Energijos Skirstymo Operatorius AB - Interim information

LESTO results of: EBITDA amounted to EUR 124.8 million, investment increased by 15.9 % up to EUR 117.6 million

Energijos Skirstymo Operatorius AB, identification code 304151376, registered
office placed at Aguonu str. 24, Vilnius, Republic of Lithuania. The total
number of registered ordinary shares issued by company is 894 630 333; ISIN
code LT0000130023. 

During 2015, a power distribution company LESTO was increasing investment into
modernisation of its electricity distribution network and improving the network
reliability indicators. Furthermore, having improved its efficiency last year,
the Company contributed to achieving more favourable electricity prices in 2016
– the weighted average price for distribution services decreased by more than 1
%. 

In 2015, the net profit of LESTO accounted for EUR 72.5 million. While the net
loss of LESTO in 2014 was reported at EUR 164.6 million, after having adjusted
according to the results of long-term property, plant and equipment value
estimation. 

During 2015, the Company transmitted to its customers 8.529 TWh of electricity,
i.e. 1.6 % more than in 2014. The proceeds from the transmission operations
account for 2/3 of the total income of LESTO. In 2015, the revenue of the power
distribution company LESTO were reported at EUR 581.8 million, by 10.6% down
from 2014. The Company's revenues decreased mostly due to lower electric energy
prices in 2015. 

In 2015, LESTO generated EUR 124.8 million EBITDA (earnings before interest,
taxes, depreciation and amortisation), 3.1 % less than in 2014. In the course
of the period being compared the EBITDA margin increased by 1.65 percentage
points up to 21.46 %. 

Last year, the Company's investment into the network modernisation and
development was reported at EUR 117.6 million, up by 15.9 % as compared to
2014. As compared to 2014, the largest increase, i.e. by 53.1 %, up to EUR 57.1
million, was recorded in the investment in the reconstruction and upgrading of
low voltage network. 

'The consistently increased investment into modernisation of electricity
distribution network enabled the Company to ensure better quality of the
services to the customers. This is also reflected in the improved customer
satisfaction indicator which last year improved by 4 points, and was recorded
at 80. Now having merged the electricity and gas distribution operators and
using smart technologies, we will have a unique possibility to offer to our
customers even more centrally provided services – even more reliable services
able to meet new needs of our customers, a simplified and faster electricity
and gas inlet', says Liudas Liutkevičius, Chairman of the Board and the CEO of
AB Energijos skirstymo operatorius (ESO). 

As compared to the last year in 2015, the system average interruption duration
index (SAIDI) with the impact of force majeure per single customer decreased by
37.51 min to 106.53 min. The system average interruption frequency index taking
into account the force majeure impact (SAIFI) during the period being compared
decreased from 1.29 to 1.06 times. 

The electricity acquisition and related services costs in the course of the
year decreased by 14.8 % to EUR 373.8 million. The largest contributors to the
improvements were lower electricity acquisition at the exchange costs, lower
prices for electricity transmission and systemic services. 

Last year LESTO provided the network access or the power increase service to
28.5 thousand customers, by 7.8 % more than in 2014. The permissible power of
the equipment connected by customers was 386.9 kW, i.e. by 15.2 % higher than
in 2014. For the first time, there were 17.6 thousand customers connected to
the network, i.e. 0.65 % more than in 2014, and the permissible power of the
objects was by 6.73 % higher than in previous years. 

A new company Energijos skirstymo operatorius (ESO) established on the basis of
a power supply and distribution company LESTO and natural gas distribution
company Lietuvos dujos started its operations on 1 January 2016. 


         Communication Unit Manager Lina Rimkutė-Žičkė, tel. (8~5) 2514503

Attachments:

LESTO_2015_Q4_presentation_EN.pdf

LESTO_2015_Q4_EN.pdf