LESTO - Interim information

Due to audited financial statements of LESTO company and consolidated unaudited financial statements of LESTO group for six months of 2014

Lithuanian electricity distribution company LESTO, which is a part of the
state-controlled energy group Lietuvos Energija, during the first six months of
2014 has continued to increase operational effectiveness and investments in
upgrading distribution network. Due to the country's economic growth LESTO has
connected 11,801 objects of new customers, 37 % more than in the same period of
2013. 

In January-June LESTO group‘s EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) amounted to 250 million LTL - that is an
increase of 4.2 % compared to the same period of 2013. EBITDA margin increased
by 2.22 per cent points and amounted to 21.87 %. 

The consolidated net profit of LESTO group for the first half of 2014 amounted
to 53.4 million LTL - 2.3 times more than in January-June of 2013 when it was
equal to 22.8 million LTL. The significant improvement was influenced by the
decrease in purchase costs of electricity and other related services. These
costs amounted to 740.1 million LTL, or 12.3 % less compared to the same period
of 2013. "Consistent increase of operational effectiveness and focused execution of
strategic decisions continued to improve company's performance.  Assuring an
increase of the value added for our customers we aim for ambitious financial
results. We increase investments in improving distribution network, shortening
and simplifying the process of the new customer connection and developing
remote customer service channels. The first half of this year is significant
for us, because we have confirmed LESTO long-term strategy for 2014-2020, where
we outlined specific long-term targets, including enhancement of the company's
value,” said Aidas Ignatavičius, LESTO CEO and Chairman of the Board. 

LESTO group‘s revenue of January-June of 2014 amounted to 1.143 billion LTL
and, compared with the same period of 2013, declined by 6.3 %. Revenues shrank
due to the decrease of electricity prices to consumers. The volume of network
service during the reported period increased by 0.5 % and amounted to 4.2
billion kWh. 

During the first half of the year 32 % of electricity network service volume
was allocated to residents. Industrial and service institutions consumed 28 %
and 11 % respectively, other objects - 29 %.   In the first six months of 2014,
LESTO investments in electricity network expansion and modernization reached
120 million LTL - this is 6 % more compared to the same period of 2013. In
order to increase network reliability and security, compared to the same period
of 2013 investments increased by 36.9 % in reconstruction of low voltage 0,4-10
kV network. 

In January-June of 2014, with the influence of natural disasters (“force
majeure”) the system average interruption duration index (SAIDI) per customer
amounted to 76.57 minutes, while during the same period last year it was equal
to 50.41 minutes. This index has increased due to unfavorable weather
conditions in spring - 78.4 % of electricity distribution system consists of
overhead power lines, so the electricity supply is still very dependent on the
weather conditions. SAIDI index excluding “force majeure” did not change
significantly during the first half of 2014 and amounted to 32.16 min. (2013
January-June - 32.58 min.). 

During the reported period of 2014, with the influence of natural disasters
(“force majeure”), the system average interruption frequency index (SAIFI) per
customer reached frequency of 0.63, while last year it was equal to 0.58. SAIFI
index excluding “force majeure” reached 0.42 times and, compared with the same
period of 2013, has decreased slightly. 

LESTO group consists of subsidiaries Elektros tinklo paslaugos, NT Valdos and
associated companies Technologijų ir inovacijų centras and Verslo aptarnavimo
centras. 

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


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

Attachments:

2014_1H_report_LESTO_EN.pdf

LESTO_2014_1H_financial_results_presentation_EN.pdf