavian destinations in SAS network.

Prices start from 257 LTL one way, including all taxes and service fee when booking on SAS website.

A memorable way to celebrate the beginning of 2012

Samsung Electronics Baltics has been a sponsor of Lithuanian basketball for 7 years.

New members of VARUL team: Liutauras Baikštys and Giedrė Dailidėnaitė

Law firm VARUL has opened its 5 office in Minsk, Belarus. Thus expanding the number of jurisdictions in which VARUL is presents and now covers Lithuania, Latvia, Estonia and Belarus. th

Further, as a matter of continued expansion in June 2011 two highly valued legal experts joined

As a result of further development, VARUL, first of Baltic law firm has joined two renowned legal networks – the Chinese European Legal Association and The Law Firm Network. Both networks enable us to share know-how with international colleagues and help further accommodate the clients’ growing need for international legal assistance.

Eversheds Saladžius sponsored the annual business leaders conference Lūžio taškas Annual business leaders conference in Lithuania Lūžio taškas was held on 22-23 September in Palanga. The conference, participated by the top business leaders in Lithuania, summoned approximately 300 participants from the leading companies in Lithuania. Lūžio taškas happens to become one of the major business events in the country.

Document shredders, data erasers Contact us: BANKSERVIS UAB Ulonų g. 5, Vilnius, Lithuania www.bankservis.eu

BANKSERVIS SIA Aristida Briāna iela 9a, Rīga, Latvia www.bankservis.lv

Le Meridien Vilnius is happy to welcome all BCC members and their children for the Christmas and New Year period. For New Year’s Eve we have prepared an ideal package for those looking for a memorable way to celebrate the beginning of 2012 – with a nice atmosphere, spectacular fireworks, live performances and an 80’s style disco. Our chef is currently preparing a delectable four-course Gala

you to visit our stores - the “Akropolis” furniture store in Vilnius, "Nemunas" furniture store in Kaunas and the furniture store and showroom in our factory in Jonava, where you can find our full range of products. Alternatively, you can visit our online store at http://parduotuve.baldaijums.lt/. On the occasion of our centenary celebrations this September, the perfect living room range "Vintage" and children's beds will be subject to special prices.

public nominations and detailed research looking at service range, business type, geographical location, how the business operates and the expertise each law firm can offer to clients and companies in their respective practice areas. The firms are then reviewed by an independent awards panel consisting of business leaders, experts in the relevant field of law and the editor of Corporate INTL Magazine.

NORWAY JUST GOT CLOSER - as from October 31 SAS will start new direct connection: Palanga - Oslo!

As a welcoming gesture to the European Basketball Championship of 2011 in Lithuania, Vilnius International Airport has been decorated with an impressive-size photo exhibition of Lithuanian basketball players. Sixty photographs have been placed throughout the airport: attached to the ceilings, walls, check-in desks and near boarding gates.

The exhibition The Heart of Basketball was initiated

by Samsung Electronics Baltics, the sponsor of the Lithuanian national basketball team.

“The goal of the exhibition is to show the glory of Lithuanian basketball through the recorded victoryworthy throws, emotion-filled eyes of basketball players and fans’ joy at victory,” the initiator of The Heart of Basketball Tomas Tumalovicius says. “Foreign visitors can also find photos of well-known and beloved basketball players from their countries.”

Departing guests and airport visitors seeing them off are now surrounded by the most startling mo-

„Baldai Jums“ – 100th anniversary

Dinner menu to delight your palate. Moreover, during the winter holidays numerous activities will await you and your children including a winter barbeque on the lake side, ice skating, dog sledding and other entertainment, both inside and outside of the hotel. Be the first to book the package and get the best table!

For a fourth year already Eversheds Saladžius had become a sponsor of the conference.

This year Eversheds Saladžius sponsored David Magliano‘s arrival and presentation. David elaborated on long-time objectives in sports and business.

David Magliano is the architect of the idea of

London 2012 Olympic games. A team comprised of David Magliano, Her Magisty Queen Elizabeth II, Tony Blair and other famous politicians of the UK has won the right to hold the 2012 Olympic Games in London. This was the most vehement battle of cities throughout the history of the Olympic Games. David devised and directed the crucial final presentation in Singapore described as the fiercest competitive pitch of all time. After this winning, London became the only city of the World to host the Olympic Games for the third time.

UK Consultants appreciate work-life balance in Vilnius Mike Guttridge and Terry Gregory of Smith Guttridge & Associates will be back in Vilnius as promised in late September. They already have 1/2 day workshops lined up at Vilnius and Mykolas Romeris universities with one other waiting confirmation.

They will also be meeting Lithuanian colleagues to catch up on what’s happening generally in business and to discuss collaboration and future projects.

Their schedules are always busy so it’s really important for them to have a good base where they can relax as well as work and meet people. They have stayed at most of the main hotels in the city but for their last few visits the Shakespeare has been their firm favourite, and not just for its location near Vilnius university. They also appreciate the local restaurants and will definitely be revisiting Markus, St Germaine and Lola’s among others.

They enjoy being in Vilnius and have missed their Summer visit this year. They say visiting Lithuania is not just about work, which they find very satisfying,

but about meeting people and enjoying the Lithuanian culture and language. It also gives them a different perspective which influences the way they work back in the UK – and is a topic of conversation when Terry meets Lithuanians studying at UK universities.

Getting work-life balance right is not easy when times are economically difficult but people need to have some (healthy) distraction from work and some-thing else to focus on, even when working 7 days a week. Mike’s current interest is in developing resilience and particularly in leaders with resilience as they can make a real difference for their teams and organisation. If you are interested in this topic please contact us through BCCL.

BCC paper Autumn 2011

BCC paper Autumn 2011

Presenting New BCC Members

14 BCC Corporate Member

Calenberg Vilnius

Mr Andrius Lisovskis, Director Calenberg Vilnius was founded 17 years ago and is a leading company in the Baltic region providing relocation services. In order to offer our clients an even wider range of services in 2005 we became the official distributor in Lithuania of Steelcase - the global leader in office furniture industry. This furniture perfectly meets our philosophy – leadership and the highest quality.

Steelcase designs and manufactures architecture, furniture and technology products, including office chairs, desks, storage, and space divisions. As an expert on the workplace, Steelcase helps people to have a better work experience, by providing products, services and insights into the ways they work.

The company has a passion to understand people at work, observing them to understand the changing needs of individuals, teams and organisations.

BCC Corporate Member

Lautus Holdings

Mr Taurimas Valys, CEO, Board member, Partner LAUTUS Holdings UAB is the parent company of all the major enterprises belonging to the LAUTUS GROUP (Anno 1991; further – LAUTUS). It is a set of directly related companies, that combine their investment management (holding and, mainly, operating as a private equity investor) and offer the highest level of specific advisory activities with active exposure to the Baltic and neighboring CEE / CIS countries (focusing on Russia, Ukraine, Moldova & Belarus). LAUTUS has almost twenty years of broad business development and consulting experience, implementing various projects in the Baltics and abroad.

The core team of LAUTUS associates features professionals who previously held managerial and leading positions at Lietuvos Energija AB, the Big Four firms, licensed international asset management companies and other financial and governmental institutions (incl. joint implementation of projects with IBRD, EBRD, EIB, EC, UNDP et al). Since its inception (1991), LAUTUS has worked actively on numerous important projects of broad business scope and relevance: commodities trading, precious metals and other areas of commerce. LAUTUS was among the founders of the

Steelcase believes in a balanced approach to profit, people and planet. Beginning nearly 100 years ago, the company committed to a social contract with the communities in which it lived and served to produce great furniture, be a great place to work, share profits with its shareholders and the community and leave the world a better place. Steelcase continues to make significant progress in each of these areas, but they’re always aware there’s more they can do.

Whatever you need to accomplish, Steelcase can provide you with the environment and the tools to do it better, faster and more effectively. It’s worth doing business with Steelcase, as it has more than 650 independent authorized dealers in over 850 locations worldwide, offers a range of more than 500 high quality product lines, an 8 year warranty and furniture delivery in less than 1 month. You get what you need, when you want it, regardless of where your project is based.

Knowledge + Products + Services => Our job is to make your job easier Company Contact details: Visit us in our brand new STEELCASE SHOWROOM Kęstučio St. 50/31 08112 Vilnius, Lithuania Tel.: +370 5 210 9110, +370 687 26859 Fax: +370 5 243 0005 E-mail.: steelcase@calenberg.lt www.calenberg.lt Baltic Exchange, which was the main trading platform for commodities in the region.

LAUTUS' Business Lines: Strategic investments (incl. M&A, commodities, securities, etc.)

PPP development projects Equity and debt capital raising (incl. CPF) Strategic business development and management consulting Insolvency process management (The Department of Enterprise Bankruptcy Management under the Ministry of Economy of the Republic of Lithuania has issued two licenses to LAUTUS Business Solutions UAB (formerly named LAUTUS UAB, - currently acting under the abovementioned title) which allow the company to provide restructuring and bankruptcy management services for private companies, as regulated by Lithuanian legislation) & Legal Services LAUTUS' Target Sectors UTILITIES WASTE MANAGEMENT ENERGY (The subsidiary company “LAUTUS trading” has an Independent Electricity Supplier's license, issued by the State Price Regulation Commission of Energy Resources) INFRASTRUCTURE-RELATED INDUSTRY (MANUFACTURE) FINANCIAL SECTOR IT AND COMMUNICATION Company Contact details: Lautus Holdings, UAB Konstitucijos av. 12 LT 09308, Vilnius, Lithuania Tel. /Fax. +370 5 213 80 63 E-mail: info@lautus.lt www.lautus.lt

BCC Corporate Member

JSC Glassbel Baltic

JSC Glassbel Baltic factory in Lithuania Glassbel Baltic is continuing successful growth and expansion of the export architectural glass products in the various parts of Europe. Successful cooperation of leading façade manufacturers in Germany, Austria, UK, and Scandinavian countries as well as stabilizing economy let us to participate in most advanced and important project like “Wertheim” in Berlin, Germany, “Arts Tower” in Sheffield, UK, Swedbank arena in Sweden, and other. Tough start in first half of the year with South East European market, right know resulted in successful participation and supply of the sophisticated insulated glass units for structural façade for the

List of BCC Members BCC Sponsor Members equipment, security products and solutions BERNOTAS & DOMINAS GLIMSTEDT (www.glimstedt.lt) / Legal services Bunnahabhain rep. by Mineraliniai vandenys, UAB Production of single islay malt Scotch Whisky www.bunnahabhain.com

Company Contact details: JSC Glassbel Baltic Pramones St. 11, LT-94102 Klaipeda, Lithuania Tel. +370 46 416 380 Fax. +370 46 416 389 Email: info-baltic@glassbel.com www.glassbel.com

Best Western HOTEL VILNIUS (Naujasis Vilnius, UAB) (www.vilniushotel.eu) / Centrally located Hotel, restaurant, conference centre, fitness centre, swimming pool and sauna BITĖ LIETUVA, UAB (www.bite.lt) / Telecommunications BIURO PASAULIS, UAB (www.biuropasaulis.lt) (www.elektromedia.lt)/ /Office supplies, printing management and IT solutions

The Conversation Starts Here Doing business involves trust and relationships. While a lot of business nowadays can be done on-line with no physical contact, we believe that nothing beats meeting people face-to-face.

Take part in our business and social activities and tap into the community now!

If you would like to become a member of one of the most active business organisations in Lithuania, please contact the BCC today by email: bccl@bccl.lt or tel. +370 5 2690084

www.bccl.lt

Baltic Legal Solutions Lithuania Full service law firm www.blslawfirm.lt

Carlson Wagonlit Travel Corporate travel management www.carlsonwagonlit.lt www.kalevatravel.lt

BCC

Forthcoming Events Calendar SEPTEMBER 28TH, WEDNESDAY, 8.00 A.M. Breakfast Technical Briefing Topic: “Art: is there space as for an alternative investment?”

Venue: Shakespeare Hotel (Bernardinų str. 8/8, Vilnius)

PricewaterhouseCoopers Assurance, Actuarial, Advisory, Tax and Legal services www.pwc.com/lt

NOVEMBER 5TH, SATURDAY Guy Fawkes (Bonfire) Night

Strategic Staffing Solutions International Provider of information technology solutions. Recruitment Services www.strategicstaff.com

NOVEMBER 30TH, WEDNESDAY, 8:00 A.M. Breakfast Technical Briefing Venue: Shakespeare Hotel (Bernardinų str. 8/8, Vilnius)

British Council (www.britishcouncil.lt) / the United Kingdom’s international organisation for cultural relations and educational opportunities.

Calenberg Vilnius (www.calenberg.lt )/ International moving/ relocation and dealership of the office furnitureSTEELCASE CAMIRA FABRICS Ltd (www.camirafabrics.com) / Contract seating & transportation fabric manufacturer

COWI LIETUVA, UAB (www.cowi.lt) / Consulting and engineering services related to building design & engineering, energy, environment, territory planning, topographic survey, hydraulic engineering, technical supervision, water and sewage systems design

DANSKE BANK A/S LIETUVOS FILIALAS (www.danskebankas.lt) / Banking services DEKONA, Evaldo Darškaus IĮ (www.dekona.lt ) / Management Consulting: Operational efficiency, Lean, Six Sigma, process improvement DELOITTE (www.deloitte.lt) / Audit. Tax & Legal. Consulting.

Financial Advisory. Enterprise Risk Services

BCC IT Partner

NOVEMBER (date tbc) BCC New Members Evening NOVEMBER 23RD, BCC & IQ joint event on Corruption theme

BNTP, UAB (www.bntp.lt) / Private equity investment; real estate development and investment; asset management; project management; facilities management.

CORMACK CONSULTANCY BALTIC LT Ltd (www.ccbaltic.eu)/ Business development, export development, market researches, consultancy in investment, innovation, management

OCTOBER (date tbc) BCC Speaker meeting OCTOBER 26TH, WEDNESDAY, 8.00 A.M. Breakfast Technical Briefing Venue: Shakespeare Hotel (Bernardinų str. 8/8, Vilnius)

BLACK & DECKER (Hardim, UAB) (www.blackanddecker.com ) / Black & Decker power tools distributor and service provider in Lithuania

CID BALTIC (www.cid.biz) / Development, services and implementation of enterprise level tailor-made software for financial, trading, media and production business line and public sector.

CID Baltic

BCC PR Partner

DECEMBER (date tbc) Traditional Christmas Carols Venue: Shakespeare Hotel (Bernardinų str. 8/8, Vilnius)

DELTA MANAGEMENT SOLUTIONS, UAB (www.deltamanagement.lt )/ Recruitment, Executive Search, Temporary Staffing, Personnel Assessment, Outplacement, Greenfield Staffing Support DPA LIETUVA (www.dpa.lt) / IT infrastructure solutions, IT security solutions, Solutions for Education, software deployment and management, information and document management system, customized IT projects

ARIJUS (www.arijus.lt ) / Transport and Logistic services AVIS Rent a Car & Leasing Company (Litideal, UAB) (www.avis.lt) / Car rental and leasing AVIVA LIETUVA, Joint Stock Limited Life Insurance and Pension Company (www.aviva.lt) / Life insurance and pension funds ĄŽUOLYNO Clinic (www.azuolynoklinika.lt) / The first private clinic in Lithuania for psychological problems, psychiatric disorders, alcohol and drug addiction treatment, long – term nursing. Patients can be consulted or hospitalised.

Baldai Jums, UAB (www.BaldaiJums.eu) / Solid wood furniture production Baltic American Medical & Surgical Clinic (www.bak.lt )/ Health Care Baltic Holidays (www.balticholidays.com) / Tour operator in the UK specializing in Lithuania, Latvia & Estonia Baltic Survey and Shipping Bureau Ltd. (www.bssb.lt) / Marine and Cargo Surveys, Valuation Surveys of the Vessels and Port Infrastructures, Average Agent BALTIC SURVEYS (Baltijos Tyrimai, UAB) (www.gallup.com) / Market research BANKSERVIS, UAB (www.bankservis.lt) / Bank and office

VARUL, Law firm (www.varul.com ) / Legal services in all fields of business law in Lithuania, Latvia, Estonia and Belarus

JURIDICON, Law Firm (www.juridicon.com) / Legal services, tax consulting, corporate services, legal project & risk management. Member of Warwick Legal Network.

Vilnius International School (www.vischool.lt) / International Baccalaureate World School. Early childhood education, primary and middle school.

KAUNAS AIRPORT (www.kun.lt ) / Airport

Vilnius MONTESSORI pre-School (www.vms.lt) / English Language pre-School

KAUNAS FREE ECONOMIC ZONE MANAGEMENT COMPANY (www.ftz.lt ) / Real estate development KERNAVĖS BAJORYNĖ, Conference and Leisure Centre (www.kernavesbajoryne.lt )/ Conferencies, leisure and other activities KLAIPĖDA FREE ECONOMIC ZONE MANAGEMENT COMPANY (www.fez.lt) / Management and development of Klaipėda Free Economic Zone KPMG Baltics, UAB (www.kpmg.lt ) /Audit, Tax, and Financial Advisory services LAUTUS Holdings, UAB (www.lautus.lt ) / Asset management (mainly, private equity investments) and related strategic business advisory services (incl. insolvency management, legal consulting, fundraising (private placement), CPF. LE MERIDIEN VILNIUS & V GOLF CLUB (VILLON, UAB) (www. lemeridienvilnius.com) / Hotel, Leisure, Golf, Real Estate LawIN Lideika, Petrauskas, Valiūnas ir partneriai(www.lawin. com) / LAWIN is leading and internationally highest ranked business law firm in the Baltics.

MICHAEL LITTLE IR KO, UAB (www.mikelittle.lt) / ACCA accountancy tutors MOTIEKA & AUDZEVIČIUS, Law Firm (www.ma-law.lt) / Legal services MIRROR SUPPORT SERVICES, UAB (www.mirroraccounting.lt ) / Accounting services NOVOTEL VILNIUS CENTRE (Hekon, UAB) (www.accor.com) / Hotel services Ober Haus Nekilnojamas Turtas (www.ober-haus.lt )/ All real estate services ODONTIKA (www.odontika.com) / Dental surgery PERITUS SPRENDIMAI (www.peritus.lt) / EU funding, project management and legal consulting PUBLICUM, UAB (www.publicum.lt) / Public Relations, Public Affairs, Management consulting and training PZU Lietuva, UAB DK (www.pzu.lt ) / Insurance QUANTUM CAPITAL (www.qcapital.eu ) / Investment banking & strategic advisory boutique Radisson Blu Hotel Lietuva (www.radissonblu.com/ lietuvahotel-vilnius)/ Hotel, biggest centre located Conference and Event centre, Riverside restaurant, Skybar, Lobby bar, fitness centre and sauna

REENPRO, UAB (www.reenpro.lt) / We develop and construct Your solar energy park. Turn-key services. Green-field, roof-top, building integrated photovoltaic solutions REGUS (www.regus.lt ) / The world leading provider of pioneering workplace solutions, with a large range of products and services from fully equipped offices to professional meeting rooms, business lounges and the largest network of videoconference studios.

SCAENT Baltic, JSC (www.scaent.lt) / Investment Enterprise

Evolution Office System, UAB (www.EOSystem.lt ) - Serviced office, RE Development

Scandinavian Airlines SAS (www.flysas.lt) / Aviation

FINANCIAL MANAGEMENT GROUP, UAB (www.fmg.lt) / Accounting, tax consulting, legal advice

(www.shakespeare.lt) / Boutique hotel, Sonnets restaurant, Globe bar, conference halls

FINREDA, UAB (www.finreda.net) / Corporate services provider.

Legal, financial and business consulting & services including translations to Lithuanian and foreign companies

SIMEON, UAB (www.simeon.lt ) / Transport & Logistics

FIORENTINO RESTAURANT (Altomondas, UAB) (www.fiorentino.lt) / Restaurant/ Catering Services G4S Lietuva, UAB (www.g4s.lt) / Security Solutions covering cash handling, guarding, electronic security, system maintenance, installation, courier service.

GENCS VALTERS, Law Firm (www.gencs.eu )/ full service, general practice international business law firm with offices in Riga, Tallinn and Vilnius focused on tax, litigation, M&A, corporate, immigration, finance and intellectual property law GLASSBEL BALTIC, JSC (www.glassbel.com)/ Processing architectural/ facade glass GLAXOSMITHKLINE Lietuva (www.gsk.lt) / Pharmaceuticals GrECo JLT Lietuva, UADBB (www.greco.lt ) / Insurance intermediation Grontmij/ Carl Bro ( www.grontmij-carlbro.lt )/ Engineering consultancy and design projects HALTEX (www.halbro.com)/ Knitting, sewing, embroidery, sportswear production HIGHLIFE, UAB / Manufacturing for export timber components for the furniture and construction industries.

HOTEL VANAGUPĖ (Eskom, UAB) (www.vanagupe.lt) / 5*

Investment projects; real estate; banking; life insurance and other financial services; industry, industrial engineering; logistics and sports

Intelligent Media, UAB (www.iq.lt)/ Publishing

EFT Lithuania, UAB (www.eft-group.net )/ Electricity Trading Company

EVERSHEDS SALADŽIUS (www.evershedssaladzius.lt) / Legal services

AAA, UAB (www.AAA.lt) / Business & Real estate investment, Legal services, Hotels & Travel Services

INOVA BALTIC, UAB (www.inovabaltic.com ) / Real estate and private equity investments, property and asset management

Raidla Lejins & Norcous law offices (www.rln.lt) / Legal services in all fields of business law in Lithuania, Latvia, Estonia and Belarus

EUROMONITOR INTERNATIONAL (www.euromonitor.com ) / Provider of strategic market research on countries, consumers and industries

JANUARY 28TH, SATURDAY BCC Top Annual Charity Event Burns Night

Hotel, Modern Conference centre and luxury GOLDEN Spa centre, gourmet cuisine restaurant L’Ambra Rossa

DPD LiETUVA (www.dpd.lt) / Parcels delivery for business and private customers within Lithuania & EU countries, logistics solutions for business

EKO RIVI, UAB (www.ekorivi.lt) / Consultancy in municipal and environmental infrastructure

BCC Corporate & Group Members biggest project in Bucharest , Romania named “Palas”.

Working in the projects together with general contractors, architects, and engineering biros, and by providing them a high competence, competitive, innovative and flexible solution within architectural glass possibilities is right way to enter into the projects and execute them.

Being involved between two markets (East and West) is hard job to control all markets, as they require different approach to business. Glassbel is actively increasing their number of sales representatives in European markets to supply customers with the best service and being step by step with the customer in the project management.

15

SHAKESPEARE Boutique Hotel (Olizarų rūmai, UAB)

SMITH GUTTRIDGE & ASSOCIATES (www.smith-guttridge.eu) / Business Psychology & HR Consulting including training/ coaching, career management and team and leadership development.

SORAINEN (www.sorainen.com) / Legal services in all fields of business law in the three Baltic countries and Belarus STOREBRAND BALTIC, UAB (www.storebrand.com ) / Financial services SWEDSPAN Girių Bizonas (www.swedspan.lt) / Particle board production TARK GRUNTE SUTKIENE, Law Firm (www.tarkgruntesutkiene. com) / full-service commercial law firm with offices in Lithuania, Latvia and Estonia, mainly focused on providing advice on commercial transactions in the Baltic region and Belarus.

Tauragė Industrial Park (www.tip.lt)/ Industrial premises for rent in Southwest Lithuania TRANSCOM Worldwide Vilnius (www.transcom.com) / International provider of outsourced services and solutions in the field of customer contact (client relationship management & credit management). Near shore outsourced services from Lithuania to UK and other European countries. ŪKIO BANKAS, AB ( www.ub.lt)/ Banking Ūkio Banko Investicinė Grupė, UAB (www.ubig.lt ) /

Western Union Processing Lithuania UAB (www.westernunion.com) - Financial Services ZABOLIS PARTNERS (www.zabolis.com) / Finance and Real Estate

BCC Private Members Aivaras Krasuckas Ben Harvey Christian Ranft David Telky David Holliday Dominykas Čeledinas Edmundas Aniulis Geoffrey Cohn Giedrius Jankauskas Giedrius Sabaliauskas Graham Keith Hugh Miles Thomas OBE, FCA Dr Helene Ryding Jeff Lewis John S. Gledhill John Lawrence Jouni Kaitila Jūratė Rusteikaitė – Bakšienė Marius Molotokas Mark Whittle Nikki Leftly Nick Viney Rajinder Kumar Chaudhary Richard Wernick Ron Sheppard Serge Gandzumian Sigitas Stankevičius Sigitas Žutautas Tony Bishop

BCC Board 20011-2013 Honorary President

David Hunt HM Ambassador to Lithuania Chairman Chris Butler PricewaterhouseCoopers Deputy Chairman Mike Little Michael Little & Ko, UAB Algirdas Pekšys SORAINEN Field of interest in the board - lobbying Alistair Day-Stirrat Odontika, Dental Surgery Field of interest in the board - BCC paper Amit Majithia Cormack Consultancy Baltic Lt Ltd Field of interest in the board - membership Geoffrey Cohn Private member Field of interest in the board - BCC paper Nikki Leftly BCC Private Member Field of interest in the board - social events/charity Robertas Juodka Law Firm VARUL Field of interest in the board - lobbying Rimantas Tuskevičius EKO RIVI, UAB Field of interest in the board - lobbying Sergejus Fedotovas Ūkio banko investicinė grupė, UAB Field of interest in the board – membership Tim Mahon, Deloitte Field of interest in the board - finances Observer Ieva Binkauskaitė British Embassy, UK Trade and Investment Section

BCC paper Autumn 2011