LESTO - Interim information

LESTO group Q1 2015 results: record investments and better client service

LESTO AB, identification code 302577612, registered office placed at Aguonų
str. 26, Vilnius, Republic of Lithuania. The total number of registered
ordinary shares issued by company is 603 944 593; ISIN code LT0000128449. 

Lithuanian electricity distribution company LESTO, which is a part of the
state-controlled energy group Lietuvos Energija, in the first quarter of 2015
boosted investments in network upgrade, increased operations efficiency and
offered more convenient services for customers. 

During the three months of 2015 LESTO investments reached EUR 17.3 million -
this is 44.2% more compared to the same period of 2014. Since the company's
inception this is the biggest investments during the first quarter. 

Aidas Ignatavičius, CEO of LESTO, says that increasing investments in network
upgrade will ensure better reliability and quality of services, will reduce
costs for equipment maintenance and repair. Investment in network upgrading and
reconstruction increased at most - by 3.8 times to EUR 8.8 million. "The current state of the electricity distribution network requires significant
investments. We seek to ensure that the network is not only reliable, but also
safe and fits the needs of our customers. It is also important to invest in
advanced and smart technologies, because it reduces operating costs and
increases operational efficiency,” - says Aidas Ignatavičius. 

He added that in the first quarter of 2015, the company has streamlined power
connection process for new customers. From now on, all documents required to
establish a power connection can be issued in one visit.  During the first
quarter of 2015 LESTO have connected more than 5.3 thousand new customers - 36%
more than in the same period of 2014. New users connected capacity allowance
amounted to 84 thousand kW and increased 52%. 

During January-March of 2015 LESTO group‘s EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization) amounted to EUR 42.3 million - that is an
increase of 4.6% compared to the same period of 2014. EBITDA margin increased
by 3.72% points and amounted to 26.59%. 

The operating expenses totalled to EUR 21.64 million - 1.2% less than in the
same period of 2014. Due to better management of premises rent utility costs
have reduced almost by a quarter. 

The consolidated net profit of LESTO group for the three months of 2015
amounted to EUR 27.9 million - 2.4 times more than in January-March of 2014
when it was equal to EUR 11.6 million. This was resulted due to significantly
lower depreciation and amortization expenses. They are calculated on the basis
of a new assessment of the Company's tangible assets. 

Purchase costs of electricity and other related services decreased by 17% to
EUR 95.2 million.  The volume of network service during three months of 2015
increased by 1.1% and amounted to 2.2 billion kWh. 

During the first quarter of this year LESTO purchased 575 million. kWh in the
Nord Pool Spot power market, where the average kWh price was around 4 euro
cents. From the top three Lithuania electricity producers, which operated at
that time, LESTO purchased 293 million. kWh of electricity with twice higher
average selling price - 8.7 euro cents per kWh. While purchasing less
electricity from combined heat and power plants LESTO saves costs of to the
public service obligations cost. 

LESTO group revenues in the first quarter of 2015 amounted to EUR 159.2 million
- 10.1% down compared to same period in 2014. Revenues shrank due to the
decrease of electricity prices to consumers. 

“Since January 1st, electricity prices decreased more than 6 percent on
average. We are delighted that the lower prices were partly determined by our
increasing efficiency. We endeavour to save both: the company‘s and electricity
consumers finances. Due to lower electricity prices statistical household in
Lithuania will save EUR 14 per year compared with last year”, - says CEO of
LESTO. 

During the first quarter of 2015, with the influence of natural disasters
(“force majeure”) the system average interruption duration index (SAIDI) per
customer amounted to 37.65 minutes, while in 2014 January-March it was equal to
51.07 minutes. With the influence of natural disasters the system average
interruption frequency index (SAIFI) per customer decreased from 0.33 to 0.32. 

At the end of February this year, the Board of Lietuvos Energija approved the
concept of activity chain purifying programme for Lietuvos Energija group,
foreseeing the merger of LESTO and Lietuvos Dujos AB to the joint venture
distribution network company. 

LESTO shares are quoted on the “Nasdaq OMX”. The state-owned energy company
Lietuvos Energija, UAB owns 94.39% LESTO shares, remaining shares are traded on
the stock exchange. 

In 2014 LESTO investor relations practices were among the best Nasdaq Baltic
listed companies. 

Information is not confidential.


         Representative for Public Relations Martynas Burba, Tel. No (8~5) 251
4516.

Attachments:

LESTO_2015_1Q-EN.pdf

LESTO_2015_Q1_financial_results_EN.pdf