LESTO AB - Other information

Due to operating results of LESTO AB company group of 2013

Press release

Electricity distribution network operator‘s LESTO group was profitable in 2013
- audited consolidated net profit amounted to 47.646 million LTL, while during
the same period of 2012 LESTO group‘s consolidated net loss was 45.586 million
LTL. The results are improved due to more efficient company‘s operations and
increasing volume of network service. 

Group's revenue increased by 6.5 %, from 2,284 billion LTL in 2012 to 2.431
billion LTL in 2013. Such change of revenue was influenced by the increased
Public Service Obligations (PSO) fee, increased prices of electricity
transmission services and higher electricity purchase prices in 2013 - during
the twelve months electricity purchase costs and costs of related services
increased by 4.6 % comparing with the same period of 2012 and made up 1.668
billion LTL. Volume of network service increased by 1.2 % and reached 8.209
billion kWh. 

“Several reasons influenced better LESTO results. We reviewed internal
processes, improved them, therefore, more efficient activities keeps the
operating costs low. Timely investments made, lead to lower electricity losses
in technological devices. Significant impact on the company's results made up
the recovery of national economy - the volume of network service rose, the
number of new customers increased, consequentially the revenue of the company's
raises”, states Aidas Ignatavičius, CEO of LESTO AB. 

The increase in effectiveness of LESTO group determine growing EBITDA margin
(Earnings Before Interest, Taxes, Depreciation and Amortization) - during 2013
it was 18.86 % when in the same period of 2012 - 17.12 %. EBITDA of the group
increased by 17.3 % comparing with the twelve months of 2012 (390.964 million
LTL) and reached 458.581 million LTL. 

Technological losses experienced by the Company during 2013 totalled to 7.5 %
from the amount of electricity received while during the same period of 2012
technological losses totalled to 7.8 %.This means that less electricity is lost
in the distribution network and the greater part of it is provided to
consumers. 

„LESTO continues to focus on increasing the efficiency of its activities in
2014. Currently, the long-term investment strategy, which includes the
modernisation of distribution network, construction of cable lines that are
resistant to the effects of natural disasters, installation of smart meters,
information technologies and other important areas, is reviewed. By increasing
the efficiency of business services, not only the company‘s costs reduce, but
also the quality of customer service is improved“, says A. Ignatavičius. 

32 % of electricity network service volume was allocated to residents.
Industrial and service institutions consumed 28 % and 11 % respectively. 

The value of LESTO group assets at the end of the reporting period made up
5,087 billion LTL. Non-current assets share in total assets was equal to 94.8
%. 

LESTO is one of the biggest companies by market capitalization in OMX Baltic
securities exchange market. 

LESTO is part of “Lietuvos energija”, UAB, group.


         Representative for Public Relations Ernestas Naprys, Tel. No (+370~5)
251 4516.