Fgc Rosseti · RUS:FEES
Fgc Rosseti — Federal Grid Company — The Russia Forum 2010
16 slides from Fgc Rosseti's conference presentation, Feb 5, 2010
Slide 1: Federal Grid Company - The Russia Forum 2010
Federal Grid Company THE RUSSIA FORUM 2010 3-5 February, 2010
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by the Company. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company relies on information obtained from sources believed to be reliable but d
Slide 3: Federal Grid Company Today
Federal Grid Company Today Who we are Regions covered by FGC The largest publicly traded electricity transmission company in the world* Occupies an exclusive and unique market position in Russia. Competition-free operation Guaranteed return on investment due to the introduction of the new asset-base
Slide 4: Leading Russian Blue-chip Company
Leading Russian Blue-chip Company 0,016 0.016 Shares traded in Russia on MICEX Last Price 0.0111 High on 11/18/09 0.0138 0,014 0.014 and RTS, under the ticker FEES Average 0.0081 0,012 0.012 GDRs traded internationally OTC Low on 02/05/09 0.00229 0,010 0.010 (Over The Counter) 0,008 0.008 Internatio
Slide 5: Strategy
Strategy MISSION The electricity grid provides lifeblood to our society and economy. Federal Grid Company plays a vital role in ensuring the development and reliability of this system. We operate in a modern, regulated market environment, and are committed to delivering value to our shareholders and
Slide 6: New Tariff Regulation: How The System Will Change
New Tariff Regulation: How The System Will Change Old Tariff System New Tariff System «Costs +» «RAB» Regulatory Asset Base 1 January 2010 Compensates Operator for the incurred costs Stimulates investment and operating efficiency Composition of the tariff-based revenue: Composition of the tariff-bas
Slide 7: Investment Program: Finance
Investment Program: Finance Investment Schedule From Government subsidies to market finance RUR Billion 186.3 Use of Government investment and proceeds 171 162.1 from the sale of RAO UES assets for financing the investment program will be gradually phased out by 2012 The share of borrowing in the fi
Slide 8: Transition To The RAB Tariff Regulation
Transition To The RAB Tariff Regulation 3-year transitional period 5-year regulatory period Return on initial Return on initial invested Return on initial Return and costs to be invested capital: 3.9% capital: 5.2% invested capital: 6.5% agreed in 2012 2013- 2008 2009 2010 2011 2012 2018 Return on n
Slide 9: Investment Program: Where the money goes
Investment Program: Where the money goes Total Investment Program 2010-2012 RUR 519bn Joint projects with regional governments Federal program - Provisions for Development of Technological the capacity and Information management of nuclear, hydro and Investment Program thermal plants to develop Russ
Slide 10: Investment Program: Scope and Scale
Investment Program: Scope and Scale Grid construction on the route Connecting power unit № 4 (1000 MVt) of Neryungrinskiy Hydro Power Plant - Kalinin Nuclear Power Plant to the grid New major construction projects Nizhniy Kuranah - Tommot - Maiya Completion by 2012 Transmission lines (220kW, 330kW,
Slide 11: Investment Program: Scope and Scale
Investment Program: Scope and Scale 3 years plans: 59 new substations with the total capacity of 28,933 MVA Construction of 70 new high-voltage power lines with a total length of 9,800 kilometres Increase grid capacity by circa 10% Construction of new transmission capacity Investment Programme 2010
Slide 12: Emphasis on cost efficiency
Emphasis on cost efficiency Projected growth in cost efficiency RAB tariff agreement for 2010-2012 sets up a target of 2.5% annual rate of reduction in operational costs controlled by the Company Management Board of FGC has approved the General Programme for Efficiency Improvement, which includes th
Slide 13: Leverage
Leverage Projected increase in borrowing Federal Grid Company’s Net Debt is set to grow from RUR 18bn in 2009 to up to RUR 180bn by the end of 2012 This will lead to an increase in leverage as a proportion of the Company’s total capital from 2.5% (2009) to up to 25% (2012) The Company has placed con
Slide 14: Corporate Governance and Management
Corporate Governance and Management Sergei Shmatko Shareholder meetings Chairman of the Board of Directors Board of Directors Energy Minister of the 12 members, including 4 Russian Federation independent directors since May 2008. Prior to that Mr. Shmatko was President of Atomstroyexport in 2005-200
Slide 15: Summary
Summary Leading Russian Blue-chip Company Unique position in the Russian market, largest Russian utility company by market cap Guaranteed return on investment Introduction of the new RAB tariff system which stimulates investment and efficiency Significant growth prospects RUR 519bn investment progra
Slide 16: Contacts
Contacts Federal Grid Company of Unified Energy System 5A, Akademika Chelomeya Str., Moscow, Russia, 117630 Alexander Duzhinov Head of Investor Relations Tel.: +7 495 710 90 64 Mob.: +7 906 077 38 90 E-mail: ir@fsk-ees.ru Page 15