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AB lietuvos geležinkeliai / 2011 / annual report 3 Dear Readers, I welcome the fact that AB Lietuvos Geležinkeliai performance in 2011 was profitable and the results surpassed expectations. The increase in rail freight flows demonstrates that the economy is slowly recover- ing from the crisis. The Company managed to successfully take advantage of the economic recovery, to motivate staff for effective performance, and to increase investment volumes in the Lithuanian railway network and services. The development of Lithuanian railway transport is closely linked with the implementation of latest initiatives relating to the EU transport policy in the field of sustainable and green transport. Strategic aims of the Company to ensure the smooth movement of freight flows and to improve passenger services in 2011 were being realised by carrying out projects of infrastructure development, signalling, telecommunica- tions, control, management information systems, purchase of rolling stock etc. A very important European gauge project, Rail Baltica, has gained considerable momentum. In order to successfully execute Lithuanian railway development plans, in 2011 the board of the Company discussed and made decisions regarding any major project, as well as designing further development plans. I would like to highlight some important moments in the development of Lithuanian railways: Arūnas Štaras • The Company is engaged in an ambitious development programme which will substantially improve Vice-Minister of Transport and Communications the quality of Lithuanian railway infrastructure resulting in higher train speeds and improved inter- Chairman of the Board faces of rail services with other transport modes; AB Lietuvos Geležinkeliai • The Company is successfully collaborating with Klaipėda Seaport, thus promoting the development of an integrated transport hub; • The Company has been further implementing the projects related to Vilnius and Kaunas public logistics centres; • Close cooperation has been conducted with Belarusian railway undertaking in implementing the high-speed train Vilnius–Minsk project, as well as making preparations for electrifying the section Vilnius–Molodecno; • Rail Baltica has been acknowledged by the Seimas of the Republic of Lithuania (Lithuanian Parlia- ment) as a state priority project of particular importance; • Considerable political support and strong company performance in exercising the options of East– West corridor have resulted in the test driving of shuttle container train Saulė (The Sun) on the route China–Kazakhstan–Russia–Belarus–Lithuania–Poland–Germany–Belgium; • The Company has been more active on international markets by developing new logistics schemes and harmonising possibilities for freight traffic on Lithuanian railways, i.e. exploring ways for the development of shuttle train Viking, as well as upgrading shuttle train Mercury on the route Klaipėda– Moscow. It is important that the company staff are competent and able to implement strategic targets set for them- selves and to successfully develop the Lithuanian railway transport industry.

Arūnas Štaras Vice-Minister of Transport and Communications Chairman of the Board AB Lietuvos Geležinkeliai 4 AB Lietuvos Geležinkeliai Managing Director Stasys Dailydka ot by or rolling stock nificant decrease passengerin operating loss in 2011– provide further impetus to invest in new modern Passenger transport still is aproblem, yet improving results –greater number passengers and of asig- project. this of start the to contributed forwarding and companies, port aswell asLithuanian authorities; Lithuanian and Kazakh leaders also Baltic region. This projectis the effectiveresult several-year of cooperation among railway undertakings, na, Kazakhstan) and the most one is of significant rail projects not only in Lithuania but also in theentire Intermodal project (The Saulė Sun) connects Western European marketswith major Asian markets (Chi- implemented. be to started were Mercury and Saulė projects intermodal container train Vilnius–Klaipėda–Vilnius (Vilnius Shuttle) project was being successfully developed, new Viking carried arecord amount, 56.0thousand TEUcontainers of incent 2011(34per over 2010). The The yearsaw 2011 trends new ofin the field intermodal freight transportations. The intermodal train Environmental Centre was established at the Company in 2011. ronment. the greatest of One concerns and energy savingnatural is of resources; due to this reason the way infrastructure reduce the negative effects caused by the Company’s economic on activity theenvi - Constant modernisation old rolling of stock and acquisition newone aswell asreconstruction of rail of - Depas. Remonto Vilniaus Lokomotyvų tant event was manufacturing 6newshunting of locomotives TEMTMH at asubsidiary company UAB In 2011, the modernisation programme for locomotive fleet further beingwas conducted. impor A very made regarding Kaunas Public Centre, Logistics and the design work was started. Centre was approved and the public enterprise Vilnius Park Logistics was established. The decision was technical projects for other sections were being prepared. The detailed plan of Vilnius Public Logistics reconstruction the firstparallel of section of track between Mockava Šeštokaiand was completed, and advanced considerably. work contract the conducted; project, Baltica the Rail Within of framework the systems was completed; the design work for arranging the newTraffic ManagementCentre being was diagnostic railway installing infrastructure out; of I Stage carried further being were structures track of IX was completed; the modernisationsignalling of and power supply installations and the reconstruction pleted; the design work for electrification thesection of Naujoji Vilnia–Kena–StateBorder on Corridor technical projects for the second construction tracks of on anumber sections on Corridor IXBwere of com- started; was Vilnius of bypass reconstruction the implemented; being were projects development junction was allocatedfunds for the reconstruction and modernisation railway of infrastructure: Klaipėda railway An important source for investment was the EUsupport (about cent). 35per The thesemajor part of a total LTL of 606.9 million. More the totalthan of half invested cent) (59.0 per funds were funds. own Special attention was paid to the development Lithuanian of railways. In 2011, the Company invested billion tkm; passenger flows were also increasing after of quitetime. a long period tion systems. In 2011for the firsttime in the Lithuanianhistory of railways,freight volumes exceeded 15 company, introducing latest technology aswell asmanagement and control methods based on informa- strong, aneconomically being date commemorated important that note we this to profitablemodern and The year 2011 marked the 20th anniversary reinstated of independent Lithuanian railways. I am pleased Readers, Dear her means to improve theattractiveness this service. of - ietuvos G AB Lietuvos D Managing Stasys D ailydka irector eležinkeliai

AB lietuvos geležinkeliai / 2011 / annual report 5

AB lietuvos geležinkeliai / 2011 / annual report 8 CONTENTS M INCO sheets Balance 'S REPORT AUDITOR INDEPENDENT G AB Lietuvos 2011 in Events Major MAN RESOURCES HU I I ENVIRON T M DEVELOP TECHNICAL RAIL LITHUANIAN Stock Rolling P F MM CO W OF REVIE nfor R nternational raffic Safety raffic assenger Services assenger reight Services reight mation T E STATEM M ENTAL PROTECTION eležinkeliai Managem eležinkeliai echnology ENT W elations PERFOR FINANCIAL AND ERCIAL AY INFRASTRUCTURE INVEST AND ENT M ent Structure ent POLICY ENT MANCE 35 28 26 24 19 17 39 37 36 30 29 25 21 18 16 10

AB lietuvos geležinkeliai / 2011 / annual report 9 10 B PERFORMANCE FINANCIAL AND REVIEW OFCOMMERCIAL ASIC INDICATORS m inco Sales A N Staff C I I R R m E N iquidity (current assets/current liab assets/current (current Liquidity F G N R P ther costs Other C C Total C ther revenues Other INDICATORS A R R Total R Equity Assets nvest nvest inancial I inancial B rofit b rofit ) (net profit/equity), % profit/equity), ) (net (ROE Equity on eturn eturn on A on eturn esult (LTL m financial and investing activities investing and m financial fro evenues (sales) activities m core fro evenues verage m om osts of financial and investing activities investing and financial osts of activities core osts of ssets and Liab ssets and umb argin (net profit/sales), % profit/sales), (net margin et profit et profit argin (gross profit/sales), % profit/sales), (gross margin ross profit illion) (earnings b ITDA (earnings pany invested funds er of staff of er m m evenues (LTL m evenues osts (LTL m efore tax efore ent (LTLent m ent onthly salary (LTL) ndicators illion) ssets (ROAprofit/assets),) (net % e per em e per ilities (LTL m ilities illion) illion) efore interest, taxes, depreciation and am and taxes, interest, depreciation efore ployee (LTL thous./person) illion) illion) ilities), % ilities), ortisation) (LTL 1,457.0 1,483.4 1,621.7 1,661.0 2,711.4 4,855.4 10,505 2,931 154.4 358.2 606.9 525.4 147.3 177.6 2011 20.2 24.0 28.3 11.0 5.4 3.0 9.1 1.0 2.4 1,282.5 1,315.2 1,364.7 1,393.5 2,614.6 4,501.1 10,318 2,722 132.3 257.1 638.7 413.7 2010 16.4 65.4 78.3 30.6 19.3 2.5 1.5 4.8 0.9 2.1 9.5 • • • revenuesmajor of part came from freight transportations. respectively by cent, 19.2per compared to 2010, up to LTL 1,661.0million. As in previous years, the The providedtheservices volumes of Companytheby having increased in 2011,the revenues rose REVENUES 2010 retained earnings. In 2011, theCompany paid out to thegovernment LTL atotal of 56.4million as dividends from the Nordic Investment Bank and other credit institutions. acquisition rolling of stock, theCompany had takenout totally 10long-term loans from theEBRD, EIB, financethe investment projects concerningthe modernisation and development infrastructure of and 2011,By 31December theCompany theloan portfolio of had reached LTL 456.9million. In order to Geležinkelių Projektavimas) as well as by in arise net profits. grants from theState budget, transferring thefinancial assetsfrom the state ownership (shares of UAB in capital was determined by an increase in the Company’s statutory capital made by subsidies and During theyear 2011, theshareholders’ equity grew by cent 3.7per to LTL 2,711.4 million.growth The centper amounting to LTL 367.8million and accounted for cent 7.6per in thetotal asset structure. The prepayments andthe amountcash having of increased,Company’sthe current assets rose by 25.1 Park), thestakeholder which theCompany of in 2011. became ment in subsidiary companies and in Public Enterprise Vilniaus Logistikos Parkas (Vilnius Logistics of the TheCompany financial assets increasedcentper by1.9 up tomillion LTL 115.3 due to invest- theCompany of sets due to considerable investment in public railway infrastructure and rolling stock. up to LTL 4,487.6million, compared to 2010. This was mostly determined risethetangible by a in as- non-current assets accounted for cent 92.4per in thetotal asset structure, cent 6.7per an increase of In 2011, the Company the assets of went up by cent 7.9 per amounting to LTL 4,855.4 million. The B THE IN CHANGES by rendered an increase services abroad, in thescope of scrap asset iron. and of lease sales ous year and accounted for cent 8.1per in thetotal revenue structure.growth The was determined 2011, therevenues from rendering theaforementioned grew by services 1.4times over theprevi- and maintenance rolling of stock, asset lease, freight handling and storage, scrap iron. of sales In abroad), provides transportation baggage and post, of and renders related theservices to repair other countries,territory of operation locomotives of and engine-crews abroad, wagons theuse of Other revenues privileged passengers (cf. LTL 8.15million in 2010). subsidies were from allocated theState budget for financingpassenger traffic in2011 to reimburse passengersleged having transported been during theaccounting period, LTL atotal of 9.2million railwaybetween in different undertakings countries. Greater studentsnumbers of and other privi- on domestic lines and stronger exchange rate theSwiss of franc for used international settlements 2011, cent 10.1per over of arise theprevious year. This was due theto increasedpassenger flows Passenger revenues freight transportation rates having indexed 2011. at been of thebeginning an increase in freight transportation volumes and related as in well scope of as services due to the revenues from in earned 2011 rose freight services by cent 17.6 per over the previous year due to Freight revenues .Company The also operates outsidethe country (freighttransportations theon . Freight revenues accounted for cent 84.5per in thetotal revenue structure. The . Passenger revenues accounted for cent 5.1per in thetotal revenue structure in SHEET ALANCE 1000 1500 2000 500 0 1,433.2 INVEST AND FINANCIAL ACTIVITIES OTHER M SUPPLE OTHER PASSENGER FREIGHT , LTL M TOTAL REVENUES

2007 2011 IN STRUCTURE REVENUE 5.1 % 1,630.4

2008 8.1 % 1.7 % 1,206.0 0.6 % 2009 ENTARY SERVICES 1,393.5 M 84.5 % ILLION 2010 ACTIVITIES ENT 1,661.0

2011

AB lietuvos geležinkeliai / 2011 / annual report 0 500 100 150 200 11 0 0 0 12 • • • In 2011, theprofitability ratios were considerably improved: PROFIT amount. ernisation amounted to LTL 0.725million in 2011. The costs incurred in 2011 were reduced saidby expenses designed forservicing financing investment projectspublic railwayof infrastructure- mod The State subsidies provided for covering loss-making passenger and forservices reimbursing loan centand 16.5per respectively. cent,per the non-current while asset depreciation costs and made thecostsfuels cent up 22.3per of In 2011, remuneration costs represented major in thetotal part cost structure and accounted for 32.0 financed.been traffic safety had shrunk duringbeen thedownturn in the economy only when repairs thenecessary for ensuring the countries. Also, amajor rolling stock and track repairs programme was out carried in 2011, which had costsin theboost of related to fuels, remuneration and settlements with railway in other undertakings cent over 2010.growth The in costs was mostly determined transportation by higher volumes resulting The costs incurred Companytheby in 2011 amounted to LTL 1,483.4 million, per 12.8 an increase of STS CO FINANCIAL PERFORMANCE FINANCIAL AND REVIEW OFCOMMERCIAL net profit margin: centper centper 9.1 (4.8 in 2010). net profit: LTL 147.3 million (cf. LTL 65.4 million in 2010); and profitbefore tax: LTL 177.6 million (cf. LTL 78.3 million in 2010); 100 150 200 50 0 6.2 % 2.2 % 164.0 COSTS OTHER INVEST AND FINANCIAL REPAIRS MATERIALS RESOURCES ENERGY (AM DEPRECIATION FUELS MUNERATION RE 4.5 % B PROFIT

2007 1.6 % 2011. IN STRUCTURE COST 22.3 % 123.4 14.7 %

2008 TAX EFORE 12.3

ORTISATION) , LTL M 78.3 M 16.5 %

2010 COSTS ENT ILLION 32.0 % 177.6

2011 0 50 10 15 20 0 0 0 • • • • • companies: In 2011, AB Lietuvos group Geležinkeliai consisted of AB Lietuvos and Geležinkeliai its subsidiary SU OF RESULTS OPERATING associated company UAB VAE Legetecha. state ownership to theCompany thus increasing its authorised capital); UAB Geležinkelių Projektavimas (since November 2011theshares have transferred been from the UAB Tiesimo Geležinkelio Centras; UAB Gelsauga; UAB Vilniaus Lokomotyvų Remonto Depas; UAB G L okom U UAB G AB VAE Leg P U eležinkelio T eležinkelio ilniaus UAB Vilniaus rojektavi a AB Gels C otyvų R otyvų C om entras D eležinkelių eležinkelių epas pany c ete uga em mas onto onto iesi ha m o P M CO BSIDIARY rofit (loss) during the the (loss) during rofit reporting year reporting (LTL thous.) 4,178.6 1,270.0 3,165.4 3,845.0 130.5 PANIES T urnout manufacturing urnout ecurity and cleaning cleaning and Security olling stock repairs repairs stock Rolling and manufacturing and Rail T rack and repairs research w research construction C w ore activity ore ay and design services ork

AB lietuvos geležinkeliai / 2011 / annual report 13

AB lietuvos geležinkeliai / 2011 / annual report 16 tics centres has been further conducted.tics centres further has been and back) and Šeštokai Express (Šeštokai–Smolensk) have started. been Design work for public- logis Active preparations for implementing intermodal projects Mercury (Klaipėda/Kaliningrad–Moscow Asia by Lithuanian logistics bridge. implementation to foster is expected development further green transport connecting of Europe and countries. Railway themost is one of environmentally transport friendly modes; therefore, theproject ties, Seaport, Klaipėda VPA Logistics, administrations railway of in Lithuania undertakings and other realisation this project of is theresult effectiveseveral-year of cooperation among Lithuanian authori- lar basis China, between Kazakhstan, Russia, Belarus, Lithuania and Western European countries. The implementedbe connecting European and Asian countries. Saulė container on train run aregu will - 6.6thousandtotal of TEUwere on this route carried in 2011. The new project,Saulė, was started to Vilnius Shuttle (Klaipėda–Vilnius–Klaipėda), project, anew has gained considerable momentum. A thousand containers (TEU) were in 2011. carried train project was successfully being further out carried by AB Lietuvos Geležinkeliai. 56.0 A total of Particular attention was paid to thedevelopment intermodal freight traffic. of TheViking container tonnes in 2010).transit The majority freightof wastraditionally transported to Kaliningrad. In 2011, transit freight accounted for 13.2 million tonnes or cent 8.0 per down 2010 (cf. 14.4 million to Lithuania. Belarus, Russia, Ukraine, Poland and Kazakhstan are themain countries transporting cargo by railways transportations throughSeaport. fertilisers Belarusian Klaipėda of oil and petroleum products up to 4.4million tonnes in 2011. increase wasA particular recorded in the up fertilisers eral to 9.0million tonnes, as well cent as 21.0per anin thevolumes increase crude of of in import freight was by determined cent 26.2per anin thevolumes increase chemical of and min- of In 2011, import freight accounted for 18.9 million tonnes (cf. 14.9million tonnes in 2010).growth The (189.9 thousand tonnes cent or 27.4per over 2010), and other cargo. 2010), animal products (237.2thousand tonnes cent or 2.8per over 2010), and machinery vehicles sand tonnes cent or 32.5per over 2010), ferrous (331.0thousand metals tonnes cent or 16.7per over the previous year), foodstuffsthousand (563.2 tonnes centper or 9.1 down 2010),thou (457.4 timber - modities transported were oil and crude petroleum products (2.1million tonnes cent or 25.1per over freight accountedExport for 5.2million tonnes in 2011(cf. 4.7million tonnes in 2010). The combulk - showed domestic therecovery of consumer market. (4.2millionfertilisers tonnes), and plant products (1.3million tonnes). Growth in domestic freight ties transported were oil and crude petroleum products (6.2million tonnes), chemical and mineral In 2011, domestic freight constituted 15.0million (cf. 14.1million tonnes in 2010). The commodibulk - cent down theprevious year. a little and constituted 13.2million tonnes thetotal cent rail freight (25.2per of structure) or 8.0per total rail freight structure cent (26.8per over 2010). Compared to 2010, transit freight had declined considerable increase in 2011; it accounted for 18.9million tonnes and the made cent up 36.0per of thetotal cent rail freightper of structure cent (10.4per over theprevious year). Import freight saw a thetotal cent rail freight(28.7 per of structure). freight accounted Export for 5.2million tonnes or 10.0 Compared to 2010, domestic freight had increased by cent 6.6per amounting to 15.0million tonnes 2010. In 2011, AB Lietuvos 52.3million tonnes freight, carried Geležinkeliai of cent 8.9per over of arise F t Services reigh 10 20 30 40 50 60 10 20 30 40 50 60 0 0 C ontainer volum ontainer 40.1 53.5 ail freight structure in 2011 in structure freight Rail F

2007 2007 volum reight 36.1 % 34.0 55.0 m 2008 2008 tonnes illion th T Export D Import ous. TEU 25.2 % ransit om iking Viking on carried es 39.5 42.7

2009 2009 2007–2011, in es estic 48.1 41.8 28.7 % 2010 10.0 % 2010 52.3 56.0 2011 2011 0 10 20 30 40 50 60 0 10 20 30 40 50 60 • In 2011, 4.7million passengers atotal of were theCompany using of theservices including: this country in transit.the territoryof lines. therailway 20trainsA total of of companies from other countries came to Lithuania or passed national lines: 187trains on domestic lines and 4trains (made up by theCompany) on international In 2011, AB Lietuvos passenger Geležinkeliai trains operated on 52domestic lines and on 18inter P • Vilnius–Ignalina (or back). the route Ignalina–Visaginas (or back), lower while fares were offered forthewhole year theon route and Kaunas–Lazdėnai (or back); 6months 1June of for till aperiod reduced fares were charged on 18 May a symbolic 1litas pricewas of for set a bicycle carrying on theroute Vilnius–Lazdėnai (or back) trains were operated on theroutes Vilnius–Airport–Vilnius, Vilnius–Kaunas, Kaunas–Vilnius; from revenues were as follows: during the European Basketball Championship 2011 on days certain of extra factorsOther contributing to theincrease in passenger numbers as well as in thegrowth passenger of Vilnia, Kaunas–Kazlų Rūda–Marijampolė–Kaunas, and Kaunas–Kybartai–Kaunas. discount to travel on theroutes Vilnius–Šeštokai–Vilnius, Naujoji Vilnia–Vilnius–Kaunas–Naujoji nominal coupons to thefestival ‘Ką Galvoja Muzika’ (What Music Thinks) were offeredcentper a30 domestic all class trains of on theroute Vilnius–Klaipėda–Vilnius; the in Septembertheholders of during The Culture 2011 ShipsTall Regatta centper a30 discount was applied fortravelling theby 2nd offered centper a50 discount travelto theby 3rd domesticall classtrains; of inKlaipėda in August domestic trains; in August theparticipants in thefestival ‘Roko Naktys 2011’ Nights (Rock 2011)were 2011’(Music passengers 2011)all with thetickets to said festival were offered centper a50 discount on eration with theorganisers different of events was promoted: in July duringthe festival‘Tamsta Muzika Within theframework thepassenger loyalty of programme various actions were out carried and coop- depending on thediscount –standard type or variable –chosen by thepassenger. sengers with loyalty cards were offered a discount 2centper to 5 theticketson of on domestic lines In order to attract more passengers, the passenger loyalty programme was conducted in 2011. Pas- Vilnius on connecting route Vilnius–Kaunas–Šeštokai and back. cent a30per discountDecember was applied to thefares for the section Vilnius–Kaunas or Kaunas– was applied to train tickets; also, cent 20 per reduced fares were offered forschool learners. From 11 action for the young people to travel by train at reduced prices), during which cent a 30 per discount mas. actions were Certain out carried also e.g. ‘Ei, jaunime, nežiopsok –traukiniais pigiau važiuok!’ (an centa 20per discount over Easter, St. John’s Day, International Car Free Day, Saints’All Day and Christ- plied for travelling on domestic trains on differentoccasions: per cent a 50 discount on 11 March and In 2011, theCompany was successfully out carrying several marketing projects. Discounts were ap- Compared to 2010, passenger revenues went up by cent 10per in 2011. passengers The in 2011had increased carried number of cent,per by 6.7 compared to 2010:

asseng 3.8 million passengers on domestic trains; and 0.9 million passengers on international trains. er Services - 100 20 40 60 80 0 0 1 2 3 4 5 46.0 3.5

2010 P International 2010 m. transportations in assenger 50.4 transportations 2010–2011, m P Domestic 2010–2011, LTL m assenger revenues in in revenues assenger 2011 3.8

29.1 2011 m. Domestic 2010 0.9 transportations 32.8 2010 m. 2011 illion people illion

1.5 International 0.9 2011 m. illion

Other 1.2 4.4

76.6 2010 m. 2010 Total 4.7 Total 84.4 2011 m. 2011

AB lietuvos geležinkeliai / 2011 / annual report 0 20 40 60 80 100 0 1 2 3 4 5 17 18 • • of the CompanyThetraction fleet consisted of the following in2011: pollution. ment portant factors determining traffic intensity, and efficiency safety, wellas the as factors relatedto environ- Timely and qualitative preparedness therolling of stock of AB Lietuvos themost is Geležinkeliai one of im- Rolling Stock • • • • • • freightThe wagon fleet consistedof 9,212 wagons in2011: freight performancetrainsThe of was 28,600grossmillion in 2011,tkm centper 10.2 riseover a of 2010. The averagegross freight a train weight of was 2,794 tonnes, centper up 1.3 over 2010. The freight average locomotivesrundaily of km,was 550.8 down centper from 1.6 2010. The operating from slightly decreased speed km/h in 2010 47.7km/h in 2011.to 47.5 of locomotivesfreight efficiency was 1,093.1 thousand grosstkm (cf. 1,125.9 thousand grosstkm in2010). On average 72freight locomotives were operated daily in 2011(cf. 61locomotives in 2010). The average daily gous to ČME-3Mproduced by CZLOKO. theRussianof shunting locomotive TEM-18, as well as thepower unit and management modules analo- Vilniaus Lokomotyvų Remonto Depas; were they manufactured using themain frame and undercarriage In 2011, shunting 6new locomotives TEMTMH were purchased from asubsidiary company UAB Containers. and Stock at Kaunas, Klaipėda, and Bugeniai. Traction rolling stock registered has been Rolling with theRegister of The locomotives haveallocated tobeen VilniusRadviliškis or LocomotiveDepots withtheir workshops • • • • manufactured at PESA Bydgoszcz Plant, Poland, in the same year. In 2011, theCompany purchased and put into operation 5railcars atotal in passenger 620M of services • • • Thepassenger rolling stock fleet consisted of the following in2011: with heatinsulating bodies. car In order to use freight wagons efficiently,of 26 arefrigerator total carswere readjusted to covered wagons repairsScheduled to wagons are conducted at Radviliškis Wagon Depot. (2) extension thelife cycle to of existing wagons. In 2011, thelife cycle was extended to 649freight wagons. freight The modernisation of wagonsbeing is conductedtwo in ways: (1) purchase new wagons, of and for used this purpose.been railwayof administrations from other countries scientific institutions specialised and knowledge of have AB Lietuvos its focuses Geležinkeliai attention on freight themodernisation wagons. of The experience

44 freight locomotives ER20CF(produced by Siemens); locomotives 2M-62M, and 6locomotives 2M-62UM with internal combustion engine Caterpillar; 33 freight locomotives 2M-62, 25locomotives 2M-62Kwith internal combustion engine D49, 23 which 2standard gauge locomotives; 23 freight locomotives M-62 and 16locomotives M-62K with internal combustion engine D49, of TEP-70BS; 2 passenger locomotives TEP-60, 4passenger locomotives TEP-70, and 4passenger locomotives 13 shunting locomotives TEMTMH; Caterpillar; 19 shunting locomotives ČME-3, and 22locomotives ČME-3Mwith internal combustion engine 26 shunting locomotives TEM-2, and one locomotive TGK-2. 1,830 covered wagons, which 10standard of gauge wagons; 227 flat wagons; 1,864 low-sided wagons; 1,849 tankwagons for light petroleum carrying products; 57 electric train cars. 57 electric 92 diesel train cars; 93 passenger cars; 3,442 other wagons. 10000 15000 20000 25000 30000 5000 1000 1500 2000 2500 3000 100 200 300 400 500 600 500 0 0 0 27,571 P 520.8 2,652 erfor

2007 2007 2007 A A verage dailym loco eight of of verage weight gross m ance of freight trains, trains, freight of mance 27,901 520.3 2,678 a freight train, t train, a freight m tk gross illion 2008 2008 2008 run, km run, 23,211 2,712 539.8 2009 2009 2009 25,953 2,756 559.5 2010 2010 2010 otive otive 28,600 2,794 550.8 2011 2011 2011 0 5000 1000 1500 2000 2500 3000 0 500 100 150 200 250 300 0 100 200 300 400 500 600 0 0 0 0 0 0 0 0 0 0 • • the whole European transport system cross Lithuania: theterritoryof system in this country.two The International TransportCorridors having importancean especial for technical capacitiesskilled –theseare thefactors that make aconsiderable impact on thetransport The convenient geographical location, well-developed railway network,Seaport, Klaipėda ice-free INFRASTRUCTURE LITHUANIAN RAILWAY • following major projects financed partly fundstheby EU werebeing implemented: Themodernisation saw 2011 year andfurther developmentpurposeful railway of infrastructure. The bridges. doubleand of tracks; 380.4km there are 109railway stations, 536level crossings, 429overpasses and LithuanianThe total length railwayof lines makes lines km,up 1,767.6 electrified which km 122 of of • • • Lithuania (Lithuanian Parliament) as astate importance. priority particular project of the Lithuanian government as an important economic project theRepublic and by of of theSeimas The total the projectbe valueto is of expected LTL 1.9 billion. acknowledgedbeen Rail has Baltica by struction works are to financed be by Lithuanian and TEN-T budgets as Cohesion theas well Funds. The design forthe reconstruction is be financedto by Lithuanian and TEN-T budgets, whereas con- on railways from road transport by developing intermodal freight flows. rail freightport transportations on thenorth–south network and help will to attract freight volumes freightthe first be will transport development project easterntheon Sea;the Balticcoast it will supof - and comfortably theBaltic States and Western European countries by theshortest way. for Baltica Rail theEUrail transportof network. create will Baltica Rail thepossibility for passengers to reach safely transport connections linking theBaltic States with Poland through and further Poland with therest is Baltica to have Rail main behind idea awell-developed south–north rail transport axis with modern AB Lietuvos is Geležinkeliai theproject promoter Baltica, Rail of theEUTEN-Tpriority project. The extra entrance to Pauostis track area was commenced in 2011. EC, track Second EC, Nemunas track area ECin Klaipėda, track Rimkai area, and the construction of tracks,ing of 28.5km reconstruction works were started at Perkėla track terminal) area, (ferry Anglinė Station was reconstructed, thetrack area at Draugystė Station was reconstructed being further cover railway and Klaipėda StageKlaipėda IIof junction development.pedestrian The bridge Klaipėda at were implemented in 2011: reconstruction/construction railway of overpass over Varnėnų Street in attentionSpecial was paid to the development railway Klaipėda of junction. As many as 2 projects 2012. Corridor IXB Vilnius Bypass Kyviškės–Valčiūnai. The contract works arescheduled be to in started were signed for amajor rail infrastructure modernisation project Tracks Second Construction of on In 2011, 6technical projects atotal of were completed. Agreements on contract works and assistance • Corridor IXB(Kiev–Minsk–Vilnius–Šiauliai–Klaipėda), and IXD(Kaišiadorys–Kaunas–Kalin - Corridor I(Helsinki–Tallinn–Riga–Kaunas–Warsaw); Arranging theTraffic ManagementCentre (the technical project completed, the equipment manu- Modernisation signalling, of power supply and track equipment on theline Kaunas–Kybartai Reconstruction and modernisation of infrastructure on andReconstruction modernisationCorridorIA of Radviliškis– section Reconstruction of track structuresReconstruction of on theconnecting line Klaipėda–Pagėgiai (reconstruction 4 of Installation infrastructure of diagnostic systems (atrack recording car purchased). ingrad). factured and delivered); ling and power supply installations manufactured and delivered); (track areas at modernised Rokai and Jiesia stations, reconstruction the bridge started, of signal- works on performed 20km); Pagėgiai–State Border (superstructure replacement, track drainage and subgrade arranging bridges completed); -

AB lietuvos geležinkeliai / 2011 / annual report 19 20 quality of the services provided. services the of quality andtimised automated, this reducing thecosts for maintenance said equipment of and improving the equipmentto materials electrical new and technologies were used, thecontrol equipment of was op - in line with thespecified reliabilitycategories improveand will its quality. While conducting repairs ducted to power supply installations and equipment ensure will reliable power supply to railway users wiring networks at 21stations, and lightning protection devicesat 41railway objects. Repairs con- lines, 10kVoverhead of 29.5km and cable lines, 0.4kVoverhead of 6.9km and cable lines, internal equipment,As to electrical there were reconstructed fully 5 transformer substations, DLB of 5.4 km contact not only thesignalman but thetrain also dispatcher. the station in servicing andstationcharge thestaff enabled of automationequipment andtracks to com equipment and speakers installed). Thisallowed improvingsound communications quality of at Sound connections at Gudžiūnai Station were cables laid, (about of modernised 4km inter modern exercised directly from thesignalman’s post. terlocking; thus station management, switching points and of control the switch of position be will Pabradė Station thelockable turnout and signal interface equipment was replacedin- by electrical As many as 17manually operated turnouts were replaced by turnouts interlocking. with electrical At as well as reducing traffic management costs and improving occupational safety. allowing to increase train traffic capacity, trainspeeds, of train traffic safety andotherof that vehicles, single-trackof semi-automatic block system was replaced by single-track automatic block system, this Within theframework 2011projects related of and automation to electrical sectors, 10.02km atotal of etc.). improved visibility restored, guardrails turnouts were replaced by ones; new 8level crossings were reconstructed (thecover was replaced, trackducted was in 2011: of 126km atotal repaired; of worn of rails 38km andworn 85units of In order to improve railway performance and to ensure traffic safety, different trackrepairs were con- INFRASTRUCTURE LITHUANIAN RAILWAY - opportunities. management, stevedoring of part companies and Seaport at Klaipėda AB Lietuvos interaction Geležinkeliai companies.nology The research work was conductedwhich examinedthe locomotive operation,traffic decisions, theCompany is cooperating with Lithuanian and foreign scientists, transportation- and tech- Following ondevelopment strategy the technical and searching for justified and economically technically in 2011. started. The information infrastructure technology and computer networks developed werebeingfurther establishing Traffic thenew ManagementCentre was completed and approved, and the contract work was systems Stokis, Opkis and Krovinys (Cargo) were expanded with functions. new The technical project for LTLA total of 12.8 million was invested in the development information of in 2011. technology Information operation 2011. by theendof Technological equipment was acquired for maintenance rolling new of stock. mented. double-deck trains, 4modern A total electric of railcars 12new and in diesel trains 4new had been passenger rolling stock. Thepassenger train fleetrenewal programme being in2007further started imple is - LTLA total of 49.0million was invested in in 2011for passenger renewal services and modernisation of equipment, depots and fuel freight yards. ronmentally rolling friendly stock. Freight wagons are being modernised, also as well as depot technological 2011.the endof The locomotiveonly modernised been byhas acquiring fleet contemporary,frugal and envi- fleet: locomotives 15 new TEM locomotivesTMH and 22 modernised in been ČME-3Mhadoperation by Europe.tral Company The way also half throughis the modernisation programme for shunting locomotive therefore, at present theCompany’s locomotivethe most is fleet one advancedof Eastern in fleets Cen- and quired, 29locomotives 2M-62modernised, 25locomotives 2M-62and 16locomotives M-62re-engined); locomotivetrunk fleet renewal programme in 2004–2010 (44 Siemens manufactured locomotives were ac- In 2011, LTL atotal of 136.9million was invested in freight services.Company The was implementing the further implemented. services, logistics projects for the establishingof public centres logistics in Vilnius and Kaunas are being are out. being carried In order to increase railway transport competitive capacities and to expand therange ranged, signalling installations Kaunas–Kybartai on thesection are being modernised, and other projects Infrastructure diagnostic systems are being implemented, Traffic thenew ManagementCentre being is ar studies are being prepared, and design works for thereconstruction other are sections of being conducted. track parallel thefirst thesection on struction of section of Mockava–Šeštokai was completed, feasibility Lithuania (Lithuanian Parliament) in 2011 as astate importance. priority particular project of The recon- Rail Baltica projectThebeing is implemented,which wastheRepublic acknowledged Seimas theof of by Klaipėda–Pagėgiai. the line Naujoji Vilnia–Kena–State Border with Belarus, and the connecting modernisation railway of line of IXB, electrification Corridor on tracks second of bypass, of Vilnius construction construction junction, projects were out being carried in 2011: design and constructions works, development railway Klaipėda of andborder to to improve withKlaipėda Belarus freight traffic conditions this on corridor, the following ernment as an important economic project. In order to increase railway corridor capacity from theState East–WestThe transport corridorbeing is developed, acknowledgedwhich been has theby Lithuanian gov- tasks delegated by theState. term infrastructure modernisation and development programmes as abasis serving for out carrying the 386.4 million, which accounted more of than half for theEUfunds.Company The is implementing long- way infrastructure. During theyear 2011, theRailway Infrastructure Directorate invested LTL atotal of In 2011, as in previous years, theCompany mostly invested in themodernisation and development rail - of which LTL thetotal 358.3million cent or invested 59.0per of funds –i.e. –were more than own half funds. In order to achieve strategic goals, in 2011 the Company invested in Lithuanian railways LTL 606.9 million, of implemented. being is fleet renewed, and advancedtransportation-related IT and intelligenttransport systems are being railway modernised, infrastructureis being public centres logistics are established, being rolling the stock to ensure successful integration Lithuanian of railway transport into international transport systems, the work performance, increasing traffic safety ecological and sustainability. In order to achieve these goals and provided entities, to and individuals legal services services, developing op - - 100 200 300 400 500 600 700 800 0 ietuvos G AB Lietuvos funds according to directorates, todirectorates, according funds 232.3 138.4 475.5 72.8 32.0 2009 59.0 % Other P Freig D Rail assenger D assenger irectorate invest LTL m eležinkeliai invest eležinkeliai w tructure of of Structure Borro funds EU m State fro Funds budget Own funds ht D ht ay I 370.4 179.5 638.7 83.9 4.9 m illion nfrastructure nfrastructure irectorate 2010 ent in 2011 in ent 3.1 % ed funds wed irectorate 2.5 % 35.4 % 386.4 136.9 606.9 49.0 34.6 2011 m ent ent

AB lietuvos geležinkeliai / 2011 / annual report 0 10 20 30 40 50 60 70 80 21 0 0 0 0 0 0 0 0

AB lietuvos geležinkeliai / 2011 / annual report 24 management plan was approved. Operationsthe Emergency Centre was established at AB Lietuvos and Geležinkeliai theemergency tions, orders by theDirector theFire theInterior), under of andDepartment theMinistry of Rescue In 2011, Lithuanian as per legislation (amendments to the Law on Civil Protection, government resolu- withshall be thethree white signals turned on. was introduced i.e. the traction rolling stock running on railway lines or shunting at railway stations sions theLaw on Railway of Traffic Safety and in order to ensure trafficrail safety, a new requirement On 1June regulations 2011thenew for railway traffic signalling came into effect.Following the provi- issued 2012. asafetyLatvia Part certificate theRepublic in beginningthe at Bof of of LatvianThe StateRailway Technical Inspectorate approved AB LietuvosGeležinkeliai application and safety certificate for providingLatvia.freight theRepublic andpassenger the on territory of of services In 2011, the documents were being prepared and harmonised at the Company for obtaining Part a B of goods). gauge railway network (among tankwagons them and other wagons designed for dangerous carrying pany’s out technical supervisor for to right functions carry of the freight wagons running on 1520mm sued to the Company by the State Railway Inspectorate in 2011. This certificate confirms the Com- Complying with therequirements EUdirectives, of awagons technical supervisor certificate was is- reported in 2011. ployees from arailway in another undertaking country. Totally 6accidents on connecting tracks were owing to the faultemployees of from other companies, and one accident owing to- the fault em of As many as 511 emergencies were reported in 2011. 3accidentsA total and of one incident occurred transport against any other transport modes. ignoredthey themost important for rule safe trafficlevel at the crossings, i.e.of therailwaypriority 2 people and perished 4were injured. trafficAll accidents occurred owing of to the faultmotorists as 11collisionsA total of with road vehicles were recorded at thelevel crossings in 2011, during which AB Lietuvos did not staff Geležinkeliai suffer any injuries or fatalities. 72rail accidentsA total in 2011. of occurred In 47accidents 29people and perished 23were injured; year. previous In 2011, rail accidents thenumber of recorded in Lithuania remained more or less thesame as in the Safety Traffic exceeds noiseexceeds limit values. CompanyThe is constantly implementing noise abatement measuresthe in placeswhere railway noise Company. the the emissions releasedfrom stationary pollution sources was conducted in further thesubdivisions of The monitoringgroundwater of andtheeffluents released from wastewater systems as of well as that lion asfor tax pollution from stationary and mobile pollution sources. waste was delivered to waste management companies.Company The paid approximately - LTL 1.8 mil tems. 500thousandA total of cubic wastewater metres of was treated. Hazardous and non-hazardous In 2011, theCompany operated totally 74surface-, industrial- and domestic wastewater treatment sys - said laboratory wouldof allow annual savings more of than LTL company 1.0million of funds. nents. The centralisation hazardous of and non-hazardous waste management andthe establishment toscheduled established be in order to conduct independently research in theenvironmental compo- ment for maintaining wastewater treatment plants. Theenvironmental researchlaboratory also is centralise themaintenance operating of wastewater treatment plants and to purchase equip modern - wastewater pollution and consequently environmental payments, tax it is foreseen at theCompany to CompanyThe is planning to establish a waste management sitefuture.the in near In order to reduce environment, as well as using properly or natural energy resources etc. Company employees, reducing thenegativecaused effects Company’stheby economic activity theon management, most efficiently restoring the environment after accidents, developingecoculture in The EnvironmentalCentre established Companytheat in 2011 is responsible for organising waste Company’s the among are priorities. Saving resources, energy reducing emissions and waste as well as preventing water and soil pollution PROTECTION ENVIRONMENTAL

AB lietuvos geležinkeliai / 2011 / annual report 25 26 than thatthe in directive. specified manager is allowed to impose charge ahigher for freight transportations from/to thethird countries rated from thedominant narrowed. has been carrier In order cover to fully thecosts, theinfrastructure statemember athird with country. theterritoryof The listinfrastructurethat - sepa be of objects shall ture with thegauge that is differentfrom the European standard gauge borderconnecting stations in a ing theinfrastructure charging and capacitythe in allocationdirective specified for railway infrastruc- gauge is differentfrom the European standard gauge. possibilityThe ensuredbeen of has also exclud - infrastructureof charge for rolling stock for used communication with thethird countries, where the clause as specified possibility hastheas been well has remained waivingof theenvironmental part Successful collaboration with CERis proved also by thefollowing facts: thevalid transit exception eration the European with CERand members of Parliament from Lithuania. Baltic States with 1520mm gauge railways would assessed. be Thisbeing is goal pursued in close coop - specific features and characteristicsthe business of model applied in international trafficrail inthe market and splitting railway theactivities of undertakings.Company’s The is goal to achievethat the on thefuture EUrailway of transport therail sectorrevealingliberalisation passenger of of theaspects countries that use the1520mm gauge railways. In 2011, theEuropean Commission conducted astudy CERworkingactivities of group where submitted they proposals favourable to theCompany and EU working group on developing theFourth Railway Package. Company representatives tookin the part theworkingthe activities of group on therevision theEUdirective of package and participated in the ture Companies), which our Company since a member has been 2003. Our specialists contributed to attentionSpecial was paid CER(Community European to theactivities of of Railway and Infrastruc - signalling and communication installations, traffic management equipment, etc.). in the seven UIC working groups (e.g. on theissues related to theelectronic passenger ticket, railway assemblies held in Warsaw and Paris respectively.Company The expressed interest participatingin In 2011, theCompany was represented in thetwo UIC generalassemblies: and in the78th general 79th in international traffic (PGW and PPW). reviewing thereference documents and analysing using of freight therules wagons and passenger cars cooperation the European between Commission and OSJD; theCompany’s position was presented on sion on theOSJD reform issues approving while thedraft memorandum mutual understandingof and In 2011, our specialist actively staff participated the in meeting organised theby EuropeanCommis - freight wagonsof etc. passenger timetables, the train composition plan, settlement between railway undertakings for the use normative documents on operating thesingle freight wagon fleet,freight transportations, approving meetingthe 55th held in Armenia. The following issues were discussed theatsaid meetings: preparing In 2011, theCompany’sparticipated specialist staff the in 54th RTC meeting held in Finland and in (Council for Railway Transport CISStates). of ing Centre), CCTST (International Coordinating Council on Transsiberian Transportation), and RTC mittee), CER(Community European of Railway and Infrastructure Companies), (CentralClear BCC eration Railways), of UIC (International Union Railways), of CIT(International Transport Rail Com- In 2011, theCompany maintained active cooperation further with theOSJD (Organisation for Coop- customers. or ship with neighbouring railways and establishment business of relations with potential new partners international transport organisations, projects, their as well as on thedevelopment relation partner of - Successful international cooperation maintained by theCompany on is based its active participation in Relations International - electrification of the section thesection Molodechno–Gudogai–State electrification of Border–Kena–Naujoji Vilnia. organising thecommunication by passenger high-speed Minsk train between and Vilnius and on the related to organising shuttle train Saulė, Lithuanian themeeting of and working Belarusian groups on Railways Border Commission, Lithuanian themeeting of and Kazakhstan working group on theissues freight wagonuse of and fleet containertraffic were ofdiscussed; meeting the Polish andLithuanian Latvian, Moldovan and Ukrainian railway undertakings, where theissues relating to prospects for the ternational by carriage rail; themeeting with theadministrations Lithuanian, of Belarusian, Estonian, the representatives from Russian railway on undertaking implementing cooperation in organising in- scientiststion of from Dnepropetrovsk National Railway Transport University in Ukraine and with munication by High-Speed Passenger Train Minsk between and Vilnius; themeeting with thedelega- Lithuanianheads of and railway Belarusian on undertakings mutual project Organisation theCom- of bouring countries, bilateral anumber meetings of were held at theCompany in 2011: themeeting of In order to ensure better cooperation with business and partners academic community from- neigh nies paid visits to AB Lietuvos Geležinkeliai. Italian,ists of Spanish, Ukrainian etc. railway and undertakings representatives from logistics compa- managing directors Russian, of Belarusian, Latvian and Polish railway as well undertakings - as special Russia, Ukraine and Germany. It should noted be that leading of the officers European Commission, In 2011, our representatives visited trade fairs, exhibitions and conferences in Italy, Kazakhstan, China, Parliament on smooth implementation passengers’ of and rights obligations. international passengers of carriage and luggage by following rail (CIV) theEuropean theregulation of SMGS consignment note were improved being further at CIT, as well as adjusting concerning therules rules concerningThe international goods by railwhile implementing carriage of the common CIM/ there. discussed were also stan and China. The issues related theto extension of Viking route (connecting Sweden and Ukraine) trains Viking and Mercury and established business relations concerning freight flowsfrom - Kazakh Transsiberian Transportation (CCTST) session plenary where presented they shuttle theprojects of In September2011, our representatives participated in theInternational Coordinating Council on performance. public services organisers signed adeclaration drawing thegovernment attention to themeasures ensuring effective conference; it received considerable attention from politicians and local themedia. The conference The problems in faced publictransport in Lithuania and EU countriesother were addressedthis in Cost? jointly organised by CERand Vilnius Technical Gediminas University on 22November 2011. An important event was theinternational conference EfficientService Public Transport: At What

AB lietuvos geležinkeliai / 2011 / annual report 27 28 • • • • The following information systems developedwere beingin 2011: further protection was structure wasinternet modernised. acquired andimplemented, of perimeter andthe plemented. The hardware andsoftware of the perimeter of the internet centre that and data perimeter The project for upgrading and development IT infrastructureequipment technical security of was im- data communication local sation of networks in 56buildings belonging to theCompany. Radviliškis–Kaišiadorys and Kužiai–Bugeniai was acquired, as well as that for- necessary themoderni network. At this stage, thedata network equipment for necessary transferring data on thesections The developmentsaw 2011 year further Company’s the and modernisation of data communication and installation cargo accounting of system, as well as ensuring information security. the Company. Major ITprojects covered theestablishment data communication of network, thedesign In 2011, theimplementation theITprojects launched of in previous years was continued further by Technolog Information within this system are being further installed. finance,of taxes, and business management.modules The designed for investment management was made in line with the amendments to legislation relating to the accountability and accounting mySAP (finance accounting and business management system):the configuration supplement applications for transportation were designed and installed. freight transportations). Changes international to the module of freight trafficplanning andother the transition to the2009version MESPLAN of (automated planning system for international freight transported on Lithuanian railways): thesoftware configuration necessarywas made for KROVINYS (information system for the document management and accounting controls the of ing theinformation registration, of re-registration and removal own wagons of in wagon module; driver’s working time and locomotive consumption) fuel were made, also as well as those regard- system for wagon transfer), KROVINYS (Cargo), LEIS-LG (information system for accounting patibility information of exchange OPKIS, between STOKIS, VPSKIS (computerised information train acceptanceof to thedispatcher’s were section made. Software changes regardingthe com- dispatcher’s of collection notes, submission archival of data and transmission thenotification of OPKIS (operative computerised information system for haulage): software changes relating theto Kėdainiai, Šilainiai, Rimkai, Marijampolė, railway Panevėžys Kretinga,stations; and Šiauliai STOKIS (acomputerised information system for stations): thesystem was installed at Gaižiūnai, y 14.5 million of investment14.5 million of funds were for allocated improving working conditions. motive depots. LTLA total of 17.7million was spent on occupational safety and care. health LTL Extra Rooms for relaxing for train drivers were arranged at Vilnius, Kaunas,- loco Radviliškis and Klaipėda for Train Drivers’ Medical Examination Prior to theJourney was adopted in 2011. Careful attention was devoted to solving train drivers’ safety and care health issues. ProcedureA new occupational risks was declinedby cent. 33per Occupational risks were assessed at 5,137workplaces. The workplaces number of with unacceptable Ignalina. have leisure time with their family members. A summer camp for the employees’ children operates in in Giruliai,training, thestaff rehabilitation and recreation centre is locatedwhere theemployees could institutions;cal theCompany financedthe partly diagnostic examinationsthe staff. of seaside At the attentionSpecial was given to employees’ care: health cooperation agreements were signed with- medi expenses. In 2011, as many as 166employees completed studies. their or to direct their jobs. Following thesecontracts, theCompany reimbursed study up cent to 50per of the studies were signed with 11employees who were studying specialities related to railway transport In 2011, 485employees atotal of were studying at universities and colleges. Contracts for financing for training purposes. LTLA total of 1.3million was spenttraining. on staff the EUproject to implemented be with theLithuanian Confederation Industrialists of were allocated attendedees thetraining courses, cent 45per over of arise 2010. Company funds as well as those from Considerable attentiontraining paid to staff has been and retraining. In 2011,employ 7,021 a total of - Company’s Managing Director. Also, 18employees were awarded nominationsBest The ……. in 2011. Lithuania, theRepublicthe Chancellor of of and 75employees received letters appreciation of from the preciation from theLithuanian Transport Minister, 7employees received letters appreciation of from employees were awarded theLithuanian Railways Merit Award, 10employees received letters ap- of 28employeesA total of were awarded honour thebadges of for performance good results in 2011, 64 tivity was by determined increased transportation volumes in freight and passenger services. cent11.3 per over 2010(cf. 1,390.4thousand tkm/employee in 2010). The increaselabour in produc- productivity according to relative production was 1,548.2thousand tkm/employee in 2011, of arise sand in 2011, cent up 16.7per over 2010 (cf. LTL 132.3thousand employee per in 2010).labour The labourThe productivity expressed by revenuesfrom coreemployee activitiesper was thouLTL 154.4 - in the Company theaverage exceeded in thecountry monthly by cent. even salary 40per increased to LTL 2,931in 2011, LTL of arise cent 209or 7.7per over 2010. The average monthlysalary increased by cent. has been 5per asalary the variable of part Therefore,the average monthlysalary asalary.the variable of part 1JulyAs of 2011with transportation theincrease of and passenger flows, salary, whereas theresults thework of by performed an employee and initiatives their are motivated by value a position of and the qualifications for necessary it determinethe of a amountthe fixed part of was security theimprovement theprioritysocial elementsOne of in theremuneration system. The company among staff. experience intranet. It helps to improve labour regulation relations thequality of of and contributes to sharing Since April 2011 the employment relations information system installed on has the Company’s been tre was established. were implemented in 2011. Theenvironmental function was centralised andthe Environmental- Cen In order to make theCompany’s performance more efficient, changes in the organisationalstructure CompanyThe hademployed thous. 10.5 people 2011. theendby of RESOURCES HUMAN 100 150 200 50 0 134 2007 LTL/EM THOUSAND L our productivity,abour 149 2008 113 2009 PLOYEE 132 2010 154 2011

AB lietuvos geležinkeliai / 2011 / annual report 0 50 10 15 20

29 0 0 0 30 Lithuania and other countries. Lithuanian authorities, Seaport, Klaipėda VPA Logistics, administrations railway of in undertakings within 13days. The this realisationproject the is of effectiveresultseveral-year cooperation of among ania to Antwerp, thesecond major city in Belgium. Having started in China thetrain reached Lithuania tion, transporting computer-aided equipment by transit from Chongqing China through city of Lithu- On 10 November, the shuttle container train Saulė (The Sun) wassolemnly met at Railway Kena - Sta ment), and Transmashholding, Russian the Federation. operation with CZLOKO, theCzech Republic (project author and manufacturer locomotive of equip- motive Repair Depot. It was manufactured by UAB Vilniaus Lokomotyvų Remonto in close Depas co- On 29September, shunting thenew locomotive TEMTMH was solemnly presented at Vilnius- Loco tradition. ning reinstatedof independent Lithuanian railways and celebrated Railwaymen’s Day, which has a long- run On 27 August, AB Lietuvos andtheir family staff Geležinkeliai markedmembers the 20th anniversary more than LTL 21million, which almost of LTL 6million came from theEUfunds. bridges were reconstructed. also Šeštokai–Mockava The thesection reconstruction of amounted to level crossings, water outlet, level crossings, repairing culverts, and building elements). As many as 3 covered this section of 7 groups works of (permanent way, superstructure, installation temporary of different gauges – western (1435 mm) easternand (1520 mm) – were interlaced. Thereconstruction Šeštokaibetween and Mockava waswhereRail Baltica thefirstthetracks with reconstructedsection of On 11 August, thecontract Šeštokai–Mockava section Baltica work Rail of was completed. Thissection scanning technique. themostis one machines of modern designed for measuring laser with track thehelp geometry of by Plasser &Theurer, Austria, – was delivered to RailwayVilnius Station. Thisself-propelled vehicle On 15June, purchase thenew of AB Lietuvos –thetrack Geležinkeliai recording car EM140produced were encouraged to followrules. thetraffic were out carrying apreventive action at level crossings, during which themotorists and pedestrians On 9–11June, AB Lietuvos in cooperation staff Geležinkeliai with Lithuaniantraffic police officers stopsnumber of and thestopping were Belarus times on reduced. theterritoryof passenger control procedures were accelerated at Gudagoi and Kena (Belarus) railway stations, the close Lithuanian cooperation thespecialist Belarusian between of and staff railway undertakings:the the two capital cities during 3hours, i.e. by 51minutes faster than ever before. It was theresult of On 29May, thetrain from Minsk to Vilnius for thefirsttime covered between a distancekm 205 of renewed exposition. tion. Itthe on is based thesecondstation. floor of The museum now has morespacious facilities and a On 26May, theLithuanian Railway Museum reopened its doors to thepublic at Vilnius Railway Sta- conditions. working and possibilities career as well following research was conducted: thecompany image, innovation and were modernity assessed, as etuva (a student organisation) and career event Tavo Kelias 11 (Your Career 11). During the voting the voting for themost attractive employer was organised by CV-Online in cooperation with AIESEC Li- wasGeležinkeliai recognisedas themost attractive employer in theLithuanian transport sector. The the dataThe research of conducted in January anddemonstrated February that AB Lietuvos Major Eventsin2011 gifts – tickets – gifts Railway the to museum as theas well reflectors. and encouragement development for further from theorganisers and were presented with symbolic ners were announced thechildren all while involved in thecontest received theacknowledgements ‘Traukiniu Kalėdos’ atrieda (Christmas Train Is Arriving). More than adozen winners and prizewin- sent by more than two thousand Lithuanian children to AB Lietuvos decoration Geležinkeliai contest thewaitingDecember: rooms at Vilnius and Kaunas railway stations were decorated with theworks 2011. company UAB Vilniaus Lokomotyvų Remonto Depas, with its award The Most SuccessfulCompany Director of AB Lietuvos Geležinkeliai, and Valentas Stadalnykas, Managing Director asubsidiary of On 16December, theLithuanian Confederation Industrialists of presented Stasys Dailydka, Managing TEM TMH. Lokomotyvų Remonto Depas, were awarded for gold medal manufacturing ashunting of locomotive Geležinkeliai, and Valentas Stadalnykas, Managing Director asubsidiary company of UAB Vilniaus Lithuaniathe Republic (Lithuanian of Parliament). Stasys Dailydka, Managing Director of AB Lietuvos On 16December, theLithuanian Product the of Year 2011award ceremony was held at of theSeimas Vilnius. organised by CER, Vilnius Technical Gediminas University and AB Lietuvos was Geležinkeliai held in On 22November, an international conference EfficientService Public Transport: At What Cost? jointly

AB lietuvos geležinkeliai / 2011 / annual report 31

AB lietuvos geležinkeliai / 2011 / annual report 34 Mana AB Lietuvoslia ležinke Ge Su of the R the of D Rail F OFFICE HEAD T T T of Ministry P he Board he C Supervisory he assenger D assenger reight D reight irectorate sidiary C bsidiary w ay I epu g nfrastructure nfrastructure irectorate b irectorate om lic of Lithuania of lic Structure ement ransport and C and ransport panies ouncil unications ommunications E T I P BalticaRail R the RussianF the nfor echnology C echnology nviron roject D roject epresentative O mation m irectorate ental C ederation entre ffice in Mosco in ffice entre w ,

AB lietuvos geležinkeliai / 2011 / annual report 35 36 auditor’s report Independent Cont’d on thenext page Balance sheets A. A . II I. .1. II .2. II III .3. II .1. III .7.1. II .6. II .5. II .4. II .2. III .7. II B. IV I I. I.1. I.2. . II I.3. I .2. III .1. III .2. II .1. II III .3. II V. V. SSETS .1. . . N PROPERTY INTANGI L tructures and machinery and Structures ASSETS FINANCIAL Vehi I Buildings C m equip property, and Other plant m equip Other N I urrent assets Current D ASSETS -CURRENT NON OTHER PREPAY AND INVENTORIES I N RECEIVAB CURRENT P CASH CASH AND EQUIVALENTS assets current Other invest current Other R T TO receivab Other ASSETS CURRENT OTHER nvest nvest nventories rade receivarade b and and buildings and and repay eceivab onstruction in progress and prepay and progress in onstruction m inco eferred on-current assets on-current on-current receivab on-current on-current assets held for sale for assets held on-current AL c les m m ments SSETS B ents into su into ents ent property ent m su fro les M EQUIP AND , PLANT LE ASSETS ent and tools and ent les les les e tax asset LES sidiaries and associatedm and co bsidiaries sidiaries and associatedm and co bsidiaries m les ents M ENTS ENT ent ent m ents panies panies panies D 4 434799752 4 402498482 1 762001550 1 196289188 4 884754896 mb ece 770 776383 611 536844 449 955144 177 989236 147 810174 146 568914 124 636862 101 702512 28193107 15 124223 27 378336 33 514260 10 875266 10 875266 44 836931 6 301781 6 215303 1 001921 1 001921 1 985955 A 760 132 760 132 86 478 29 471 s of 31 s of - er 2011 er G roup D 4 154388651 4 122800190 1 831762452 1 150656925 4 510322884 mb ece 759 639806 325 982627 355 934233 158 568171 133 456506 129 406426 14 871472 17 557786 36 697603 10 587439 10 587439 21 768374 63 915901 84 675068 44 708504 6 129550 6 021270 3 343291 3 208914 4 043735 A 502 991 502 991 108 280 834 821 22 854 s of 31 s of er 2010 er D 4 487611582 4 347034729 1 734984261 1 196287592 4 855398880 mb ece 743 217446 115 251560 115 165082 609 660212 367 787298 153 432905 120 636602 122 473666 14 936143 29 921326 31 961971 10 389150 10 389150 30 810348 91 872549 79 680423 42 294409 1 001921 1 001921 1 985955 A 498 834 86 478 s of 31 s of 8 178 8 178 - er 2011 er C om pany D 4 206982193 4 068940333 1 800807504 1 150805270 4 501087083 mb ece 734 748783 113 069862 112 961582 324 129384 294 104890 130 150645 111 017937 110 307054 14 823920 23 008930 34 937471 10 148078 10 148078 15 789417 53 601507 71 116082 38 651376 3 343291 A 502 991 502 991 108 280 539 596 45 684 45 684 s of 31 s of - er 2010 er

AB lietuvos geležinkeliai / 2011 / annual report 37 38 Balance sheets(cont’d) C. I. I.1. I.2. D. .2. III .1. III III . II E. IV IV I I. I.1. I.4. I.3. I.2. . II .6.2. II .6. II .5. II .3. II .2. II .1. II .8. II .7. II .6.1. II .4. II .9. II V. .2. .1. . EQUITY SHAREHOLDERS EQUITY hare capitalShare (su m pre Share SU AND GRANTS ther reserves Other Legal reserve RESERVES REVALUATION) (RESULTS RESERVE LIAB P urrent year’s profit (loss) year’sprofit Current (DEFICIT EARNINGS RETAINED LIAB -CURRENT NON F ther accounts paya accounts Other b P T LIAB CURRENT ther taxes Other T P T F borro non-current of portion Current P L I A ther accounts paya accounts Other b LIAB AND TOTAL EQUITY m nco axes payaaxes b rade payarade b rade payarade b our-related liab abour-related inancial borro inancial inancial borro inancial revious year’s profit (loss) year’sprofit revious rovisions repay rovisions ccounts payaccounts b ILITIES e tax liab m ents received ents m iu le les les ILITIES BSIDIES ilities le tosu wings wings bscri ILITIES ilities ILITIES b le and non-current liab non-current le and le and current liab current le and ed) sidiaries and associatedm and co bsidiaries ) wings ilities ilities ilities pany D 4815161 2 719020437 2 515338830 2 515336000 1 319646830 4 884754896 mb ece 846 087629 150 064993 154 880 443 797 399 515017 402 290186 167 204887 40 520900 48 801453 26 929073 17 338746 26 358611 15 892691 57 370013 73 631276 22 851550 51 920126 8 280553 3 507061 8 377581 1 535001 A 14 607 s of 31 s of 2 830 - - er 2011 er G roup D 1385439 2 619474371 2 503995097 2 503991000 1 082333448 4 510322884 mb ece 808 515065 483 188705 443 157748 325 326360 130 582190 37 248569 45 204577 68 889258 70 274697 18 384848 21 631502 10 921937 56 738679 65 999128 48 700232 7 956008 5 327708 5 488662 4 505639 1 857773 A 160 954 532 120 14 607 s of 31 s of 4 097 - er 2010 er D 2 711401333 2 515338830 2 515336000 1 318325543 4 855398880 mb ece 825 672004 147 261050 147 261050 442 517088 399 515017 383 154916 127 736639 40 520900 48 801453 26 929073 16 058391 22 436497 25 114988 15 914891 31 055480 57 370013 66 053731 51 580738 8 280553 2 678491 8 328436 A 14 607 s of 31 s of 2 830 - - - er 2011 er C om pany D 2 614636329 2 503995097 2 503991000 1 080803241 4 501087083 mb ece 805 647513 481 739685 443 157748 323 907828 105 705362 37 248569 45 204577 65 436655 65 436655 18 384848 20 182482 10 888421 36 376538 56 738679 59 911371 48 794553 7 956008 3 611284 3 712904 1 780000 A 101 620 14 607 s of 31 s of 4 097 - - - er 2010 er INCOME STATEMENTINCOME I. III . II VI.2. VI.1. VI. V. I .1. VII . VII .2. VII . XIII . XII XI. X. IX . VIII V. . . Sales C G Expenses I activities Other P O I F Expenses N I P xtraordinary lossExtraordinary xtraordinary gain Extraordinary P m nco m nco m nco inancial and invest and inancial m operations fro rofit rofit b rofit ordinary activities m ordinary fro rofit ost of sales ost of ross profit et profit perating expenses perating e e e tax efore tax efore m ent activities ent (1 249974624) 1 591833038 (173 607359) (24 157324) (31 090974) (13 084039) 341 858414 168 251055 150 064993 181 155967 181 155967 (2 552846) 28 541797 11 073285 25 988951 2011 - - G roup (1 166977605) 1 404243339 (151 701482) (30 850067) (13 189550) (20 778711) 237 265734 (2 034095) 85 564252 19 327362 10 071356 17 293267 68 889258 82 078808 82 078808 2010 - - (1293977691) 1 621699001 (162 964773) (24 022272) (30 339955) (13 019430) 327 721310 164 756537 147 261050 177 601005 177 601005 (2 429190) 28 293088 11 002842 25 863898 2011 - - C om pany (1141114570) 1 364733448 (141 362669) (30 617464) (12 850426) (21 175812) 223 618878 (2 095868) 82 256209 19 302552 17 206684 65 436655 78 287081 78 287081 9 441652 2010 - -

AB lietuvos geležinkeliai / 2011 / annual report 39

AB lietuvos geležinkeliai / 2011 / metų ataskaita 42 www.litrail.lt email: [email protected] Fax +37052692128 Mindaugo g. 12, LT-03603 Vilnius AB Lietuvos geležinkeliai