The presentation "LUG SA Capital Group in 2012 - annual review" is a part of Online Annual Report 2012 - the first online report on NewConnect market. The presentation is an abbreviation for major events in 2012, with a commentary of the President of LUG S.A. Management Board.

1. LUG S.A. Capital Group in 2012
- Timeline

2. LUG in 2012
JANUARY01
In January 2012, LUG Light Factory purchased a 2.4ha estate in Lubuski
Industry and Technology Park in Nowy Kisielin, where it is planning to build
a plant manufacturing electronic components. The area is part of the
Kostrzyń-Słubice Special Economic Zone.
01/2012
Site Acquisition for a New Plant
„Our subsidiary has purchased an investment plot of 2.43 ha in a bidding
procedure for the net price of PLN 980,000. We have already obtained a permit
to conduct business activity in the Kostrzyo-Słubice Special Economic Zone
where the real estate is located. We are going to build a plant manufacturing
devices based on advanced LED technologies which are just now beginning to
develop. Moreover,
there is a shortage of high-quality products in Poland, and the market is
flooded with poor-quality products from Asia. We want to fill that niche and
start up the new plant by the end of 2015,”
– says Ryszard Wtorkowski, President of LUG S.A. Management Board

3. LUG in 2012
FEBRUARY02
LUG S.A. Capital Group has completed the registration of a LUG Light Factory
Sp. z o.o. trade office in the Ajman Free Zone. The office is located within
the economic zone in Ajman, near Dubai, United Arab Emirates.
02/2012
Commercial Representative Office in the United Arab Emirates
„Our foreign expansion has gained momentum. We are opening trade and
representative offices in markets in which we already have established a strong
presence, and
believe these efforts are bound to be successful. Such was the case with our
representative offices in London and Paris. And such is the case with the new
trade office in the Ajman Free Zone in the United Arab Emirates,”
– says Ryszard Wtorkowski, President of LUG S.A. Management Board

4. LUG in 2012
MARCH03
LUG S.A.’s website and its investor relations have been appreciated by the
jury, who selected the company from among the 54 issuers which made it to
Stage Two. In the NewConnect category, LUG competed against two other
companies. All of the finalist companies were analysed by excellent capital
market professionals, including experts in graphic design, marketing
communications, economics and investor relations.
03/2012
Golden Website 2012 Finals
“We are pleased with the jury’s opinion and the voices of investors who
appreciate changes in our website design which make it even more user-
friendly and meet their information requirements,”
– says Ryszard Wtorkowski, President of LUG S.A. Management Board

5. LUG in 2012
APRIL04
In April 2012, during LIGHT+BUILDING, the biggest trade fair in the lighting
industry held in Frankfurt am Main, LUG presented a new brand of its
exclusive lighting fixtures. Flash DQ is a new line of lighting solutions
targeted at architects and designers looking for a synergy between supreme
quality and sophisticated design. The brand’s debut was a great success.
04/2012
Flash DQ Brand Debut
„During this year’s edition of the prestigious Light + Building trade fair, we
presented our new collections of Flash DQ fixtures. Our exhibition stand was
visited by nearly one thousand people, and each of the visitors emphasized our
non-standard solutions and interesting design, referring both to the stand and
the fixtures,”
– says Ryszard Wtorkowski, President of LUG S.A. Management Board

6. LUG in 2012
MAY05
LUG Light Factory received the Business Swallow 2012 statuette,
symbolising the Economic Award of the President of Zielona Góra. The
company was presented the award in recognition of the fact that its
activities not only take international markets by storm, but also contribute
to the development of Zielona Góra and local communities.
05/2012
Business Swallow 2012
„Zielona Góra is our city, and I am fascinated with observing the progress it is
making towards becoming a friendly and dynamically developing place, both
for business, culture and sports alike. I am happy LUG has its roots here and
can support these changes,”
– says Ryszard Wtorkowski, President of LUG S.A. Management Board

7. LUG in 2012
JUNE06
In June 2012, LUG S.A. Capital Group celebrated the completed registration
procedure of its new subsidiary, LUG do Brazil - Artigos de Iluminação Ltda.
(LUG do Brazil Ltda.) began the process of expansion on the Brazilian market
and development of its operations throughout South America.
06/2012
Expansion on the Brazilian market
“Our new subsidiary will not only employ local experts who are familiar with
the realities of a country as culturally and economically different from ours as
Brazil, but will also be managed locally, as all Directors are residents of São
Paulo. Poland will contribute our know-how and technical expertise developed
over the 20 years of the company’s existence. If all goes well as expected, Brazil
will become our gateway to other markets in South America,”
– says Ryszard Wtorkowski, President of LUG S.A. Management Board
http://lug.com.pl/Brazil/

8. LUG in 2012
JULY07
The General Meeting of LUG S.A. Shareholders adopted a resolution on the
distribution of the first dividend since the company was listed on the stock
exchange. In accordance with the resolution, a dividend of PLN 0.01 per
share was paid out on 11 October 2012.
07/2012
Dividend for LUG S.A. Shareholders
“Considering our dynamic development and investment plans related to the
market launch of new fixtures and construction of a new production plant, our
shareholders should be satisfied with the dividend. We have received many
positive responses from investors who appreciate the fact we deliver on our
promises and are prepared to share the profits we make,”
– says Ryszard Wtorkowski, President of LUG S.A. Management Board

9. LUG in 2012
AUGUST08
In the second issue of the TOP PICK report, Infinity8 analysts identified LUG
S.A. as one of the three most interesting companies in the Alternative
Trading System. The company gained recognition for its dynamic
performance, innovativeness of its products, and plans for building a new
production plant.
08/2012
TOP PICK on the NewConnect Market
LUG was awarded an overall rating of 5. This was made up of detailed ratings in
the following categories: innovation – 4.5; experience of the Management
Board – 5; share liquidity – 5; Altman Z-score – 4.
The report is available at:
http://www.lug.com.pl/Relacje_inwestorskie/Aktualnosci,year,2012,news_id,5
164

10. LUG in 2012
SEPTEMBER09
On 28 September 2012, the Extraordinary General Meeting of Shareholders
voted on a resolution concerning a reverse split of the Issuer’s stock. The
Shareholders unanimously adopted the reverse split programme proposed
by LUG S.A. Management Board.
09/2012
Extraordinary General Meeting of Shareholders
The stock split we performed two years ago did not deliver the expected results.
We began to be perceived as a penny company, which reflected negatively on
our reputation. The investors we held meetings with emphasized the fact that
the Company was undervalued. The technical stock merge process itself will not
be enough. I do hope, however, that together with the upcoming mid-term
results, the company’s success in Brazil, and its plans of further growth, it will
contribute to improving our market rating,”
– says Ryszard Wtorkowski, President of LUG S.A. Management Board

11. LUG in 2012
OCTOBER10
LUG Light Factory finalised the formal procedure of registering its trade
representation in Paris, the capital of France. As a result, the business
activities of LUG S.A. Capital Group have legally been established as part of
its strategy of expansion on European markets.
10/2012
Trade representation in France
“So far, we have operated on the French market without a trade representation
of our own, based on business contacts pursued with the use of remote
communication tools. From now on, we will be able to operate in Paris directly
through our own commercial office,”
– says Ryszard Wtorkowski, President of LUG S.A. Management Board

12. LUG in 2012
NOVEMBER11
In November 2012, LUG performed a reverse stock split resulting in an
increase in the nominal value per share and a proportional reduction in
their number. A Knowledge Centre was launched for shareholders and
investors, providing detailed information concerning the process.
11/2012
LUG S.A. Reverse Stock Split
Share Series
No. of shares before RSS
(nominal value PLN 0.01)
No. of shares after RSS
(nominal value PLN 0.25)
Series A 108,000,000 4,320,000
Series B 35,971,400 1,438,856
Series C 35,992,850 1,439,714
Total 179,964,250 7,198,570

13. LUG in 2012
DECEMBER12
In December 2012, LUG S.A. Capital Group purchased a new production line
for SMD assembly which will enable the manufacture of LED components
already in 2013. In the spring of 2013, work began at the existing LUG plant
to add an extension of 700m2.
12/2012
Production of LED Components
We decided to wait no longer and begin the manufacture of electronic
components we will use in LED fixtures already in 2013. There is a shortage of
high-quality LED components in Poland, and the market is flooded with poor
quality products from Asia. We want to fill that niche
and, in addition, by making use of our own resources increase our production
capacity and options for adjusting our components to non-standard designer
concepts,”
– says Ryszard Wtorkowski, President of LUG S.A. Management Board

14. LUG S.A.
ul. Gorzowska 11
65-127 Zielona Góra
www.lug.com.pl/Relacje_inwestorskie
Contact:
relacje@lug.com.pl