Published: 2015-02-18 16:55:00 CET
LESTO
Notification on material event

LESTO performed a valuation of tangible fixed assets as of 31 December 2014

LESTO AB (hereinafter – LESTO, The Company), identification code 302577612, registered office placed at Žvejų str. 14, Vilnius, Republic of Lithuania. The total number of registered ordinary shares issued by company is 603 944 593; ISIN code LT0000128449.

Implementing the decision Nr. 241-236 of Director of Supervisory Authority of the Bank of Lithuania dated 17 December, 2013, LESTO was obliged not later than under preparation of 2014 financial statements to correct the financial statements in accordance with Article 31 of 16 International accounting standard (hereinafter - IAS) and Article 9 of the 36 IAS, i.e. to determine the fair value of Company's tangible fixed assets.

LESTO notifies that valuation process is completed.

Based on report of valuation of fixed tangible assets prepared by UAB „Ernst & Young Baltic“, the Company finished the valuation process and estimated that the fair value of the tangible fixed assets (including construction in progress), dated 31 December 2014, which based on preliminary unaudited financial statements of the Company, is equal to LTL 2.357 billion (EUR 682.669 million) – LTL 2.135 billion lower than the assets net book value dated 31 December 2014, which amounted to LTL 4.492 billion (EUR 1.301 billion).

Cost and income approach methods were used while valuating assets of the Company. The value of fixed tangible assets of the Company shrank mainly due to decisions made by National Commission for Energy Control and Prices during period of 2009-2015 year, which resulted lower value of fixed tangible assets in assessing the income approach method.

Before valuation of fixed tangible assets, net profit of LESTO in 2014, based on preliminary unaudited financial statements of the Company, amounted to LTL 81.518 million (EUR 23.609 million) – almost twice as much as in 2013 when it was equal to LTL 43.372 million (EUR 12.561 million). After valuation of assets, Company incurred net loss, which amounted to LTL 564.000 million (EUR 163.346 million).

LESTO EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)  in 2014 was not affected by the valuation of fixed tangible assets and amounted to LTL 445.905 million (EUR 129.143 million), while in 2013 it was equal to LTL 446.905 million (EUR 129.433 million). EBITDA margin, due to more efficient operations of the Company, increased by 1.21 per cent points and amounted to 19.85 %.

After valuation of fixed tangible assets, Company’s equity dated 31 December, reduced by LTL 1.889 billion (EUR 547.299 million) and amounted to LTL 1.365 billion (EUR 395.377 million), retained earnings of the Company was equal to LTL 489.077 million (EUR 141.646 million).

These changes does not affect the long-term strategic objectives of the company - increase efficiency of operations and ensure reliable, safe and smartly managed services for the customers.

We draw the attention, that the financial indicators are based on the preliminary unaudited financial statements of the Company for the year 2014.

Other periodic information will be provided in accordance with the terms established in Company‘s Investor calendar.

Information is not confidential.

         Person for contact: Representative for Public Relations Martynas Burba, Tel. No (8~5) 251 4516.