LESTO AB - Interim information

Operating results of LESTO for twelve months of 2012

Distribution network operator LESTO AB group's unaudited net loss in 2012
decreased by 26% compared to 2011 and amounted to 45.62 million LTL. Group‘s
revenue increased by 1.7% compared to the same period of 2011 and amounted to
2.284 billion LTL. While implementing long-term strategy which was approved
last year, all the main ratios have improved. 

Decrease in technological losses made especially positive impact for financial
results - technological losses of 2012 amounted to 7.8% from the electricity
received. In comparison, in 2011 8.3% of electricity have been lost. 

During twelve months of 2012 the amount of LESTO network service reached 8,113
million kWh. Electricity sales made up 44.5% of this amount. 

„Company‘s revenue increased due to the growing amount of new costumers and
better economic situation in Lithuania. Better net result of LESTO was caused
by consistently implemented changes - Company‘s centralization, decrease of
operating costs, purposefully planned investment determines more effective
network. LESTO approved long-term strategy last year, which describes further
changes inside the company until 2020“ - states Arvydas Tarasevičius, CEO of
LESTO AB. 

The increase in effectiveness of LESTO is revealed by the positive EBITDA
margin (Earnings Before Interest, Taxes, Depreciation and Amortization) change
- in 2012 it was 17.12% when in 2011 - 16.13%. EBITDA of the Group increased by
7.9% comparing to 2011 and reached 390.964 million LTL. The reason why the
group faces net loss is the peculiarities of regulation. Depreciation and
amortization costs in financial statements are higher than those which are put
in distribution tariffs and set by regulator. 

In 2012, LESTO investments in electricity network expansion and modernization
reached 322.8 million LTL. This was 9.3 per cent more compared to the
investment in 2011.In 2012, the biggest increase (24.8%) was in investment in
the reconstruction and overhaul of 0.4 - 10 kV electricity network. Investment
in the reconstruction of 110/35/10 kV transformer substations and 10 kV
distribution subsections has increased by 2%. 

In 2013, the Company will implement the projects that will be partly financed
by the EU Structural Funds. LESTO signed three finance and administration
contracts with Ministry of Economy of the Republic of Lithuania and the public
enterprise Lithuanian Business Support Agency on December 28, 2012, to
implement these projects: up to 4.6 million LTL from the EU Structural Funds is
allocated to electricity distribution network modernization and expansion in
the gardeners communities, up to 7.8 million LTL - overhead power lines
replacement with cable lines and up to 15 million LTL to transformer
substations modernization. 

LESTO is one of the biggest companies by market capitalization in OMX Baltic
securities exchange market. On 3 May, 2012 LESTO share price reached the
highest point during the reporting period - LTL 2.22. During the reporting
period LESTO share price increased by 9.44%. 

This notice is deemed non-confidential.


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

Attachments:

LESTO_12m_financial_information.pdf