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Hepsor corrects 2021 Annual Report misstatements in the 2022 Annual Report

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The  Group  announces  that  the  reference  contained  in note 1.5 ? Accounting
policies,  changes in accounting estimates and errors" in the 2021 Annual Report
?The   accounting  policies  applied  in  the  preparation  of  these  financial
statements  are the  same as  those used  by the  Group as of 31 December in the
consolidated financial statements for the year ended 31 December 2020, except as
described  below." was misleading.  It would have  been correct to  refer to the
consolidated  special purpose  financial statements  not the consolidated annual
report.  For periods  up to  and including  the year ended 31 December 2020, the
Group  prepared its statutory  financial statements in  accordance with Estonian
Financial  Reporting Standards (EFS). The Group prepared financial statements in
accordance  with  IFRS  1 for  the  first  time for consolidated special purpose
financial report for the periods from 1 January 2018-31 December 2018, 1 January
2019-31 December  2019 and 1 January  2020-31 December2020. The  special purpose
financial   report   is  available  at  Hepsor's  website  https://hepsor.ee/wp-
content/uploads/2021/11/Hepsor-IFRS-2018-2020-audited.pdf  and  the  Website  of
Finantsinspektsioon                  https://www.fi.ee/sites/default/files/2021-
11/hepsor_ifrs_2018-2020_audited.pdf. When  preparing  the  Group's consolidated
special  purpose  financial  statements,  the  opening  statement of the Group's
financial  position was prepared as of  1 January 2018, which is also considered
the date of the Group's transition to IFRS (EU).

The group corrects the comparative data for 2021 in the 2022 Annual Report:

 1. In the calculation of "Profit per share" in appendix 27 of the Annual
    Financial Statements of Hepsor AS for 2021, the number of ordinary shares as
    of the end of the reporting period on 31.12.2021 was used in the amount of
    3,855 thousand shares instead of the weighted average number of shares as
    required according to the international accounting standard IAS 33 "Share
    profit ". The correct number of shares should have been 3,124 thousand.
    Basic earnings per share and diluted earnings per share remain unchanged.
    The issuer corrected the data for the comparable period in Appendix 26 of
    the 2022 Annual Financial Statements.
 2. Hepsor AS adjusted the consolidated cash flow statement for 2021 in the
    Annual Report for 2022 by reclassifying 229 thousand euros from cash flows
    from financing activities to cash flows from operating activities.



Henri Laks
Member of the Management Board
Phone: +372 5693 9114
e-mail: [email protected] (mailto:[email protected])

Hepsor AS (www.hepsor.ee) is one of the fastest growing residential and
commercial real estate developers in Estonia and Latvia. Over the last twelve
years Hepsor has developed more than 1,500 homes and 32,000 m(2) of commercial
space. Hepsor has been the first real estate developer in the Baltic States to
implement a number of innovative engineering solutions that make the buildings
we construct more energy-efficient and thus more environmentally friendly. The
company's portfolio is comprised of 26 development projects with a total
sellable space of 176,000 m(2).