Vilkyskiu Pienine

Earnings Release • May 31, 2012

VILKYŠKIu PIENINe AB Group ˙ ˛

The results of 3 months of 2012

About the Company

Vilkyškių pieninė AB, was established in 1993 m. On the 31th of March 2012 the Group had 878 employees The production of Diary products is the core of Group businessĮmonės Companys's share capital amounts to 11,9 million. Lt Shares issued by the Company have been included into the Current Trade List of Vilnius Stock Exchange. The shares are listed in the Official List of Standards: ISO 9001:2000 and ISO 22000:2000

Companies of the group

VILKYŠKIŲ PIENINĖ AB

Parent Company Established in 1993 Main activities: The production of cheese, cream, whey

"MODEST" AB

The subsidiary Company Established in 1992 Main activities: The production of melted smoked cheese, cheese with mould, Mozzarella, other kinds of cheese

KELMĖS PIENINĖ AB

The subsidiary Company Established in 1993 m. Main activities: The production of fresh dairy products.

Short history of the Company

1993	Company established
1999-2000	the fully computerized and automated technological line of cheese production started to work in Vilkyškiai
2000	the company received Export Licence to the European Union
2001	company acquired Taurage workshop form Mažeikiai subsidiary of Pieno Žvaigždės AB
2004	Vilkyškių pieninė AB received Export Licence to Russia
2006	acquired "Modest" AB
2006	the Company have been included into the Current Trade List of Vilnius Stock Exchange
2007	implement development of main technological line of cheese production in Vilkyškiai
2008	acquired Kelmės pieninė
2008	installed the whey processing shop in Vilkyškiai
2008	These certificates of the standards ISO 9001:2000 and ISO 22000:2000 were presented to Vilkyškių pieninė AB
2009	Kelmės pieninė AB received Export Licence to Russia
2005-2011	Company use the support of European Union and other fonds, involve in social projects

Significant events in I Q 2012

• • A new cheese production line, worth about 16 million. LTL, was installed in Vilkyskiu pienine AB. The growth of production's capacity seek 30 percent
• • AB Vilkyskiu pienine participated in exhibition "ProdExpo 2012", which took place in February Moscow, Russia
• • Semi hard cheese "Maasdam" was awarded gold medal in category "The best product" at the international exhibition "ProdExpo" in 2012
• • "Vilkyškių" gooseberry yoghurt was awarded gold medal in category "The best product" at the international exhibition "ProdExpo" in 2012
• • Piquant semi hard cheese "Basilis" with basil and glazed sweet cheese curd with sea-buckthorns and rhubarbs were nominated as "Russia's trade network selection" at the international exhibition "ProdExpo" which took place in 2012 Moscow.
• • Souvenir packages collection of cheeses was introduced (hard cheeses "Prussia", "Žalgiris" and "Legend" - in the souvenir packages)
• • The website was renewed to www.vilkyskiu.lt

Shareholders

Shareholder	Shares	Ownership interest, %
Gintaras Bertašius	6,067,206	51%
Linas Strėlis	1,015,000	9%
Skandinaviska Enskilda Banken AB	962,427	8%
Non-controlling interest	3,898,367	32%
Capital in total	11,943,000	100%

Trading inthe issuer's securities onthe regulatedmarkets

SHARE PRICES OF VILKY ŠKIŲ PIENINĖ AB AND INDEX OF OMX VILNIUS

Mainfinancial indicators

During the first months of this yearThe group of Vilkyškių pieninė had a loss.The loss was due to modernization of main technological line of cheese production in Vilkyskiu pieninė AB (in February –March), because of it the production of cheese were stopped. Another reason of loss is a significant fall in sales prices of products in export markets.

(Thousands LTL)	2011 I Q	2011 II Q	2011 III Q	2011 IV Q	2012 I Q
Revenue	63,329	66,480	80,929	79,395	68,827
EBITDA	3,494	4,378	6,378	4,316	1
EBITDA margin (%)	6%	7%	8%	5%	0%
Amortisation and depreciation	1,547	1,922	1,534	1,197	1,190
Net profit	1,517	2,765	4,277	2,082	-1,234
Profit margin (%)	2%	4%	5%	3%	-2%
Quantity of purchased milk, t	38,937	47,533	60,420	50,646	43,237
Profit (loss) per share (Litas)	0.13	0.23	0.36	0.16	-0.10
Net financial debt	45,261	44,429	48,704	45,261	53,438

EBITDA margin (%) Amortisationand depreciation

0

www.vilkyskiu.lt

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Salesmarkets

(Thousands LTL)	2011 I Q		2012 I Q
Lithuania	22,482	36%	31,755	46%
European Union	19,014	30%	16,058	23%
Russia	19,677	31%	17,804	26%
Other countries	2,156	3%	3,210	5%
Total income:	63,329		68,827

2012 I Q

2011 I Q

Income fromsold production

(Thousands LTL)	2011 I Q		2012 I Q
Fermented cheese	31,663	50%	32,160	47%
Cream	13,756	22%	8,287	12%
Whey products	3,138	5%	2,547	4%
Sour cream	3,374	5%	4,451	6%
Curd products	6,696	11%	9,719	14%
Butter	1,756	3%	3,288	5%
Other income	2,946	4%	8,375	12%
Total income:	63,329		68,827

2012 I Q

11

VilkyškiU pieninE AB ˛ ˙

Vilkyškiai, Pagėgių sav. 277160980 Phone 8-441-55330 Fax 8-441-55242 info@vilkyskiu.lt www.vilkyskiu.lt

Contacts

Gintaras Bertašius Director General

Phone +370 441 55 330 gintaras@cheese.lt

Vilija Milaševičiutė Director of finance

Tel. +370 441 55 102 vilija@cheese.lt