Fgc Rosseti · RUS:FEES

Fgc Rosseti — Federal Grid Company of Unified Energy System — H1 2014 Earnings Presentation

16 slides from Fgc Rosseti's earnings presentation, Aug 28, 2014

  1. Slide 1: 1H2014 Operational and Financial Results

    LISTED STANDARD DEPOSITARY RECEIPTS 1H2014 Operational and Financial Results Andrey Kazachenkov First Deputy Chairman of the Management Board 28 August 2014

  2. Slide 2: Key corporate developments in 1H2014

    Key corporate developments in 1H2014 Key Events 1H2014 Consolidated Financial Results  The Company successfully provided power supply to  Revenue increased by 12.6% y-o-y to RUB 85.4 bn. facilities related to the Olympic Games in Sochi.  Total operating expenses excluding allowance for  20 Febru

  3. Slide 3: RAB Regulation: a Transformed Approach to Financing

    RAB Regulation: a Transformed Approach to Financing RAB Regulation Approach in Transmission  In May 2012, the Federal Tariff Service approved Federal Grid’s RAB tariffs for 2012–2014:  Federal Grid Company tariffs increased by 11.0% starting from 1 July 2012 and by 9.4% from 1 July 2013  Return o

  4. Slide 4: Operational Overview

    Operational Overview Electricity Transmission Volume Transmission Grid Length in Operation(1) bn kWh (for respective period) ‘000 km (end of period) 140 257 260 253 135,1 135,7 135 240 220 130 0 200 0 125 1H2013 1H2014 2013 1H2014 Substations in Operation(1) Total Transformer Capacity in Operation(1

  5. Slide 5: Key Financial Results

    Key Financial Results Revenue Adjusted EBITDA RUB bn RUB bn 158.0 100 70,0 93 150 +12.6% +23.3% 75 65,0 100 85.4 50 75.8 50 40 60,0 50 58.6 58.4% 25 55,0 0 53.3% 0 50,0 2013 1H2013 1H2014 2013 1H2013 1H2014 Adjusted EBITDA Margin Adjusted Profit for the Period Net Debt Position RUB bn RUB bn 30 -6.3

  6. Slide 6: Revenue Structure Analysis

    Revenue Structure Analysis 1H2013 1H2014 Y-o-Y Change % RUB bn RUB bn Transmission fee 73.913 79.465 7.5 Electricity sales 1.357 2.117 56.0 Other revenue 0.556 3.778 579.5 Total revenue 75.826 85.360 12.6 Total Revenue RUB bn  The Group's revenue from electricity transmission increased by 158.0 RUB

  7. Slide 7: Operating Cost Structure

    Operating Cost Structure (1) 1H2013 % of Total 1H2014 % of Total Y-o-Y Operating Operating Change % RUB bn Costs(3) RUB bn Costs (3) Personnel related expenses 14.656 23.4 13.651 24.4 -6.9 Purchased electricity 7.009 11.2 7.125 12.7 1.7 Repair, maintenance & materials 2.189 3.5 1.973 3.5 -9.9 Other

  8. Slide 8: Debt Capital Structure

    Debt Capital Structure Debt maturity profile RUB bn  As of 30 June 2014 the principal amount of the Company’s debt has amounted at RUB 267.5 bn: 35 56% of total debt are local bonds, 37% - infrastructure bonds, 7% are eurobonds 30  Successful put option totaling the principal at RUB 14.89 bn. 25 

  9. Slide 9: Earnings Analysis

    Earnings Analysis Adjusted EBITDA Bridge RUB bn 55 1.4 0.5 0.3 9.5 0.7 0.2 1.0 49.9 50 -0.1 -4.1 45 40.4 40 35 Adjusted Revenue Other Purchased Repairs Personnel Accrual of Finance Specific Other Adjusted EBITDA increase operating electricity and related allowance income impairment operating EBITDA

  10. Slide 10: Free Cash Flow

    Free Cash Flow Free Cash Flow in 1H2014 RUB Bn 60 5.2 54.3 49.9 -0.8 50 40 30 20 -32.6 11.0 10 -10.8 0 Adjusted EBITDA Changes in working Non-cash Operating cash flow Capex Interest paid Free cash flow capital adjustments Source: Company IFRS financials Note: Definitions for terms marked in this pre

  11. Slide 11: Thank you

    Thank you Appendix 12

  12. Slide 12: Appendix

    Federal WY Grid Company A

  13. Slide 13: Investment Programme for 2014

    Investment Programme for 2014 Commentary Investment programme (1), new construction 149,7 10,793 The revisions to the 2014 investment Investments, RUB bn 3,690 115,9 8,478 programme approved in January 2014 3,298 was confirmed by the RF Ministry of Transmission lines, km Energy in August 2014 at the

  14. Slide 14: Federal Grid Company Priority Investment Projects for 2014-2019

    Federal Grid Company Priority Investment Projects for 2014-2019 Central Federal District Northwest Federal District Siberian and Far East Federal • Beloberezhskaya and Obninskaya • Ensuring reliability of the Northwest Unified Districts 500 kV substations Energy System, despite separate from Baltic

  15. Slide 15: 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

  16. Slide 16: 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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