Litgrid AB

Investor Presentation • Nov 30, 2016

Litgrid – the backbone of energy sector

Daivis Virbickas Litgrid CEO

Vilnius 30 November 2016

Litgrid – the power logistics ensuring backbone of the power sector

• Average age of staff 42 years
• Average length of experience in energy sector 12 years
• 73% of staff men, 27% women
• 50% of staff KTU alumni
• 9 doctors of science
• By successfully implementing unique energy projects of European significance, we accumulate exclusive competences

Litgrid shares on Nasdaq Vilnius

Market capitalisation* - 353,03 mln. EUR Price-to-earnings ratio - 21 Number of shareholders**: 5,540

The new power interconnections in operation since the beginning of 2016

LitPol Link

• Litgrid investment: € 108 million
• Power link capacity 500 MW
• Power link availability: 95 %

NordBalt

• Litgrid investment: € 222 million
• Power link capacity 700 MW
• Power link availability: 77 %

Power links impact financial results

• Growth in both income from and costs of balancing and system services
• Increase in grid losses compensated through tariff
• Increase in capital costs compensated through tariff depreciation and net profit from licensed activities
• New type of revenues congestion income

Profitability indicators

€ million

Litgrid share in tariff structure

• Litgrid share in electricity tariff structure is just 9%
• Investment into the new power interconnections influenced decrease of the commodity price by 22% compared to 2014

Investments for system security, new business opportunities and better financial results

• High level of investment during 2014-2015 due to interconnection projects implementation
• The investments of 2016-2021 period primarily go to grid enforcements and system reliability and security

Key investments to ensure system reliability and security