LESTO AB - Interim information

Preliminary unaudited operating results of LESTO AB company group for three months of 2013

Vilnius, Lithuania, 2013-05-31 08:56 CEST (GLOBE NEWSWIRE) -- More effective
activities and formerly investments let LESTO AB significantly reduce operating
costs and earn profit in the first quarter of 2013 despite 3 % lower
electricity distribution tariffs. LESTO group‘s consolidated net profit in the
first quarter of 2013 amounted to 14.41 million LTL, while LESTO group‘s net
loss amounted to 6.45 million LTL in the same period of 2012. 

From the beginning of the year 2013 tariffs of LESTO services - the
distribution of electricity in low and medium voltage networks - were reduced
about 3 %. During the three months of 2013 the amount of LESTO network service
decreased by 0.2 % comparing with the same period of 2012 and reached 2,210
million kWh. 

During the first quarter of 2013 LESTO group earned 647.35 million LTL and
comparing with the three months of 2012 sales revenue increased by 3.45 %
(625.78 million LTL). Such revenue change was influenced by the increase of
electricity prices for consumers that were enhanced due to higher Public
Service Obligations (PSO) fee and other services, that are provided in the
sector, prices. 

The increase in effectiveness of LESTO group shows growing EBITDA margin
(Earnings Before Interest, Taxes, Depreciation and Amortization) - in the first
quarter of 2013 it was 19.21 % when in the same period of 2012 - 15.96%. EBITDA
of the roup increased by 24.5 % comparing with the three months of 2012 and
reached 124.33 million LTL. The company‘s net operating results are reduced due
to peculiarities of regulation. Depreciation and amortization costs in
financial statements are higher than those which are calculated in distribution
tariffs and set by regulator. 

In the first quarter of 2013 LESTO group‘s operating expenditure amounted to
70.35 million LTL and decreased by 9.9 % comparing with the three months of
2012. LESTO group‘s operating expenditure declined in all expenditure groups. 

„LESTO continuously improves the efficiency of its operations, invests into the
electricity grid - these were the main reasons why LESTO has earned the first
quarterly net profit since the establishment of the company. The costs are
reduced by the increasing efficiency of business processes, therefore customer
service quality is consistently improving. The assessment of the reliability of
the electricity supply, customer satisfaction and other indicators shows that
LESTO is ahead of the averages of the Europian Union utility companies“ - says
Arvydas Tarasevičius, CEO of LESTO AB. 

During the first quarter of 2013 LESTO has connected 3,194 objects of new
customers. The permissible power for new customers connected amounted to 57,927
kW, which is 7.6 % more than in the three months of 2012. 

Regardless of the influence of natural disasters („force majeure“) the system
average interruption duration index (SAIDI) per customer was equal to 12.12
minutes in the three months of 2013 (in the first quarter of 2012 SAIDI
amounted to 15.35 minutes), the system average interruption frequency index
(SAIFI) per customer reached 0.17 times (in the first quarter of 2012 SAIFI was
equal to 0.23 times). 

„LESTO purposefully plans investments in the network and, regardless of
prolonged winter, the company continues the modernization and development of
grids. Former investments were the reason why the quality indicators of the
electricity distribution network improved by a half, technological losses in
the distribution network reduced. According the approved long-term strategy,
LESTO will continue to improve its operations efficiency. The new technologies
will let the company to achieve even better results in the future“ - states
Arvydas Tarasevičius, CEO of LESTO AB. 

This notice is deemed non-confidential.

Finance department, Artūras Paipolas




         Representative for Public Relations Ernestas Naprys, Tel. No (8~5) 251
4516.

Attachments:

Results_2013_1q_EN.pdf