LITGRID
Notification on material event

Regarding the decision of the Director of the Supervision Service of The Bank of Lithuania

Vilnius, Lithuania, 2013-12-19 08:46 CET -- 2013 12 18 Litgrid AB received the Decision No 241-235 of 2013 12 17 by the Director of the Supervision Service of The Bank of Lithuania.

The Company has been obliged to announce that the consolidated financial statements of Litgrid AB and the financial statements of its parent company do not comply with Article 31 of IAS 16 “Property, Plant and Equipment” and Article 9 of IAS 36 “Impairment of Assets”.

The key factors to determine the fair value of the Company’s assets lie with the assumptions used in assessing the regulatory environment in future periods. As the State Commission on Prices and Energy Control has not completed the adoption of the Long-run average incremental costs (LRAIC) method, the Company could not adopt reasonable assumptions for the valuation of assets and, therefore, could not determine the fair value of the assets and the scope of its potential impairment. For this reason the Company is unable to determine the potential impact of asset valuation on the financial position and financial results of the Company and the Group as of 31 December 2012.

Upon adoption of the LRAIC method by the State Commission on Prices and Energy Control in 2014, the Company will determine the fair value and the potential impairment of the assets. Financial statements compliant with Article 31 of IAS 16 and Article 9 of IAS 36 will be published on 31 March 2015 at the latest.

         Laura Šebekienė
         Head of Communications
         Ph. + 370 693 65377,
         Email: laura.sebekiene@litgrid.eu