LESTO AB - Interim information

Operating results of LESTO for nine months of 2012

Distribution network operator LESTO AB reduced operating and technological
costs, as a consequence LESTO consolidated net loss during the three quarters
of 2012 decreased by third comparing to the same period last year, from 37.2
million LTL to 24.9 million LTL. Growing electricity consumption increases the
income of the Group. 

During the three quarters of 2012 LESTO group earned LTL 1.68 billion,
comparing with the same period of 2011 it increased by 1.51 %. 

“Changes inside the Company determined better net operating result - operating
costs decreased due to more effective Company's activity. Also, the
technological losses decreased due to consistently planned investment - this
year during the three quarters they reached 7.4 % when last year - 8.21%. Even
a small change in percentage of those costs determines millions of
kilowatt-hours saved, consequently LESTO invests in modernization of
distribution network”, - states Arvydas Tarasevičius, CEO of LESTO AB. 

The increase in effectiveness of LESTO group shows changeable EBITDA rate
(Earnings Before Interest, Taxes, Depreciation and Amortization) - this year
during the three quarters of 2012 it was 299.29 million LTL which is 5.19 %
more than last year during the same period. Accordingly, EBITDA profit in
comparing period increased from 17.22 % to 17.84 %. The reason why group faces
net loss is peculiarities of regulation. Depreciation and amortization costs in
financial statements are higher than those which are put in distribution
tariffs and set by regulator. 

The main source of Company's income is income from network service that made up
68% of total income, income from public supply service consisted 22%, income
from guarantee supply for the customers that have not chosen independent
supplier amounted to 6 % of Company's income. 

More effective activity of the Company enables to increase investment in
electricity network without changing electricity distribution prices. In the
first nine month of 2012, LESTO investments in electricity network expansion
and modernization reached 123.1 million LTL. It was 20.31 % more compared to
the investment in the first nine months of 2011, because during reporting
period LESTO connected 1.48% more - 12,113 new costumers. 

“The Company seeks that electric energy supply would be more and more reliable
and effective - previous investment increased reliability indexes and
effectiveness this year, accordingly, currently investments will make a
precondition to improve indexes in the future” - states Arvydas Tarasevičius. 

During the nine months of 2012 regardless of the influence of natural disasters
(“force majeure”) the system average interruption duration index (SAIDI) per
customer was equal to 54.3 minutes which is 15.4 % better than last year.
During the reporting period 704 kilometers of underground (cable) lines were
laid, which significantly reduce the number of failures during the operation. 

LESTO's long-term strategy for the year 2012-2020 projects company's aspiration
to be effective, to use resources optimally, to serve customer's needs, and act
as company that shares society's trust. The company shall strive to increase
its value by increasing efficiency in customer services, creating a modern
organizational culture, applying up to date management methods, increasing
efficiency in business processes, reducing loss in an electrical grid, ensuring
connection of new customers and reliability of grid functioning. 


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

Attachments:

LESTO_9_m_financial_information.pdf