Fgc Rosseti · RUS:FEES

Fgc Rosseti — Federal Grid Company of Unified Energy System — Investor Presentation (February 2014)

21 slides from Fgc Rosseti's investor presentation, Feb 6, 2014

  1. Slide 1: Investor Presentation

    LISTED STANDARD DEPOSITARY RECEIPTS Investor Presentation February 2014

  2. Slide 2: RAB Regulation: a Transformed Approach to Financing

    RAB Regulation: a Transformed Approach to Financing Regulatory Asset Base (RAB) Regulation  On 21 May 2012, the Russian Federal Tariff Service approved tariffs under RAB regulation for 2012 – 2014  Federal Grid Company tariffs increased by 11.0% starting from 1 July 2012, by 9.4% from 1 July 2013,

  3. Slide 3: Operational Overview

    Operational Overview Electricity Transmission Volume Total Transformer Capacity in Operations bn kWh (for respective period) GVA (end of period) 300 258 257 150 0 0 1H2012 1H2013 Substations(1) Transmission Grid Length in Operations Units (end of period) ‘000 km (end of period) 0 0 Source Company da

  4. Slide 4: Key Financial Results

    Key Financial Results Revenue Adjusted EBITDA RUB bn RUB bn 200 100 82.8 140.3 75 150 40.4 100 75.8 50 38.0 66.9 50 25 59.0% 56.8% 53.3% 0 0 2012 1H 2012 1H 2013 2012 (restated) 1H 2012 (restated) 1H 2013 Adjusted EBITDA Margin Adjusted Profit for the Period Net Debt Position RUB bn RUB bn 40 200 17

  5. Slide 5: Operating Cost Structure

    Operating Cost Structure (1) % of total 1H 2012 % of total 1H 2013 Y-o-Y operating (restated) operating RUB mln Change % expenses RUB mln expenses D&A (2) 27,844 - 20,464 - 36.1% Personnel Related Expenses 14,656 42.2% 12,759 41.3% 14.9% Purchased electricity 7,009 20.2% 6,432 20.8% 9.0% Allowance f

  6. Slide 6: Revenue Structure Analysis

    Revenue Structure Analysis 1H2013 1H2012 Y-o-Y Change % RUB mln RUB mln Transmission fees 73,913 65,342 13.1% Electricity sales 1,357 912 48.8% Other revenues 556 655 (15.1)% Total revenues 75,826 66,909 13.3%  The Group's revenues from electricity transmission services increased Total Revenue by R

  7. Slide 7: Earnings Analysis

    Earnings Analysis Adjusted EBITDA Bridge RUB bn 50 8.9 45 -0.6 0.3 -1.9 40.4 38.0 -1.8 40 -2.5 35 30 Adj. EBITDA Revenue Purchased Materials, Personnel Accrual of Other Adj. EBITDA (restated) Increase Electricity Repairs and Related Allowance for Expenses/ 1H 2013 1H 2012 Maintenance Expenses Doubtf

  8. Slide 8: Free Cash Flow

    Free Cash Flow Free Cash Flow in 1H 2013 RUB bn 50 43.5 40.4 40 0.5 -0.02 2.6 30 20 10 0 -42.7 -7.4 -6.6 -10 Adj. EBITDA Changes in Income Tax Non-cash Operating Cash Capex Interest Paid Free Cash Flow Working Capital Paid Adjustments Flow Source: Company IFRS financials Note: Definitions for terms

  9. Slide 9: Debt Capital Structure

    Debt Capital Structure Net Debt Position as of June 30, 2013 RUB bn  As of 30 June 2013 Total debt amounted to RUB 225.6 bn 240 216.4 225.6  90% of total debt is local bonds, 8% is Eurobonds, with the remaining being bank loans 200 168.0 173.4 160 2.0x 2.0x  100% of total debt is unsecured and ro

  10. Slide 10: Capital Structure and Debt Profile

    Capital Structure and Debt Profile Debt maturity profile Commentary (as of 06.02.2014), RUB Bn 35  Federal Grid is the only investment grade issuer in the Russian electricity sector (except JSC “Atomenergoprom”) 30  Federal Grid domestic bond curve forms benchmark for the Russian 25 electricity se

  11. Slide 11: Thank you

    Thank you Appendix 11

  12. Slide 12: Appendix

    Federal WY Grid Company A

  13. Slide 13: Investment Programme: 2013 – 2017

    Investment Programme: 2013 – 2017 Commentary Investment programme: Breakdown by year(1) 160 000 RUB mln 159 000  On 31 October 2012 the Ministry of Energy approved 200,000 Federal Grid Company’s investment programme for 2013 – 2017 155 499 155 177 155 135 155 124 154 596  The approved plan entails

  14. Slide 14: Investment Programme 2013-2017 Breakdown

    Investment Programme 2013-2017 Breakdown RUB 265.8 bn (33.1%) RUB 194.7 bn (25.1%) Development of Renovation of Fixed transmission Grids (1) Assets RUB 48.8 bn (6.3%) RUB 22.2 bn (2.9%) Enhancement of reliability of power supply in Connection of New Moscow, St. Petersburg and Tyumen Customers to UNE

  15. Slide 15: 2013-2017 Key Investment Projects. Completed projects in 2012

    2013-2017 Key Investment Projects. Completed projects in 2012 Provision of power (1,000MW) Provision of power (1,170MW) Construction of the 220kV Construction of power supply Provision of power (450 MW) Construction of power supply generated by Power Unit № 4 generated by Power Unit № 1 Pechorskaya

  16. Slide 16: Balance Sheet

    Balance Sheet Consolidated Interim Statement of Financial Position RUB MM 30 June 2013 31 December 2012 (restated) ASSETS Non-current assets Property, plant and equipment 1,118,301 1,096,535 Intangible assets 9,367 9,319 Investments in associates 1,491 1,403 Available-for-sale investments 26,586 50,

  17. Slide 17: Profit and Loss Statement

    Profit and Loss Statement Consolidated Interim Statement of Comprehensive Income RUB MM Six months ended Six months ended 30 30 June 2012 June 2013 (restated) Revenues 75,826 66,909 Other operating income 1,445 1,447 Operating expenses (66,328) (53,310) (Impairment) / reversal of impairment of prope

  18. Slide 18: Cash Flow Statement

    Cash Flow Statement Consolidated Interim Statement of Cash Flows Six months ended Six months ended RUB MM 30 June 2012 30 June 2013 (restated) (Loss) / profit before income tax (11,241) 4,635 Adjustments to reconcile (loss) / profit before income tax to net cash provided by operations Depreciation o

  19. Slide 19: Glossary

    Glossary General  The Unified National Electric Grid – the UNEG  JSC “Federal Grid Company of Unified Energy System” – Federal Grid Company  JSC “FGC UES” and its subsidiaries – the Group  OJSC “Russian Grids” – Russian Grids  The Russian Federal Tariff Service – the FTS Financial Metrics  Adj

  20. Slide 20: Contacts for Institutional Investors and Analysts

    Contacts for Institutional Investors and Analysts  Head of Investor Relations: Alexander Duzhinov Tel.: +7 495 710 9064 Mob: +7 916 041 8053 Fax: +7 495 710 9641 E-mail: ir@fsk-ees.ru  Vladimir Baklanov Tel.: +7 495 710 9333 ext. 2926 E-mail.: baklanov-vv@fsk-ees.ru 20

  21. Slide 21: Disclaimer

    Disclaimer The materials comprising this Presentation have been prepared by the Company solely for use by the Company’s management at investor meetings with a limited number of institutional investors who have agreed to attend such meetings and to be subject to obligations to maintain Company to con

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