Le finansine dalis iv ketv eng final by "Lietuvos energija", UAB

2014

LIETUVOS ENERGIJA UAB CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 december 2014

Translation note: This condensed interim financial information is a translation from the original, which was prepared in Lithuanian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of this document takes precedence over this translation.

TABLE OF CONTENTS

Condensed interim statement of financial position

Condensed interim statement of profit and loss and other comprehensive income

Condensed interim statement of cash flows

Condensed interim statement of changes in equity

Notes to the condensed interim financial information

Condensed interim statement of financial position (unaudited) as of 31 December 2014 All amounts in LTL thousands unless otherwise stated

Notes

Group 31 Dec 2014

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

ASSETS Non-current assets Intangible assets

52,946

218,066

Property, plant, and equipment

5,566,387

7,318,650

132

129,115

121,626

3,346,893

2,763,355

5,388

28,800

Prepayments for non-current assets Investment property Subsidiaries and other investments

Investments in associates Amounts receivable after one year

828,261

712,888

825,131

690,000

Long-term investments

16,216

57,302

16,216

57,302

Other non-current assets

26,162

17,850

Deferred income tax assets

32,785

1,160

109

6,657,284

8,476,474

4,188,380

3,510,761

Total non-current assets Current assets Inventories

183,043

34,614

32,244

16,292

Trade receivables

450,707

304,437

Other receivables

90,181

85,641

7,259

38,537

1,669

227

Prepayments

Other current assets Prepaid income tax

25,288

10,190

122,385

728,605

558,396

108,235

309,974

1,511,789

1,132,182

115,556

470,906

1,988

618

266

Total current assets

1,513,777

1,132,800

115,822

471,172

TOTAL ASSETS

8,171,061

9,609,274

4,304,202

3,981,933

Short-term investments Cash and cash equivalents Non-current assets held for sale

(continued on the next page)

CONSOLIDATED AND COMPANYâ&#x20AC;&#x2122;S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Notes

Group 31 Dec 2014

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

EQUITY AND LIABILITIES Equity Share capital

4,179,849

4,067,164

4,179,849

4,067,164

Reserves

320,632

1,456,119

255

Retained earnings (deficit)

(193,327)

(87,757)

121,759

(87,060)

Equity attributable to owners of the parent

4,307,154

5,435,526

4,301,863

3,980,104

Non-controlling interest Total equity

183,769

699,228

4,490,923

6,134,754

4,301,863

3,980,104

858,251

805,826

Liabilities Non-current liabilities Non-current borrowings

Finance lease liabilities Grants and subsidies

145

1,051,203

1,091,511

77,644

409,339

29,498

4,588

186,358

189,523

58,908

77,559

2,262,007

2,578,382

Deferred income tax liability Provisions

Deferred income Other non-current amounts payable and liabilities Total non-current liabilities Current liabilities Current portion of long-term debts

447,221

302,656

Current borrowings

46,460

71,562

Current portion of finance lease liabilities Trade payables

375,203

268,561

648

409

Advance amounts received

138,260

69,470

Current income tax liabilities

41,600

7,765

547

33,620

12,437

335,705

163,679

1,065

1,420

1,418,131

896,138

2,260

1,829

Provisions

Other current amounts payable and liabilities Total current liabilities Total liabilities

3,680,138

3,474,520

2,339

1,829

TOTAL EQUITY AND LIABILITIES

8,171,061

9,609,274

4,304,202

3,981,933

The accompanying notes form an integral part of this condensed interim financial information.

Dr. Dalius Misiūnas Chief Executive Officer

Darius Kašauskas

Director of Finance and Treasury

Edita Steponavičienė

UAB “Verslo aptarnavimo centras” operating in accordance with 2015.01.19 order No.V-002

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Condensed interim statement of profit and loss and other comprehensive income (unaudited) for a twelve month period ended 31 December 2014 All amounts in LTL thousands unless otherwise stated

Group Company No- 1 January – 1 September – 1 January – 1 September – 1 January – 1 September – 1 January – 1 September – tes 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2014 2014 2013 2013 2014 2014 2013 2013 Revenue Sales revenue

3,183,647

1,089,977

2,787,167

733,741

191,627

83,600

120,370

34,767

3,375,274

1,173,577

2,907,537

768,508

(1,336,885)

(420,112)

(1,410,414)

(449,102)

(778,889)

(127,303)

(374,164)

(53,533)

Depreciation and amortisation

(448,841)

(112,005)

(470,190)

(110,696)

(14)

(3)

(17)

(4)

Wages and salaries and related expenses

(264,719)

(79,396)

(231,687)

(64,393)

(9,156)

(1,893)

(7,082)

(1,932)

Other operating income Total revenue Operating expenses Purchase of electricity and related services Purchase of gas and fuel oil

Repair and maintenance expenses

(103,321)

(29,556)

(84,194)

(33,670)

(1,848,136)

(1,726,577)

(184,884)

(53,734)

(202,774)

(199,345)

(3,593)

(1,620)

Total operating expenses

(4,780,791)

(2,494,949)

(2,755,533)

(765,128)

(211,944)

(201,241)

(10,692)

(3,556)

Operating profit / (loss)

(1,405,517)

(1,321,372)

152,004

3,380

(211,936)

(201,239)

(10,684)

(3,554)

Other expenses

Negative goodwill on acquisition of Lietuvos Dujos AB

154,203

Share of result of investment under equity method

149,194

Re-measurement of investment under equity method

(97,987)

Finance income

25,361

5,995

20,103

5,344

506,584

5,495

123,983

3,476

Finance costs

(27,015)

(6,634)

(30,219)

(9,169)

(413)

(4)

(1)

(686)

306

(358)

(706)

(1,202,447)

(1,321,705)

141,530

(1,151)

294,235

(195,744)

113,295

(79)

Current year income tax expense

(52,431)

(17,420)

(40,044)

(10,239)

(547)

(480)

Deferred income tax income / (expense)

259,883

213,967

39,333

24,755

(53)

(27)

603

(994,995)

(1,125,158)

140,819

13,365

293,771

(196,277)

113,268

524

Share of results of other associates Profit / (loss) before income tax

Net profit / (loss) for the period

(continued on the next page)

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Attributable to: Owners of the parent Non-controlling interest

(966,170)

(1,091,562)

129,940

12,738

293,771

(196,277)

113,268

524

(28,825)

(33,596)

10,879

627

Other comprehensive income / (loss) Items that will not be reclassified to profit or loss Gain (loss) on revaluation of non-current assets Total items that will not be reclassified to profit or loss

(571,061)

(2,056)

(1,991)

(571,061)

(2,056)

(1,991)

255

Items that will be reclassified to profit or loss Change in fair value of available-for-sale financial assets Total items that will be reclassified to profit or loss Total other comprehensive income / (loss) Total comprehensive income (loss) for the period

255

(570,806)

(571,056)

(2,056)

(1,991)

255

(1,565,801)

(1,696,214)

138,763

11,374

294,026

(196,272)

113,268

524

(1,504,935)

(1,630,577)

127,852

10,471

294,026

(196,272)

113,268

524

(60,866)

(65,637)

10,911

903

Attributable to: Owners of the parent Non-controlling interest

The accompanying notes form an integral part of this condensed interim financial information.

Dr. Dalius Misiūnas Chief Executive Officer

Darius Kašauskas

Director of Finance and Treasury

Edita Steponavičienė

UAB “Verslo aptarnavimo centras” operating in accordance with 2015.01.19 order No.V-002

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Condensed interim statement of cash flows (unaudited) for a twelve month period ended 31 December 2014 All amounts in LTL thousands unless otherwise stated

Group

Company

31 Dec 2014 31 Dec 2013 31 Dec 2014 31 Dec 2013 Cash flows from operating activities Net profit (loss) for the period Adjustments for non-monetary items: Depreciation and amortisation Revaluation of property, plant and equipment Impairment of assets (reversal of impairment) The decrease in investments Share of the results of associates and joint ventures Income tax expense (Depreciation) of grants Increase (decrease) in provisions (Gain) / loss on disposal / write-off of property, plant and equipment Utilization of emission allowances Elimination of results of financing and investing activities: Interest income Interest expense Other finance (income) / costs Changes in working capital: (Increase) decrease in trade receivables and other amounts receivable (Increase) decrease in inventories, prepayments and other current assets Increase (decrease) in amounts payable, deferred income and advance amounts received Income tax (paid) Net cash generate from / (used in) operating activities Cash flows from investing activities (Acquisition) of PP&E and intangible assets Disposal of PP&E and intangible assets Loans (granted), loan repayments received Change in time deposits Acquisition of subsidiaries (associates) Grants received Bonds acquired Bonds disposed Interest received Dividends received Acquisition of LESTO AB shares from minority shareholders Acquisition of Lietuvos Dujos AB shares Other investing cash flows Net cash flows from / (used in) investing activities Cash flows from financing activities Proceeds from borrowings Repayments of borrowings Finance lease payments Interest paid Dividends paid Acquisition of LESTO AB shares from minority shareholders Increase of subsidiaries (associates) owned share Other cash flows from financing activities Net cash flows from / (used in) financing activities Increase (decrease) in cash and cash equivalents (including overdraft) Cash and cash equivalents (including overdraft) at the beginning of the period Cash and cash equivalents (including overdraft) at the end of the period

(994,995)

140,819

293,771

113,268

4,5 5

491,425 748,876 1,091,921 686 (207,452) (42,584) 50,548 13,907 -

511,301 4,205 (4,724) 358 711 (40,796) (402) 12,777 13,895

14 198,200 464 -

17 34 27 -

16 17

(16,205) 24,138 (6,279)

(15,129) 30,041 (4,796)

(16,815) 401 (489,331)

(14,728) (109,255)

(87,240) 121,426

126,572 24,837

(289) (1)

2,115 118

(114,323) (54,756) 1,019,093

100,843 (55,765) 844,747

(37) (13,623)

113 (8,291)

(431,205) 5,528 (99,630) (997) (14,250) 162,581 15,465 6,644 (354,763) (51,908) (762,535)

(452,502) 1,581 23,632 151,295 6,485 (199,583) 170,695 16,205 (282,192)

(12) (100,131) (69,809) 162,581 14,521 489,331 (117,887) (481,357) (102,763)

(5,678) 25,000 147,475 (2,010) (199,583) 170,695 15,346 109,255 260,500

340,650 (140,478) (95) (24,880) (122,025) (117,887) 4,843 (59,872) 196,686

171,074 (191,842) (327) (30,723) (18,544) (1,272) (18) (71,652) 490,903

50,491 (50,491) (401) (84,952) (85,353) (201,739)

252,209

487,688

(3,215)

309,974

57,765

684,374

487,688

108,235

309,974

6 18

The accompanying notes form an integral part of this condensed interim financial information.

Dr. Dalius Misiūnas Chief Executive Officer

Darius Kašauskas

Director of Finance and Treasury

Edita Steponavičienė

UAB “Verslo aptarnavimo centras” operating in accordance with 2015.01.19 order No.V-002

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Condensed interim statement of changes in equity (unaudited) for a twelve month period ended 31 December 2014 All amounts in LTL thousands unless otherwise stated Group

Notes

Balance at 1 January 2013 (restated) Revaluation of property, plant and equipment, net of deferred income tax effects Total other comprehensive income (loss) for the period Net profit (loss) for the period (restated) Total comprehensive income (loss) for the period Transfer of revaluation reserve to retained earnings (transfer of depreciation, net of deferred income tax) Transfer to reserves and movement in reserves Dividends Acquisition of UAB LITGAS Changes in non-controlling interest on the group‘s restructuring Balance at 31 December 2013 Balance at 1 January 2014 Revaluation of property, plant, equipment and intangible assets, net of deferred income tax effects Change in fair value of available-for-sale financial assets, net of deferred income tax effects Total other comprehensive income (loss) for the period Net profit (loss) for the period Total comprehensive income (loss) for the period Transfer of revaluation reserve to retained earnings (transfer of depreciation, net of deferred income tax) Transfer to reserves and movement in reserves Dividends Increase in share capital Changes due to group‘s restructuring Changes in non-controlling interest on the group‘s restructuring Balance at 31 December 2014

Equity attributable to owners of the Group Share capital 4,067,164 -

Legal Revaluation Other reserve reserve reserves 75,467 802,934 689,922 (2,088) (2,088) (2,088) -

Retained earnings (325,520) 129,940 129,940

Subtotal

Noncontrolling interest

Total

5,309,967 (2,088) (2,088) 129,940 127,852

711,864 32 32 10,879 10,911

6,021,831 (2,056) (2,056) 140,819 138,763

4,067,164

1,595 12 77,074

(73,434) - (38,453) 164 727,576 651,469

73,434 36,858 (307) (2,162) (87,757)

(307) (1,986) 5,435,526

(18,818) 1,307 (6,036) 699,228

(18,818) 1,000 (8,022) 6,134,754

4,067,164

77,074

727,576

651,469

(87,757)

5,435,526

699,228

6,134,754

(539,020)

(32,041)

(571,061)

(539,020) (539,020)

255 255 255

11 112,685 6 18 4,179,849

1,250 5,792 84,116

(49,272) - (651,556) 97,071 (7) 236,355 161

255 - (538,765) (966,170) (966,170) (966,170) (1,504,935)

255 (32,041) (570,806) (28,825) (994,995) (60,866) (1,565,801)

49,272 650,306 228,510 (193,327)

(36,690) (445,665) 27,762 183,769

112,685 331,667 4,307,154

(36,690) 112,685 (114,299) 27,762 4,490,923

(continued on the next page)

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

NoShare capital tes 4,067,164 4,067,164

Company Balance at 1 January 2013 Net profit (loss) for the period Balance at 31 December 2013 Balance at 1 January 2014 Increase in share capital Change in fair value of available-for-sale financial assets, net of deferred income tax effects Net profit (loss) for the period Dividends Balance at 31 December 2014

4,067,164 112,685 4,179,849

Legal reserve

Other reserves

Retained earnings

Total

(200,328) 113,268 (87,060)

3,866,836 113,268 3,980,104

255 255

(87,060) 293,771 (84,952) 121,759

3,980,104 112,685 255 293,771 (84,952) 4,301,863

The accompanying notes form an integral part of this condensed interim financial information.

Dr. Dalius Misiūnas Chief Executive Officer

Darius Kašauskas

Director of Finance and Treasury

Edita Steponavičienė

UAB “Verslo aptarnavimo centras” operating in accordance with 2015.01.19 order No.V-002

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Notes to condensed interim financial information (unaudited) for a twelve month period ended 31 December 2014 All amounts in LTL thousands unless otherwise stated

General information

This financial information contains unaudited condensed interim financial information of Lietuvos Energija UAB (hereinafter referred to as “the Company”) and its subsidiaries (hereinafter collectively referred to as “the Group”) for a twelve-month period ended 31 December 2014 (hereinafter referred to as “the financial information” or “the interim financial information”). Lietuvos Energija UAB is a private limited liability company registered in the Republic of Lithuania. The address of the Company’s registered office is Žvejų g. 14, LT-09310, Vilnius, Lithuania. The Company is a limited liability profit-seeking entity registered on 28 August 2008 with the Register of Legal Entities managed by the public institution the Centre of Registers. The Company’s code 301844044, VAT payer’s code LT10004278519. The Company has been established for an unlimited period. Lietuvos Energija UAB is a parent company, which is responsible for the management and coordination of activities of the Group companies engaged in electric power and heat production and supply, electric power import

and export, distribution and trade, natural gas distribution and supply, as well as in service and development of electric energy industry. The Company analyses the activities of the Group companies, represents the whole group, implements its shareholders‘ rights and obligations, defines operation guidelines and rules, and coordinates the activities in the fields of finance, law, strategy and development, human resources, risk management, audit, technology, communication and other. Lietuvos Energija UAB seeks to ensure effective operation of the Group companies, implementation of goals related to the Group’s activities set forth in the National Energetic Independence Strategy and other legal acts, ensuring that it builds a sustainable value in a socially responsible manner. The Company is wholly owned by the Government of the Republic of Lithuania.

31 December 2014 Company’s shareholder Share capital Republic of Lithuania represented by the Lithuanian Ministry of Finance

4,179,849

31 December 2013

Ownership interest, % 100.00

Share capital 4,067,164

Ownership interest, % 100.00

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

The Group consists of Lietuvos Energija UAB and subsidiaries directly or indirectly controlled by the Company: Company name

Registered office address

Effective ownership interest at 31 December 2014, %

Share capital (‘000 LTL) at 31 December 2014

Profile of activities

Lietuvos Energijos Gamyba AB

Elektrinės g. 21, Elektrėnai

96.1

635,084

Electricity generation, supply, import, export and trade

LESTO AB

Žvejų g. 14, Vilnius

94.4

603,945

Electricity supply and distribution to end users

Lietuvos Dujos AB

Aguonų g. 24, Vilnius

96.6

290,686

Supply and distribution of natural gas to end users

NT Valdos UAB

Geologų g. 16, Vilnius

94.7

295,408

Operation of real estate, other related activities and provision of services

Duomenų Logistikos Centras UAB

A. Juozapavičiaus g. 13, Vilnius

79.6

13,907

Maintenance of information technologies and telecommunications

ELEKTROS TINKLO PASLAUGOS UAB

Motorų g. 2, Vilnius

94.4

Construction, repair and maintenance 18,904 of grid and related equipment, connection of customers to the grid

Kauno Energetikos Remontas UAB

Chemijos g. 17, Kaunas

96.1

15,244

Repairs of energy equipment, production of metal structures

LITGAS UAB

Gedimino pr. 33-2, Vilnius

66.7

45,000

Supply of liquid natural gas via terminal and trade in natural gas

Gotlitas UAB

Chemijos g. 17, Kaunas

96.1

Energijos Tiekimas UAB

Jeruzalės g. 21, Vilnius

96.1

750

Public Institution Centre of Training for Energy Specialists (up to October 2014, Public Institution Republican Centre of Training for Energy Specialists)

Jeruzalės g. 21, Vilnius

100

Professional development and 294 continuing training of energy specialists

Geton Energy OÜ

Narva mnt 5, 10117 Tallinn

96.1

121 Supply of electric power

Geton Energy SIA

Bezdelingu 12, LV-1048, Riga

96.1

99 Supply of electric power

Technologijų ir Inovacijų Centras UAB

A. Juozapavičiaus g. 13, Vilnius

97.8

22,201

VAE SPB UAB

Žvejų g. 14, Vilnius

100

1,010

Business consultations and other management activities

Verslo aptarnavimo centras UAB (up to 31 December 2014, paid-up capital 1,891 thousands LTL)

P. Lukšio g. 5 b, Vilnius

97.0

2,000

Provision of public procurement, accounting and HR services

Lietuvos dujų tiekimas UAB

Aguonų g. 24, Vilnius

100

3,000 Supply of gas

Lietuvos energijos paramos fondas

Žvejų g. 14, Vilnius

100

As of 31 December 2014, the Group had 5,602 employees (31 December 2013: 4,378) and the Company had 61 employees (31 December 2013: 53).

1,100 Accommodation services, trade

Supply of electric power and natural gas

Provision of IT, telecommunication and other services

Assistance in significant to the public projects, initiatives and activities

The management of Lietuvos Energija UAB approved this financial information on 27 February 2015.

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Summary of significant accounting policies

This condensed interim financial information for a twelvemonth period ended 31 December 2014 has been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. For a better understanding of data contained in the condensed interim financial information, this financial information should be read in conjunction with the consolidated and the Company’s financial statements for the year ended 31 December 2013, which were prepared in accordance with International Financial Reporting Standards as adopted by the EU. The accounting policies applied in the preparation of this condensed interim financial information are consistent with those of the annual financial statements for the year ended 31 December 2013. Income tax

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognised and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in the income statement. Minority interest in the acquiree is initially recognised at the minority interest‘s proportionate share of the recognised amounts of net assets, liabilities and contingent liabilities. Changes in ownership interests in subsidiaries without change of control

Accounting policies applied to significant transactions within the Group in relation to the Group‘s restructuring are set out below (as described in Notes 6 and 19).

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is, as transactions with the owners in their capacity as owners. The difference between the fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

Business combinations

New standards, amendments and interpretations

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The newly issued standards, amendments and interpretations that are effective from 1 January 2014 have been presented in the Company‘s and the Group‘s audited financial statements for the year ended 31 December 2013. The newly issued standards, amendments and interpretations that are effective from 1 January 2014 and relevant for the Company‘s and the Group‘s condensed interim financial information for a twelve-month period ended 31 December 2014 are set out below.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.

IFRS 3 Business Combinations is not applied to business combinations involving entities under common control, therefore, for the purpose of this financial information business combinations involving entities under common control were accounted for using the ‘pooling of interest’ method. Acquisition method is applied to account for acquisition of subsidiaries that are not part of the Company‘s group. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred in a bargain purchase, the equity interests issued, and the liabilities assumed at the bargain purchase date. Acquisition-related costs are expensed as incurred. Identifiable net assets, liabilities and contingent liabilities acquired in the acquiree, which meet IFRS 3 Business Combinations criteria, are recognised at their fair values at the acquisition date.

IFRS 10 Consolidated financial statements (issued in May 2011). IFRS 10 changes the definition of control so that the same criteria are applied to all entities to determine control. This definition is supported by extensive application guidance. This standard had no impact on the measurement of transactions and balances in the Group’s consolidated financial information. IFRS 11 Joint arrangements (issued in May 2011). Changes in the definitions have reduced the number of types of joint arrangements to two: joint operations and joint ventures. The existing policy choice of proportionate consolidation for jointly controlled entities has been eliminated. Equity accounting is mandatory for participants in joint ventures. This standard had no

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

impact on the measurement of transactions and balances; the Group applied this standard to the transactions conducted during 2014. IFRS 12 Disclosure of interest in other entities (issued in May 2011). This standard applies to entities that have an interest in a subsidiary, a joint arrangement, an associate or an unconsolidated structured entity. IFRS 12 sets out the required disclosures for entities reporting under the two new standards: IFRS 10 Consolidated financial statements and IFRS 11 Joint arrangements. This standard had no impact on the measurement of transactions and balances; the Company and the Group considered the requirements of this standard when making disclosures in this financial information. IAS 27 Separate financial statements (revised in May 2011). Its objective is to prescribe the accounting and disclosure requirements for investments in sub-

sidiaries, joint ventures and associates when an entity prepares separate financial statements. The guidance on control and consolidated financial statements was replaced by IFRS 10 Consolidated financial statements. This standard had no impact on the measurement of transactions and balances; the Company and the Group considered the requirements of this standard when making disclosures in this financial information. IAS 28 Investments in associates and joint ventures (revised in May 2011). The amendment of IAS 28 supplemented IAS 28 with the requirement to account for joint ventures using the equity method, because this method is applicable to both, joint ventures and associates. Save for this, other guidelines remained unchanged. The Group / Company is currently assessing the impact of this standard on its financial statements. The Group applied this standard to the transactions conducted during 2014.

Critical accounting estimates and judgements used in the preparation of the financial statements

Accounting estimates and judgments are continuously reviewed and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The preparation of financial information according to International Financial Reporting Standards as adopted by the EU requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses, and disclosures of contingencies. Changes in the underlying assumptions, estimates and judgements may have a material effect on this financial information. The accounting estimates applied in preparing the condensed interim financial information are consistent with those used in preparing the annual financial statements for the year ended 31 December 2013. Revaluation and impairment of assets The Group accounts for property, plant and equipment (except for the assets of power plants, gas distribution pipelines and gas technological equipment) at revalued amount in accordance with International Accounting Standard 16 Property, plant and equipment. The previous version of the Lithuanian Law on Electricity effective as at 31 December 2008 stipulated that the price caps for electricity transmission services were determined based on the value of assets used in licensed activities of the service provider, with the value of such assets established with reference to data reported in the service provider’s financial statements (Regulated Assets Base).

According to the amendment to the above-mentioned Law effective from 1 June 2009, the price caps for electricity transmission services are to be determined based on the value of assets used in licensed activities of the service provider, with the value of such assets being estimated and approved by the National Control Commission for Prices and Energy (hereinafter referred to as “NCCPE”) in accordance with the principles for determination of the value of assets used in licensed activities of the service provider that had been drafted by the Commission and approved by the Government. According to the Government’s Resolution No. 1026 of 24 September 2014 On approval of principles for determination of the state regulated prices in the electricity sector, were approved principles for determination of the state regulated prices in the electricity sector. In addition, in 15 January 2015 NCCPE approved new methodology of regulation (hereinafter referred to as “The methodology”). The methodology was prepared in accordance with methodical guidelines for forming Longrun Average Incremental Costs (LRAIC) accounting model (NCCPE resolution no. O3-287 of 5 July 2013), guidelines for technical-technological and economical model for the grid (NCCPE resolution no.O3-755 of 27 December 2013). In accordance with The methodology, 19 January 2015 NCCPE has established the price caps for AB LESTO distribution facilities in average and low voltage grid for 2016-2020.

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

For the above-mentioned reason and in accordance with International Accounting Standard 16 article 31 and International Accounting Standard 36 article 9 requirements, i.e. to set fair value in financial reports recorded property, plant and equipment, was carried out AB LESTO assets evaluation, as required in International Valuation and Accounting Standards. Revaluation of assets As at 31 December 2014, independent valuation of assets was performed at the Group in respect of NT Valdos UAB (buildings, structures and vehicles), AB LESTO and AB Lietuvos dujos (buildings, structures and vehicles). The valuation was carried out by independent valuation companies and valuation specialists of the Group. As at 31 December 2013, independent valuation of assets was performed at the Group in respect of Lietuvos Energijos Gamyba AB (assets carried at revalued amount), ELEKTROS TINKLO PASLAUGOS UAB and NT Valdos UAB (buildings and structures). The valuation was carried out by independent valuation companies. As at 31 December 2012, independent valuation of assets was performed at the Group in respect of NT Valdos UAB. The valuation was carried out by independent valuation company and the Group’s internal valuation experts. As at 31 December 2011, valuation of property, plant and equipment in respect of Kauno Energetikos Remontas UAB was performed using the comparable price and income methods. In 2010, independent property valuers carried out revaluation of non-current assets transferred as in-kind contribution to the formation of the share capital of Technologijų ir Inovacijų Centras UAB, Duomenų Logistikos Centras UAB and NT Valdos UAB. In 2013, Duomenų Logistikos Centras UAB and NT Valdos UAB performed valuation of selected items of assets and determined that there was no significant difference between the carrying amount and the fair value of property, plant and equipment. Considering the date of the last revaluation of these assets and the periods of their acquisition, in the opinion of the management, the fair value of the Group’s property, plant and equipment stated at revalued amounts as at 31 December 2014 did not differ significantly from their carrying amount. Revaluation of LESTO AB assets In accordance with valuation report of property, plants and equipment written by independent valuation company, AB LESTO performed valuation of property, plants and equipment and has established the fair value of property, plants and equipment (construction in progress included) at 31 December 2014 consisting of LTL 2.357 B., in LTL 2.135 B

less then book value of property, plants and equipment at 31 December 2014 consisting of LTL 4.492 B. Income and costs valuation methods were used valuating AB LESTO property, plant and equipment by fair value. Valuation of assets was performed in stages: (i) setting replacement cost new value, (ii) determination of physical and functional depreciation of assets, (iii) performed valuation of possibilities in recouping of assets (income method). The fair value was used as value standard / assumption in valuation, as it is established in 13 IFAS. Regulation and its effect on recouping of assets were taken into account valuating economical depreciation. The fundamental assumptions of the business plan, used in calculation of economical depreciation of assets, were: • 15 January 2015 NCCPE approved new regulation methodology, which the management of the Group took into account while preparing business plan for 10 year period. The methodology was prepared in accordance with methodical guidelines for forming LRAIC accounting model (NCCPE resolution no. O3287 of 5 July 2013), guidelines for technical-technological and economical model for the grid (NCCPE resolution no.O3-755 of 27 December 2013). • Assumptions related with calculation of regulated assets base (RAB) were set in accordance to the Government’s Resolution No. 1026 of 24 September 2014 On approval of principles for determination of the state regulated prices in the electricity sector, which is not provided in new regulation methodology, but these assumptions were included in financial prognosis, with estimated 50% probability. In accordance with above mentioned Resolution, additional RAB component is calculated as a difference between assets book value and regulated assets base, appeared 30 June 2014. Additional RAB is used only in calculation of RAB return (i.e. admissible depreciation calculated from RAB without additional component) in particular period. • Discount rate (WACC) was set using capital asset pricing model (CAPM). Received WACC (after taxation) amount is equal 6.38 % (or 7.5 % before taxation), which was used for discounting till current value. • In forecasted period RAB will continually grow because of large capital investment in particular periods (2015-2024) and reach LTL 4.782 B. in 2024. Impairment of assets The Group makes an assessment, at least annually, whether there are any indications that the carrying amount of property, plant and equipment has been impaired. As of 31 December 2014 and 31 December 2013, the impairment test was performed for the property, plant and equipment of the Reserve Power Plant and Combined Cycle Block (classified in the category of assets of pow-

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

er plants), and it was determined that the recoverable amount of the assets of power plants exceeded their carrying amount of LTL 2.066 M (31 December 2013: LTL 2.090 M), and consequently, no impairment was recognised thereon. Valuation of investments in subsidiaries Although the shares of the Company’s subsidiaries LESTO AB and Lietuvos Energijos Gamyba AB are traded on Vilnius Stock Exchange, the Group‘s management believes this market is not active enough so that the quoted stock prices could be treated as equivalent to the fair value of investments in subsidiaries at the reporting date. 31 December 2014 the Company performed impairment test of investment in its subsidiary LESTO AB and accounted LTL 198.2 M impairment. Impairment test was performed in accordance with assumptions of long time forecasts used in note “Revaluation of LESTO AB assets”, in addition adjusting cash flows due to development prospects of LESTO AB as a company (i.e. value generated not only from property, plants and equipment). Discounted cash flows were adjusted estimating net financial debt and investment in subsidiaries. As of 31 December 2013, the Company‘s management performed the impairment test and determined no impairment in respect of the investment in subsidiary Lietuvos Energijos Gamyba AB. The Company‘s management believed there were no indications of impairment of the investment in Lietuvos Energijos Gamyba AB as of 31 December 2014. As of 31 December 2014, the Company carried out valuation/impairment test in respect of its investment in subsidiary Lietuvos Dujos AB using the discounted cash flow method. Discounted cash flows were estimated in line with the effective legal acts and methods regulating distribution activities. Discounted cash flows were calculated using a pre-tax discount rate of 7.09 %, which is consistent with the rate of return used by NCCPE in regulation of prices. Based on the analysis, the Company‘s management determined that there was no impairment of the investment in Lietuvos Dujos AB as of 31 December 2014. Cost of LITGRID AB disposal For the purpose of implementing the provisions of the Law on Electricity, on 4 July 2012 the Lithuanian Government adopted Resolution No 826 On the establishment of a private limited liability company and investment of state-owned capital, based on which the Ministry of Energy was assigned to establish a private limited liability company and adopt all the decisions necessary for the transfer of shares of LITGRID AB owned by Lietuvos Energija UAB to the newly established private limited liability company EPSO-G UAB in return for a consideration based on the market value of shares determined by independent valuers.

For the purpose of implementing the above-mentioned Resolution of the Lithuanian Government, the management initiated an independent valuation of the Company‘s shares held in LITGRID AB – an electricity transmission system operator controlled by the Company. The independent valuers determined the market value for 97.5 % shares held in LITGRID AB using the income approach. In LITGRID AB shares purchase and sale agreement there is provided final price premium, which proportion depends from regulatory environment in future periods. 24 September 2014 Government approved principles for determination of the state regulated prices in the electricity sector, 15 January 2015 NCCPE approved new regulation methodology (LRAIC). 19 January 2015 NCCPE approved LITGRID AB price caps for transmission services in high voltage grid for 2016-2020. According to above-mentioned changes, the Company performed price premium valuation and determined that according to LITGRID AB shares purchase and sale agreement price premium value is unchanged as of 31 December 2014. Impairment of goodwill and intangible assets not subject to amortisation The consolidated financial information includes goodwill and licences with indefinite useful life that arose on acquisition of VST AB in 2008. 31 December 2014 the Group performed impairment test of goodwill and intangible assets not subject to amortisation and write off whole goodwill value equal LTL178 M. In appreciation of the fact, that from 2011, AB “VST” licences with unlimited useful life not offered for the Group any economic benefits, the Group retrospectively write off above-mentioned licences in value of LTL 118 M. Useful lives of property, plant and equipment The estimation of the useful lives of items of property, plant and equipment is a matter of judgment based on the experience with similar assets. The economic benefits embodied in the assets are consumed principally through their use. However, other factors, such as technical or commercial obsolescence, often result in the diminution of the economic benefits embodied in the assets. Management assesses the remaining useful lives in accordance with the current technical conditions of the assets and estimated period during which the assets are expected to earn benefits for the Group. The following key factors are considered: (a) expected usage of the assets; (b) expected physical wear and tear, which depends on operational factors and maintenance programme; and (c) technical or commercial obsolescence arising from changes in market conditions.

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Accrued revenue Revenue received from private customers is recognised based on the payments received, therefore, at the end of each reporting period the amount of revenue earned but not yet paid by private customers is estimated and accrued by the management of the Group. Accrued revenue is estimated as 1/3 of total payments for electricity received in the last month of the reporting period. The accrued revenue is based on past experience and average term of payment by customers for electricity. The management has estimated that the majority of private customers declare and make payment for the electricity consumed on approx. the 20th day of the month, while electricity is supplied for a full month (30 or 31 days). Consequently, the volume of electricity consumed over the remaining 10 days is estimated proportionally based on the volume of electricity provided to the electricity supply network during the whole month (the actually known variable) and the total volume of electricity declared by private customers during December, and the resulting difference multiplied by the average rate per 1 kWh. Accounting for customer connection fees Before 1 July 2009, the Group used to defer income received from new customer connections to the grid and recognise it as deferred income over the period of 31 years, which is the average useful life of electricity equipment constructed by the Group upon connection of new customers. The management of the Group believes that the period of provision of services to customers is indefinite, therefore, the average useful life of electricity equipment constructed by the Group upon connection of new customers was used as the best estimate of the period over which connection fees paid customers were recognised as income. With effect from 1 July 2009 and based on IFRIC 18 interpretation, the newly connected customers to the grid do not obtain any additional future benefits as compared to all the remaining customers, consequently, the provision of connection service is treated as completed and income from connection is recognised upon the connection of a new customer. Impairment of amounts receivable Impairment losses for amounts receivables are determined based on the management’s estimates on recoverability and timing relating to the amounts that will not be collectable according to the original terms of receivables. This determination requires significant judgement. Judgement is exercised based on significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments. Current estimates of the management could change significantly as a result of change in situation in the market and the economy as a whole.

Recoverability rate also highly depends on success rate and actions employed relating to recovery of significantly overdue amounts receivable. Amounts receivable are assessed to determine their value and impairment individually or collectively in a group of similar receivables. In case of individually assessed receivables for impairment, the Group takes into account the available or accessible data from external sources of information on market trends and forecasts, the possible credit enhancements (collateral) provided for receivables and events providing evidence of impairment of receivables such as, for example, fulfilment of contractual terms, the borrower‘s actual performance, etc. In case of collectively assessed receivables for impairment, the Group takes into account the historical statistics, and reviews annually whether the provisioning rates used for collectively assessed receivables are in line with the historical data of impairment of receivables, and that the provisioning rates used for collectively assessed receivables are approved for the upcoming year. Tax audits The tax authorities may at any time inspect the books and records within 5 years subsequent to the reported tax year, and may assess additional tax amounts and penalties. The Group’s management is not aware of any circumstances that might result in a potential material liability in this respect. Amortisation rates of licences Indefinite useful lives were established for the licences of distribution system operator and public supply services that were acquired on a business combination in 2008, because the validity term of these licences can be extended at no significant efforts or costs. Provision for utilisation of emission allowances The Group estimates provision for utilisation of emission allowances based on actual emissions over the reporting period multiplied by the market price for one unit of emission allowances. Actual emissions are approved by a relevant regulating state over the period of 4 months after the year end. Based on its past experience, the Group’s management does not expect any significant differences between the estimated provisions as at 31 December 2014 and the emissions that will be approved for 2015. Accrual of PSO service fees The variable part of PSO service fees is estimated with reference to variable costs incurred during the reporting period. The producers ensuring the security of electric power supply and reserves of energy system, submit their PSO service fee estimates to the National Commission for

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Control of Prices and Energy, which include breakdown of variable electric power production costs – natural gas, heavy fuel oil, emission allowance costs and costs for reagent desulphurisation. The variable part of PSO service fees for the upcoming calendar year is estimated with reference to the expected variable costs to be incurred in the production of the approved quota of electricity to be compensated. Fair value of financial assets and financial liabilities The Group‘s and the Company‘s underlying financial assets and liabilities not measured at fair value include trade and other amounts receivable, trade and other amounts payable, non-current and current borrowings. The fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the

measurement date. The fair value of financial assets and financial liabilities is not lower than the amount payable on demand, which is discounted starting from the first day on which its payment may be demanded. The carrying amount of cash and cash equivalents, current trade and other amounts receivable, current trade and other amounts payable and current borrowings approximates their fair value. The fair value of non-current borrowings is determined with reference to the market price of loans of the same or similar nature or interest rates payable at that time on similar maturity debts. The fair value of non-current borrowings with variable interest approximates their carrying amount in cases when margins payable on such loans are consistent with loan margins currently available in the market.

Non-current intangible assets Group

Net book amount at 1 January 2013 Additions Revaluation Reclassified from / to PP&E Write-off / emission allowances utilised Disposals

Patents and licences

Computer software

Emission allowances

Other intangible assets

Goodwill

Total

922

6,587

55,413

2,677

178,103

243,702

367

1,221

4,954

6,559 (9,994)

(9,994)

653

3,403

(3,333)

723

(4)

(13,895)

(6)

(13,905)

(4,041)

(762)

(4,148)

(68)

(4,978)

Net book amount at 31 December 2013

830

6,205

28,704

4,224

178,103

218,066

Net book amount at 1 January 2014

830

6,205

28,704

4,224

178,103

218,066

Acquisition of Lietuvos Dujos AB

1,079

1,084

2,164

Additions

4,017

919

2,384

7,320

101

6,796

(5,644)

1,253

(1)

(10,042)

(178,103)

(188,145)

Amortisation charge

Reclassified from / to PP&E Write-off / emission allowances utilised Disposals

(260)

(13)

(273)

Revaluation of emission allowances

9,662

Emission allowances grant received

8,039

Amortisation charge Net book amount at 31 December 2014

(1,345)

(3,692)

(102)

(5,139)

4,681

11,052

36,363

850

52,946

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Property, plant and equipment

Group

Land

Buildings

Gas distriStructubution res and pipelimachines and nery equipment

Net book amount at 6,190 383,536 4,228,702 1 January 2013 Additions 241 4,113 Revaluation 753 3,249 (5,597) Disposals (43) (112) Write-offs (179) (12,324) Reclassifications from / to 4,407 289,004 Reclassified to assets, intangible assets (1) Reclassification to assets for trade Reclassified to investment property - (6,327) (34) Reclassified from / to inventories 867 (6) Impairment - (4,603) (1,025) Reversal of impairment 70 20 Depreciation charge - (19,663) (338,358) Net book amount at 6,943 361,555 4,164,382 31 December 2013

Gas technological Assets Motor equip- of power vehiment plants cles and facilities

Net book amount at 1 January 2013 Impairment

Total

- 2,664,957 50,268 102,222 73,361 7,509,236 1,214 10,851 4,815 316,006 337,240 581 (32) (1,046) (166) (565) (266) (1,152) (4,401) (1) (66) (433) (17,404) 11,021 8,620 (313,052) -

(9) 6,572 (38) (2) 4,668 - (116,763) (7,037) (24,502)

(723) (1,296) (34) -

- 2,567,102 54,059

90,780

73,829 7,318,650

- 2,567,102 54,059 14,970 - 8,846 1,114 16,600 (90) (477) (1,761) (27) (2) -

90,780 18,429 15,820 (869) (81)

73,829 7,318,650 3,663 449,439 454,829 494,133 (477) (5,324) (175) (14,386)

11 1,790

(723) (10) (7,657) 7,433 (5,702) 4,758 (506,323)

(39,571) (1,209) (32,591) - (2,183,460) 7,724 - 16,483 (406,737) -

1,170 (7) - (1,452) (735) (114,887) (9,843) (26,419) 15,941 2,422,173 65,239

Other PP&E

Additions

Construction in progress

Net book amount at 6,943 361,555 4,164,382 1 January 2014 Acquisition of Lietuvos Dujos AB 1 36,309 4,184 363,037 Additions 683 4,207 880 Disposals - (1,578) (549) Write-offs (279) (13,365) (457) Valuation results - (143,167) (1,936,730) (30,203) (revaluation, impairment) Reclassifications from / to 5,886 354,242 20,612 Reclassified to assets, - (6,884) intangible assets Reclassified to investment property (24) Reclassified to assets for trade Depreciation charge - (21,446) (312,335) 1,720 Net book amount at 6,944 231,079 2,264,012 355,589 31 December 2014 Company

Other PP&E

(1,462) -

(8,346) 1,139 (1,452) (483,945)

81,484 123,947 5,566,387

Construction in progress

Total

(34)

(17)

Net book amount at 31 December 2013

Net book amount at 1 January 2014

Depreciation charge

Additions Depreciation charge Net book amount at 30 September 2014

As of 2014 and 2013, the Group accounted for its property, plant and equipment (except for gas distribution pipelines and equipment, assets of hydro power plant,

(14)

pumped storage power plant, combined cycle block and reserve power plant) at revalued amount.

CONSOLIDATED AND COMPANYâ&#x20AC;&#x2122;S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Subsidiaries and other investments

During the first half of 2014, the Company acquired 96.64 % shares of Lietuvos Dujos AB. These shares were acquired in three stages: • On 21 February 2014, the Ministry of Finance made an in-kind contribution of state-owned 51,454,638 (17.7 %) shares of Lietuvos Dujos AB amounting to LTL 112,685,657 (Note 12) in order to increase the Company‘s share capital. • On 21 May 2014, the Company and the German concern E.ON Ruhrgas International signed an agreement, based on which the Company acquired 113,118,140 (38.9 %) shares of Lietuvos Dujos AB. The acquisition cost of shares amounted to LTL 219,008,617. • On 19 June 2014, in line with Article 31 of the Lithuanian Law on Securities the Company announced a mandatory non-competitive takeover bid to buy up the remaining shares of Lietuvos Dujos AB, and from the Russian company Gazprom and minority shareholders the Company acquired 116,357,288 (40.03 %) of shares. The acquisition cost of shares amounted to LTL 262,348,264. On 21 May 2014, the Company and the German concern E.ON Ruhrgas International signed an agreement, under which the Company acquired 71,040,473 (11.76 %) shares of LESTO AB. The acquisition cost of shares amounted to LTL 117,886,772. 2014 Carrying amount of non-controlling interest acquired Consideration paid to non-controlling interest Profit attributable to owners of the parent, recognised in equity

419,491 (117,887) 301,604

On 31 March 2014, the Company signed agreements for purchase / sale of shares with LESTO AB and Lietuvos Energijos Gamyba AB, under which the Company acquired 78.98 %, i.e. 46,525,904 shares of Duomenų Logistikos Centras UAB. The acquisition cost of shares amounted to LTL 60,431,742. Following this transaction, the Company owns 79.64 % shares of Duomenų Logistikos Centras UAB. On 17 July 2014, the share capital of Duomenų Logistikos Centras UAB was reduced to make payments to shareholders. Before reduction of share capital, the Company held 46,910,850 shares, and following annulment of 35,836,194 shares the Company held the remaining 11,074,656 shares. On 31 July 2014, Duomenų Logistikos Centras UAB paid LTL 30 million to the Company. The Company paid the remaining amount 5,836,194 LTL in August. On 10 July 2014, the share capital of Technologijų ir Inovacijų Centras UAB was increased by LTL 19,990,000. The Company acquired 11,105,556 shares, which were paid in

May 2014 as additional cash contribution. Nominal value per share is equal to LTL 1. Payment for the shares was conducted as follows: amount of LTL 8,105,556 was paid as cash contribution, whereas amount of LTL 3,000,000 was offset against the loan repayable by Technologijų ir Inovacijų Centras UAB. On 11 July 2014, the Company‘s amounts receivable decreased, whereas investments in subsidiaries increased by LTL 11 million, respectively. Following this transaction, the Company owns 97,89 % shares of Technologijų ir Inovacijų Centras UAB. On 12 December 2014 in General Shareholders Meeting of Technologijų ir Inovacijų Centras UAB a decision was made to increase the share capital with ordinary registered shares in value LTL 2,200,525, nominal value per share is equal to LTL 1. Following this transaction, the Company owns 97.80 % shares of Technologijų ir Inovacijų Centras UAB. On 21 July 2014, the Company and other Group companies signed a memorandum in the establishment of Verslo Aptarnavimo Centras UAB. The purpose of the newly established company is to provide the Company‘s shareholders – the contracting authorities – with the services necessary to ensure operations of the Company‘s shareholders – the contracting authorities (to satisfy the needs and fulfil the functions of shareholders – the contracting authorities). The newly established company was registered with the Register of Legal Entities on 30 July 2014, and its authorised share capital amounts to LTL 100,000. The Company acquired 50 % of its shares. 28 October 2014 in General Shareholders Meeting of Verslo Aptarnavimo Centras UAB a decision was made to increase the share capital with ordinary registered shares in value LTL 1,400,000, nominal value per share is equal to LTL 1. The Company acquired 700,000 of newly issued shares and after this transaction owns 96.33 % shares of Verslo Aptarnavimo Centras UAB. 12 December 2014 in General Shareholders Meeting of Verslo Aptarnavimo Centras UAB a decision was made to increase the share capital with ordinary registered shares in value LTL 500,000, nominal value per share is equal to LTL 1. The Company acquired 270,000 newly issued shares and after this transaction owns 97 % shares of Verslo Aptarnavimo Centras UAB. During the General Shareholders‘ Meeting of LITGAS UAB held on 27 June 2014, a decision was made to increase the share capital of LITGAS UAB by additional contributions of shareholders from LTL 3 million up to LTL 45 million, by issuing new ordinary registered shares with the nominal value of LTL 1 each and total value of LTL 42 million. On 8 July 2014, the Company and LITGAS UAB signed the Agreement for Purchase of Shares, under which the Company is to acquire newly issued shares of LITGAS UAB with the total value of LTL 28 million. Following the transaction, the Company‘s shareholding in LITGAS UAB will amount to LTL 30 million, and the Company owns 66.7 % shares of LITGAS UAB.

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

tal in amount of LTL 1,000,000 with issuing 1,000,000 new ordinary registered shares with nominal value per share equal to LTL 1. UAB “VAE SPB” share capital increases from LTL 10,000 up to LTL 1,010,000.

On 21 July 2014, the Board of Lietuvos Dujos AB approved the separation of the Company‘s distribution and supply activities, whereby Lietuvos Dujos AB is to sell part of its business, i.e. natural gas supply business together with the accompanying assets, rights and obligations. On 28 August 2014, the Company signed the memorandum in the establishment of Lietuvos dujų tiekimas UAB, as the new company, which is in charge in gas supply. The Company is the promoter and shareholder of Lietuvos dujų tiekimas UAB. Lietuvos dujų tiekimas UAB was registered on 2 September 2014. Lietuvos dujų tiekimas UAB authorised share capital amounts up to LTL 3 000 000. The Company acquired all newly issued shares and owns 100 % shares of Lietuvos dujų tiekimas UAB.

17 November 2014 in shareholders meeting a decision was made to increase UAB “Kauno energetikos remontas” share capital in amount of LTL 999,334, i.e. from LTL 14,244,778 up to LTL 15,244,112. 18 November 2014 UAB “Kauno energetikos remontas” and “Lietuvos energijos gamyba” AB made an agreement of share signing contract. This contract signed 999,334 ordinary registered intangible shares of UAB “Kauno energetikos remontas” with nominal value per share equal to LTL 1. After UAB “Kauno energetikos remontas” share capital increase, “Lietuvos energijos gamyba” AB owned same shares part as before.

With 29 August 2014 approval of Lithuanian Ministry of Finance and 2 October 2014 decision of the Board of Company was established and 7 October 2014 registered Lietuvos energijos paramos fondas. The Company is founder of this fund. The fund’s share capital is LTL 10,000.

8 December 2014 the Company made agreement with UAB Duomenų logistikos centras on sale and purchase of shareholder’s rights, after agreement Company acquired 100 % shares of VŠĮ Energetikų mokymo centras.

17 October 2014 the Company’s, as the only shareholder, decision was made to increase UAB “VAE SPB” share capi-

The Company‘s ownership interests in the Group companies as of 31 December 2014 were as follows: Group company Subsidiaries: Lietuvos Energijos Gamyba AB LESTO AB Lietuvos Dujos AB Duomenų Logistikos Centras UAB LITGAS UAB Technologijų ir Inovacijų Centras UAB VAE SPB UAB Verslo aptarnavimo centras UAB Lietuvos dujų tiekimas UAB VŠĮ Energetikų mokymo centras Lietuvos energijos paramos fondas Investments: NT Valdos UAB

Acquisition cost

Impairment

Contribution to cover loss

Carrying amount

Ownership interest, %

1,017,997 1,860,624 594,043 25,096 30,000 11,110 1,010 1,020 3,000 1,068 10 3,544,978

(198,200) (198,200)

15 15

1,017,997 1,662,424 594,043 25,096 30,000 11,110 1,025 1,020 3,000 1,068 10 3,346,793

96.13 94.39 96.64 79.64 66.67 97.89 100.00 97 100 100 100

100 100 3,545,078

(198,200)

100 100 3,346,893

0.03

The Company‘s ownership interests in the Group companies as of 31 December 2013 were as follows: Group company Subsidiaries: Lietuvos Energijos Gamyba AB LESTO AB LITGAS UAB Technologijų ir Inovacijų Centras UAB VAE SPB UAB Investments: Duomenų Logistikos Centras UAB NT Valdos UAB

Acquisition cost

Contribution to cover loss

Carrying amount

Ownership interest, %

1,017,998 1,742,737 2,000 5 10 2,762,750

5 5

1,017,998 1,742,737 2,000 5 15 2,762,755

96.13 82.63 66.67 50.00 100.00

500 100 600 2,763,350

500 100 600 2,763,355

0.65 0.03

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Amounts receivable after one year Group 31 Dec 2014

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

Amount receivable on disposal of LITGRID AB

725,000

690,000

725,000

690,000

Loan granted

100,131

Other Carrying amount

3,130

22,888

828,261

712,888

825,131

690,000

In the management‘s opinion, the carrying amount of amount receivable from EPSO-G on disposal of LITGRID AB and of the loan granted and other amounts approximated their fair value as of 31 December 2014. In May 2014, a loan was granted and amendments were made to the agreement for purchase/sale of LITGRID AB shares: considering the changes in repayment dates, the interest rates were reviewed and set anew.

On 17 June 2014, a loan subordination agreement was signed between the bank, the Company and EPSO-G UAB, under which the Company subordinates a loan of LTL 179,546 thousand granted to EPSO-G UAB, in respect of the credit agreement signed between the bank and EPSO-G UAB.

Investments and other financial assets

Long-term investments and other financial assets comprise as follows: Group 31 Dec 2014 Available-for-sale financial assets

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

16,216

57,302

16,216

57,302

16,216

57,302

16,216

57,302

Held-to-maturity financial assets: Lithuanian Government bonds Carrying amount

Short-term investments comprise as follows: Group 31 Dec 2014

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

Held-to-maturity financial assets: Lithuanian Government bonds

40,131

81,433

Loans and amounts receivable: Bank bonds Interest receivable Carrying amount

As of 31 December 2014, the Group‘s and the Company‘s available-for-sale financial assets comprised Lithuanian Government securities denominated in LTL with redemption dates maturing in 2016. The weighted average annual interest rate on securities was 1.67 % as of 31 December 2014.

821

122,385

In 2014, the Group and the Company sold prior to maturity some of its securities that were classified as held-to-maturity financial assets as of 31 December 2013. As of 31 December 2014, the Lithuanian Government bonds were accounted for at fair value. The fair value of

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

debt securities was estimated with reference to the highest bid price (including accrued coupons) for relevant debt securities available from one of the three Lithuanian banks as at 31 December 2014. The nominal value of investments was multiplied by the best bid price (including accrued coupons) available as of 31 December 2014.

In 2014, the Company sold bank bonds which were held on 31 December 2013.

Inventories Group 31 Dec 2014

Raw materials, consumables and spare parts Goods for resale (including natural gas) Electricity meters Heavy fuel oil

31 Dec 2013

21,865

20,881

151,735

2,771

3,257

16,474

20,740

Other

2,825

4,222

Total

195,670

49,100

Less: write-down to net realisable value

(12,627)

(14,486)

Carrying amount

183,043

34,614

Movement on the account of write-down of inventories to net realisable value during the period ended 31 December 2014 and 2013 was as follows: Group Carrying amount at 1 January 2013

17,341

Additional impairment

1,898

Reversal of impairment

(4,753)

Carrying amount at 31 December 2013

14,486

Carrying amount at 1 January 2014

14,486

Additional impairment

809

Reversal of impairment

(2,668)

Carrying amount at 31 December 2014

12,627

Cash and cash equivalents

Cash and cash equivalents and bank overdraft include the following for the purpose of the cash flow statement: Group 31 Dec 2014

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

Cash and cash equivalents

728,605

558,396

108,235

Bank overdraft

(44,231)

(70,708)

309,974 -

Carrying amount

684,374

487,688

108,235

309,974

CONSOLIDATED AND COMPANYâ&#x20AC;&#x2122;S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Share capital

Based on Order No. 1K-060 of 21 February 2014 On increase of share capital of Lietuvos Energija UAB and amendment to the Finance Minister‘s Order No. 1K-251 of 16 July 2013 On amendments to the Articles of Association of Visagino Atominė Elektrinė UAB and formation of the Supervisory Board, the Ministry of Finance (“the Ministry“) made a decision to increase the Company‘s share capital by LTL 112.7 million. On 21 February 2014, the Ministry and the Company signed the Agreement for Subscription of Shares, under which the Company assumed a commitment to provide 112,685,657 ordinary registered shares, whereas the Ministry assumed a commitment to subscribe for the shares and cover their full issue price by an in-kind contribution representing state-owned shares of Lietuvos Dujos AB.

As of 31 December 2014, the Company‘s share capital totalled LTL 4,179,849,289 (31 December 2013: LTL 4,067,163,632). As of 31 December 2013 and 31 December 2014, the share capital was divided into ordinary registered shares with the nominal value of LTL 1 each. All the shares have been fully paid up.

Reserves

The movement in other reserves pertains to the transfers made by the subsidiary Lietuvos Energijos Gamyba AB from the reserve related to assets and from the reserve intended for investments. Transfers to retained earnings

On 6 March 2014, the share capital of Lietuvos Energija UAB was increased from 4 billion 067 million to 4 billion 180 million. The nominal value and issue price of newly issued shares was equal to LTL 1. The value of the Ministry‘s 17.7 % shareholding in Lietuvos Dujos AB was determined with reference to the provisions of the Law on Companies, and was equal to the weighted average 6 months‘ market price of LTL 112,685,657.

were made on the basis of the decision of the General Shareholders Meeting in 2014. The amount of transfers attributable to the Company‘s shareholders was equal to LTL 651.6 million.

Borrowings Group 31 Dec 2014

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

Non-current Bank borrowings

865,251

805,826

447,221

302,656

46,460

70,708

854

1,351,932

1,180,044

Current Current portion of long-term loans Other borrowings Bank overdraft Interest payable Total borrowings

Non-current borrowings analysed by maturity: Group 31 Dec 2014

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

Between 1 and 2 years

275,829

113,352

Between 2 and 5 years

331,221

590,329

Over 5 years

251,201

102,145

858,251

805,826

Total

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

The loan agreements contain certain financial and non-financial covenants that the individual Group companies are obliged to comply with. In the opinion of management, as at 31 December 2013 and 31 December 2014 the Group complied with these covenants.

except for Lietuvos Energijos Gamyba AB borrowings with the carrying amount of LTL 562.4 million and LTL 555.4 million, respectively. The fair values of these borrowings as at 31 December 2014 and 31 December 2013 were approx. LTL 532.2 million and LTL 609.9 million, respectively. The fair values were estimated using a discount rate of 2.46 % (31 December 2013: 2.9 %).

As at 31 December 2014 and 31 December 2013, the fair value of borrowings approximated their carrying amount,

Provisions Group 31 Dec 2014

Non-current

Company 31 Dec 2013

29,498

31 Dec 2014

4,588

31 Dec 2013 -

Current

33,620

12,437

Carrying amount

63,118

17,025

Group At 1 January 2013 Increase over the period

Commitments relating to emission limits

Provisions for employee benefits

Provisions for onerous contracts

Other provisions

13,895

3,227

305

17,427

9,745

4,153

101

13,999

(486)

(20)

(506)

Utilised during the period Decrease due to changes in assumptions

Total

(13,895)

At 31 December 2013

9,745

6,894

386

17,025

At 1 January 2014

9,745

6,894

386

17,025

Increase over the period

9,803

1,865

11,668

(10,042)

(3,567)

(13,609)

297

(1,425)

17,371

(101)

16,142

Utilised during the period Increase (decrease) due to changes in assumptions Acquisition of Lietuvos Dujos AB At 31 December 2014

7,964

23,928

31,892

9,803

11,731

41,299

285

63,118

On 7 May 2014, Lietuvos Dujos AB entered into arrangement with natural gas supplier OAO Gazprom for a significant reduction of the import price for natural gas for the period from 1 January 2013 to 31 December 2015. Based on this arrangement, gas import price calculation formula was adjusted for the Company on a retrospective basis for the period from 1 January 2013 to 31 March 2014.

Lietuvos Dujos AB and NCCPE agreed that the tariffs of natural gas for household consumers for the period from the 2nd half of 2014 through to 2016 will be reduced by the effects of reduced gas import price, and the Group accounted for LTL 23.9 million provision for onerous contracts for the share of reduced price effects for 2015.

CONSOLIDATED AND COMPANYâ&#x20AC;&#x2122;S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Other expenses Group 31 Dec 2014

Utility services Telecommunications and IT services

Company

31 Dec 2013

31 Dec 2014

31 Dec 2013

6,936

6,597

313

145

12,724

12,343

1,001

630

Business trips

1,533

1,332

180

195

Consultation services

5,204

5,666

675

789

HR development

1,999

1,744

226

111

Expenses of small-value inventory items

2,763

2,681

PR and marketing

3,662

2,858

236

Lease

9,736

8,315

545

480

15,764

13,479

434

549

Transport Customer service

9,418

8,547

Taxes

20,985

19,631

145

168

Subcontractor works and materials

10,101

34,603

Impairment of amounts receivable

(12,206)

19,337

14,334

17,414

1,682,167

5,354

209

(19,747)

14,320

(1,270)

(2,855)

Write-off of PP&E Impairment of PP&E and revaluation result Revaluation of emission allowances and provision expenses Inventory write-down AB LESTO investment value write-down Other expenses

198,200

84,033

13,518

610

429

1,848,136

184,884

202,774

3,593

Finance income Group 31 Dec 2014

Interest income Dividends received

31 Dec 2014

31 Dec 2013

15,129

16,851

14,728

6,644

489,331

109,255

1,837

Foreign exchange positive effect

31 Dec 2013

16,205

Income from financial derivatives Other finance income

Company

2,510

3,131

438

25,361

20,103

506,584

123,983

Finance costs Group 31 Dec 2014

Interest expenses Foreign exchange negative effect Other finance costs

24,138

Company

31 Dec 2013 30,041

31 Dec 2014

31 Dec 2013

401

2,792

146

27,015

30,219

413

CONSOLIDATED AND COMPANYâ&#x20AC;&#x2122;S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Business combinations

Lietuvos Energija UAB initiated expansion to gas industry sector, which was continued by the Group company UAB LITGAS (engaged in supply of liquefied natural gas (LNG) and trade in natural gas). This expansion was intensively pursued in the second quarter, and was supported in February 2014 with a designated supplier who is expected to ensure uninterrupted operations of LNG terminal in Lithuania. As the Ministries of Finance and Energy have implemented the Lithuanian Government Resolution No. 120 of 12 February 2014 On the investment of state-owned assets and increase of share capital of the companies, with effect from 21 February 2014 Lietuvos Energija UAB became a holder of 17.7 % shares of Lietuvos Dujos AB. Core line of business of Lietuvos Dujos AB is purchase (import) and sale of natural gas, provision of distribution services, and rational development of natural gas distribution infrastructure.

In June 2014, the Company acquired control over Lietuvos Dujos AB. The acquisition was carried out in three stages that are described in Note 6. The shareholding of 17.7 % acquired by the Company in February 2014, entitled the Company to participate at the Board of Lietuvos Dujos AB. Accordingly, this investment was recognised as investment in associate using the equity method. Additional shareholding of 38.9 %, which was acquired in May 2014, did not vest with any additional control rights. This investment met the definition of joint venture, because significant decisions related to the activities of Lietuvos Dujos AB could be made under joint agreement with another shareholder. The investment was further accounted for using the equity method, as set out below:

Acquisition cost of investment (17,7 %)

112,686

Fair value of net assets acquired

100,152

Identified goodwill

12,534

Share of results of investments under equity method for March-May 2014 Acquisition cost of investment (38,9 %)

46,249 219,009

Fair value of net assets acquired

321,795

Identified goodwill posted to share of results of investments under equity method Share of results of investments under equity method for June 2014

102,786 159

Share of results of investments under equity method

149,194

Value of investment under equity method before acquisition of control

480,889

With a shareholding of 56.6 % in Lietuvos Dujos AB the Company announced a mandatory non-competitive takeover bid to buy up the remaining shares, which was accomplished on 16 June 2014. The Company acquired 107,734,925 (one hundred and seven million, seven hundred and thirty-four thousand, nine hundred and twenty-five) shares of Lietuvos Dujos AB from OAO Gazprom and 8,622,363 (eight million, six hundred and twenty-two thousand, three hundred and sixty-three) shares of Lietuvos Dujos AB from minority shareholders.

Fair value Property, plant and equipment

449,439

Intangible assets

2,164

Other non-current assets

6,180

Current assets

350,819

Cash

126,594

Grants

Deferred revenue

Following a mandatory takeover bid, the Company holds 96.6 % shares of Lietuvos Dujos AB, and minority shareholders hold 3.4 % shares.

Other non-current liabilities

(7,964)

Current liabilities

(100,018)

Net assets acquired

827,214

Fair value of investment before acquisition of control

382,901

Non-controlling interest

(27,762)

Consideration paid on mandatory takeover bid

262,348

Goodwill on acquisition

(154,203)

Total cost of acquisition of control

645,249

Total cost of acquisition of control

645,249

The following assets and liabilities of Lietuvos Dujos AB were identified on acquisition with the following fair values at the date of acquisition:

The Group recognised LTL 97 million loss on re-measurement of investment in Lietuvos Dujos AB before acquisition of control at fair value through profit or loss. The

CONSOLIDATED AND COMPANYâ&#x20AC;&#x2122;S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Company determined the fair value using the discounted cash flow method in respect of supply and distribution activities; valuation assumptions are described in Note 3 Valuation of investments in subsidiaries. The fair value of property, plant and equipment was determined with reference to value in use based on discounted cash flow method. Deferred revenue and grants were written off on acquisition. The fair value of current assets and current liabilities approximated their carrying amount.

Acquisition-related costs were insignificant and they were included in other expenses in the statement of profit and loss and other comprehensive income. The consolidated statement of profit and loss and other comprehensive income includes revenue of Lietuvos Dujos AB dating from 20 June 2014.

Income tax expenses

Income tax expenses comprise current income tax and deferred income tax.

Non-controlling interest was estimated on a proportionate (pro rata) basis.

Income tax at a rate of 15 % is applied to profit for 2014 (the same as in 2013) in accordance with the Lithuanian regulatory legislation on taxation.

Dividends

With 14 November 2014 order Lithuanian Ministry of Finances approved the Company’s collection of financial reports for 6 month period and appointed to pay out dividends of 60 percent (LTL 85 M) of the Company’s first 2014 half-year profit for State owned the Company’s share.

During the General Shareholders Meeting of Duomenų Logistikos Centras UAB held on 30 April 2014, the decision was made to pay out dividends of LTL 1.9 million from profit for appropriation. The Company received dividends of LTL 1.5 million.

In 2013 the Company did not pay any dividends.

During the Extraordinary General Shareholders Meeting of Lietuvos Dujos AB held on 22 July 2014, profit for appropriation for the year 2013 was approved and a decision was made to pay dividends of LTL 53.3 million. For the Company was allocated dividends of LTL 51.5 million.

During the General Shareholders Meeting of LESTO AB held on 30 April 2013, the decision was made to pay out dividends of LTL 102,670 thousand from profit for appropriation. The Company received dividends of LTL 84.8 million. During the General Shareholders Meeting of Lietuvos Energijos Gamyba AB held on 30 April 2013, the decision was made to pay out dividends of LTL 25.4 million from profit for appropriation. The Company received dividends of LTL 24.4 million.

During the Extraordinary General Shareholders Meeting of LESTO AB held on 30 September 2014, the decision was made to pay out dividends of LTL 66.4 million for the period shorter than financial year. For the Company was allocated dividends of LTL 62.7 million.

During the General Shareholders Meeting of LESTO AB held on 4 April 2014, the decision was made to pay out dividends of LTL 114.7 million from profit for appropriation. The Company received dividends of LTL 94.8 million.

During the Extraordinary General Shareholders Meeting of Lietuvos Energijos Gamyba AB held on 30 September 2014, the decision was made to pay out dividends of LTL 69.9 million for the period shorter than financial year. For the Company was allocated dividends of LTL 67.2 million.

During the General Shareholders Meeting of Lietuvos Energijos Gamyba AB held on 4 April 2014, the decision was made to pay out dividends of LTL 150 million from profit for appropriation. The Company received dividends of LTL 144.2 million.

During the Extraordinary General Shareholders Meeting of Lietuvos Dujos AB held on 30 September 2014, the decision was made to pay out dividends of LTL 69.8 million for the period shorter than financial year. For the Company was allocated dividends of LTL 67.4 million.

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Transactions with related parties

As at 31 December 2013 and 31 December 2014, the parent company was the Republic of Lithuania represented by the Lithuanian Ministry of Finance. For the purpose of disclosure of related parties, the Republic of Lithuania does not include central and local government authorities. The disclosures comprise transactions and their bal-

ances with the parent company, subsidiaries, associates and management. The following transactions were conducted with related parties:

Sales of goods and services (including financial) Group 31 Dec 2014 LESTO AB “Lietuvos energijos gamyba” AB NT Valdos UAB UAB LITGAS Technologijų ir Inovacijų Centras UAB UAB Duomenų logistikos centras (up to 4 November 2013 was called UAB Technologijų ir Inovacijų Centras) EPSO-G UAB Group’s associates and joint ventures

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

43 23 1,276 11

39 2 -

119 865 984

10,800 449 11,249

1,353

Purchase of goods and services Group 31 Dec 2014 LESTO AB Lietuvos Energijos Gamyba AB NT Valdos UAB UAB Duomenų logistikos centras (up to 4 November 2013 was called UAB Technologijų ir Inovacijų Centras) Technologijų ir Inovacijų Centras UAB UAB Verslo aptarnavimo centras Všį Energetikų mokymo centras UAB “EPSO-G” Group’s associates and joint ventures

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

19,199 41,604 1,097

5 1,049

43,496 10 43,506

7,153 7,153

1,000 82 13 62,995

662 1,716

Amounts receivable from related parties Group 31 Dec 2014 AB LESTO „Lietuvos energijos gamyba“, AB UAB LITGAS AB „Lietuvos dujos“ UAB Duomenų logistikos centras (up to 4 November 2013 was called UAB Technologijų ir Inovacijų Centras) EPSO-G UAB Group’s associates and joint ventures

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

1 704 -

2 -

1 255 256

727,469 77 727,546

705

727,469 727,471

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Amounts payable to related parties Group 31 Dec 2014

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

LESTO AB

Lietuvos Energijos Gamyba AB

NT Valdos UAB

194

Technologijų ir Inovacijų Centras UAB

278

UAB Verslo aptarnavimo centras

Všį Energetikų mokymo centras

UAB Duomenų logistikos centras (up to 4 November 2013 was called UAB Technologijų ir Inovacijų Centras)

124

1,705

1,707

451

318

UAB “EPSO-G” Group’s associates and joint ventures

Group 31 Dec 2014

Company 31 Dec 2013

31 Dec 2014

31 Dec 2013

Salaries and other benefits to management:

11,913*

9,765

2,167

1,209

Whereof: termination benefits and payments to board members

1,432*

810

325

112

Number of management staff

Management in the table above includes heads of administration, their deputies and chief accountants. *Lietuvos Dujos AB data from 1 July 2014.

Off-balance liabilities

Given guarantees 3 October 2014 the Company made a warranty or guarantee limit agreement with UAB LITGAS, according which the Company gives UAB LITGAS compensable assurance in amount EUR 100 M, which can be increased by EUR 25 M. The Company’s subsidiary UAB LITGAS for funding of implementation of appointed supply activity and purchasing testing cargo of liquefied natural gas on 17 September 2014 concluded credit agreement with Swedbank AB. The maximum amount of credit, which can be granted under this agreement is EUR 83.3 M.

14 October 2014 the Company published guarantee, which beneficiary is Statoil ASA. Guarantee is appointed to assure payment for UAB LITGAS purchased testing cargo of liquefied natural gas. The maximum amount of guarantee cannot exceed USD 29.3 M and ends on 15 January 2014. 17 November 2014 the Company made a warranty agreement with Swedbank AB. Warranty agreement is appointed to insure part of UAB LITGAS liabilities, topping from credit agreement with Swedbank AB. The maximum amount of this warranty cannot exceed EUR 41.6 M.

Events after the end of the reporting period

Establishment of subsidiaries 19 February 2015 were established new companies UAB Vilniaus kogeneracinė jėgainė and UAB Kauno kogeneracinė jėgainė, whose activity is oriented to modernization of heat sector in Vilnius and Kaunas by setting up a waste

and biomass fired cogeneration power plants complexes. New power plants also will produce significant amount of electricity in competitive price, which will allow maintaining better prices for electricity users. Both companies share capital is EUR 2,900 each, signed shares were paid on 20 February 2015.

CONSOLIDATED AND COMPANY’S CONDENSED INTERIM FINANCIAL INFORMATION (unaudited) for a twelve month period ended 31 December 2014

Lietuvos Energija UAB Žvejų str. 14, Vilnius www.le.lt