Latvijas Gaze

Investor Presentation • Sep 7, 2016

REORGANISATION OF LATVIJAS GĀZE

Extraordinary meeting of shareholders, September 2, 2016

PRINCIPLES OF REORGANISATION

Reasons of the company's unbundling

• The European Union requirements on market liberalisation
• The Energy Law amendments adopted by the Parliament in February 2016

Unbundling requirements

• To separate transmission and storage from trade
• To set up a sister company
• The sister company has to be established by April 3, 2017

Course of reorganisation

• During the Shareholders' meeting held in March, the shareholders voiced their position in support of initiating the spin-off of LG
• A decision on approval of the spin-off decision is to be made today
• The foundation meeting of Conexus Baltic Grid to approve its articles of association, council etc. is due in late 2016

SPIN-OFF OF LATVIJAS GĀZE

SHARES

Shares

• The number and par value of shares does not change
• 39,900,000 shares; 1.4 EUR
• Will continue to be quoted on the stock exchange
• All current shareholders may keep their shares

Shares

• Number of shares: 39,900,000
• Par value: 1 EUR
• Shareholders will decide whether it will be a public or closed company
• Draft articles of association will be published at least a month before the foundation meeting
• 5 • As per Energy Law amendments, the requirements on independence between the two companies have to be met also at owner level

VOTING OPTIONS

Certified lawyer Sandis Petrovičs speaks

VOTING

DOCUMENTS

Before today's voting, the following documents were available to shareholders on the Latvijas Gāze website and on the Nasdaq stock exchange system:

• Spin-off Decision
• Reorganisation Prospectus
• Asset Distribution Deed
• Spin-off Balance Sheet
• Auditors' opinions:
  • o Verification of draft Spin-off Decision
  • o Sufficiency of the assets to be transferred for the fixed capital of Conexus

YOUR QUESTIONS ARE WELCOME!

Follow the further course of reorganisation on the Latvijas Gāze website www.lg.lv or on the Nasdaq stock exchange website www.NasdaqBaltic.com

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