Kauno Energija - Interim information

Activity results of 9 months of the year 2016

The Board of AB Kauno Energija (hereinafter – the Company) (code – 235014830)
assessed results of Company’s business activity of 9 months of the year 2016
and financial state as at 30 September 2016 and approved AB Kauno Energija
consolidated and Company’s non-audited results of 9 months of the year 2016. 

The result of Company’s activities of 9 months of the year 2016 according to
the International Financial Reporting Standards is profit (before taxes) in
amount of EUR 3,584 thousand (result of 9 months of the year 2015 was amounted
to EUR 2,280 thousand), turnover from sales is EUR 39,889 thousand (in 9 months
of the year 2015 it was amounted to EUR 41,856 thousand). The result of
activities of the Group which consists of AB Kauno Energija and its’ subsidiary
UAB Kauno Energija NT (code – 303042623) of 9 months of the year 2016 is profit
(before taxes) in amount of EUR 3,752 thousand (the result of 9 months of the
year 2015 – EUR 2,269 thousand), turnover from sales is amounted to EUR 39,884
thousand (turnover from sales of 9 months of the year 2015 is amounted to EUR
41,851 thousand). 

As at the end of reporting period (30 September 2016) the rate of critical
liquidity of the Company that makes comparison between short term assets
without stocks and short term liabilities, increased from 1.08 to 1.49 during
the period from the end of 2015 (the rate of the Group increased from 1.07 to
2.39). The EBITDA of the Company of 9 months of the year 2016 is EUR 8,830
thousand (EBITDA of 9 months of the year 2015 was EUR 7,415 thousand), and
EBITDA of the Group is EUR 8,980 thousand (EBITDA of 9 months of the year 2015
was EUR 7,417 thousand. 

The main Company’s revenue and profit is generated in 1 and 4 quarters of the
year. Company’s profit of 9 months of the year 2016 is being increased by the
compensation in amount of EUR 1.8 million received from UAB Kauno
Termofikacijos Elektrinė according to the peaceful agreement that has been
signed on 28 December 2015 by which litigation in Arbitration case regarding
noncompliance of Investment Agreement of 30 June 2003 was terminated. 

Company’s turnover from sales of 9 months of the year 2016 in comparison with
the turnover from sales of the same period of the year 2015 is at 4.70 per cent
lower due to the decrease in average heat price at 8.27 per cent (in January –
September of the year 2016 it was 5.21 ct/kWh and in January – September of the
year 2015 it was 5.68 ct/kWh). 

We hereby present an Interim unaudited Financial Statements of 9 months of the
year 2016 together with confirmation of responsible persons.

Attachments:

IFRS KE ENG_sign.pdf