Inter Rao · RUS:IRAO
Inter Rao — Inter RAO UES — Investor Presentation (2011)
29 slides from Inter Rao's investor presentation, Aug 13, 2011
Slide 1: Energy Beyond Borders
Slide 2: Company Background
COMPANY BACKGROUND
Slide 3: INTER RAO UES Today
INTER RAO UES Today INTER RAO UES Holding owns electric power generating, engineering, distribution and trading assets in Russia and other countries • Diversified energy holding managing assets in Russia, Georgia, Armenia, Kazakhstan, Tajikistan, Moldova and Finland • Presense in all key sectors of
Slide 4: Development Strategy
DEVELOPMENT STRATEGY
Slide 5: INTER RAO UES Vision in 2020
INTER RAO UES VISION in 2020 • One of the top 10 energy companies worldwide INTER RAO UES by installed capacity and size of business is an international electric energy • Manages diversified asset portfolio in various segments of value company chain evenly distributed across Russian and internationa
Slide 6: Strategic Objectives and Initiatives
Strategic Objectives and Initiatives Strategic Objectives Strategic Initiatives • Attaining leadership position in Russian • Ensuring reliability, safety and operational efficiency of active assets energy sector • Consolidating stakes in electric energy companies owned by the Russian Federation and
Slide 7: Target business model: integrated approach
Target business model: integrated approach Increase of shareholder value in each segment of operations chain Retail sales Equipment manufacturing Fuel production Generation Large consumer sales Design and construction International trade segments with current presence target presence segments 7
Slide 8: Lines and Types of Business
© LINES AND TYPES OF BUSINESS
Slide 9: Generating assets in Russia
Generating assets in Russia 21 THERMAL POWER PLANTS WITH COMBINED GENERATING CAPACITY OF 22,662 MW Kashirskaya TPS (Moscow Region) Severo-Zapadnaya CHPP (Saint Petersburg) Kostromskaya TPS Pechorskaya TPS (Kostroma Region) (Komi Region) Kaliningrad CHPP-2 (Kaliningrad Region) Permskaya TPS (Perm Reg
Slide 10: Generation development strategy
Generation development strategy Goals and objectives in the area of thermal Key events generation • Buy/consolidate assets • Corporate integration of OGK-1, OGK-3 and TGK-11 • Deliver on new construction projects • Building new generating assets (also under • Financially beneficial asset swaps with
Slide 11: Trading geographies
Trading geographies Trading activities (electricity import, export and sales at wholesale electric power market) generate more than 50% of the total INTER RAO revenues Electricity Export Structure in 2010 Electricity Import Structure in 2010 We exported a total of 17.647 bn kWh of electricity in 201
Slide 12: Trading development strategy
Trading development strategy Key events Trading goals and objectives • Create/acquire trading arms in international markets • Create futures and options market in Russia to hedge risks at the wholesale electricity market • Establish JV with national operators • Participate in construction of new pow
Slide 13: International business
International business INTER RAO UES prioritizes emerging markets of • INTER RAO UES works in 27 countries Asia, Africa, Latin America and Middle East as well as at mature European markets. • International assets of INTER RAO currently include generating, trading and grid management companies • In 2
Slide 14: International Business Development Strategy
International Business Development Strategy International asset development goals and objectives Key events • Increase company presense at international markets • Establish regional subsidiaries • Ensure profitable asset management • Acquire assets undergoing privatization or obtain contracts to man
Slide 15: Retail Sales Development Strategy
Retail Sales Development Strategy Since March 2011, INTER RAO UES owns 6 electricity sales companies serving Moscow, Saint Petersburg, Altai Krai, Saratov Oblast, Tambov Oblast and Oryol Oblast. These assets are managed by Obyedinyonnaya Energosbytovaya Kompaniya Retail sales development goals and o
Slide 16: Engineering development strategy
Engineering development strategy In 2010, INTER RAO UES completed acquisition of Quartz Group, a leading Russian engineering and maintenance service provider Engineering business development goals and Key events objectives • Develop and attain missing technical competence • Create a full-cycle engin
Slide 17: Consolidation and Additional Stock Issue
CONSOLIDATION AND ADDITIONAL STOCK ISSUE
Slide 18: Additional Share Issue
Additional Share Issue Key facts about additional share issue Main stages of additional share issue • Additional shares of INTER RAO UES are issued in alignment with 25.06.2010 – Approval of additional issue of INTER Presidential Decree #1190 dated September 30, 2010, and RAO Governmental Decree #18
Slide 19: Equity management strategy Fundamentals
Equity management strategy Fundamentals Approach to management of equity stakes received through consolidation Controlling stakes • Maintain control and integrate acquired asset into INTER RAO business model (>50%) • Increase assets’ operational efficiency and its attractiveness for investment • Con
Slide 20: Capital Structure
Capital Structure Structure before new stock Structure after new stock issue and issue completion of subscriber transactions Minority Russian Federation represented by State Corporation Other shareholders the Federal Agency for State Property Rosatom 30.1% 12.9% Management 14.8% 45.1% INTER RAO Capi
Slide 21: Appendices
APPENDICES
Slide 22: Operational Results of Russian Assets
Operational Results of Russian Assets Key figures* Russian assets of OGK-1 NVGRES TGK-11 INTER RAO UES 2010 % 2010 % 2010 % 2010 Revenue from electric energy sales million RUB 7 477 +16% 44 214 +41% 7 732 +27% 5 156 +21% Revenue from electric power sales million RUB 5 554 +1% 11 544 +10% 2 381 -6% 3
Slide 23: Operational Results of International Assets
Operational Results of International Assets International generating assets of INTER RAO UES 2010 % Revenue from electric energy sales million RUB 12 779 +17% Sales of electricity in internal market million RUB 6 529 +38% Electricity export million RUB 6 250 +2% Revenue from heating energy sales mil
Slide 24: Financial Results
Financial Results Russian assets of INTER International assets of RAO UES INTER RAO UES** OGK-1* NVGRES* TGK-11* 2010 % 2010 % 2010 % 2010 % 2010 % Revenues million RUB 61 393 31% 48 563 45% 56 467 33% 10 256 17% 19 322 13% Expenses million RUB 58 246 30% 40 203 38% 51 818 34% 8 425 12% 18 253 12% E
Slide 25: Credit Portfolio
Credit Portfolio Structure of credit portfolio Currency breakdown INTER RAO mean credit portfolio as of the end of 2010 was €1,013 million, which is 7.17% less than in 2009. Average loan interest rate in 2010 was 7.06%, * according to management reports which is 2.86% less than a year ago. ** report
Slide 26: Investment Program
Investment Program Retrofitt Investment program financing (million RUB)* Financing ing and New Structure (million RUB moderni construction including VAT) zation 2011-2015 (plan) INTER RAO UES 23 000 14 049 8 951 (Russian subsidiaries) INTER RAO UES (international subsidiaries and 38 663 14 670 23 99
Slide 27: Goals and Objectives of HR and Corporate Responsibility Policy
Goals and Objectives of HR and Corporate Responsibility Policy Goals of HR and corporate Key events responsibility policies • Create motivating conditions to ensure • Establish state-of-the-art efficient human resource management system maximum productivity of group's human resources • Attract effic
Slide 28: Human Resources and Corporate Responsibility Policy
Human Resources and Corporate Responsibility Policy Human Resource management Quality management Headcount management Cost management • Training and certification • Optimize headcount • Optimize motivation and compensation system • Professional development • Define work standards • Manage overall co
Slide 29: Thank you!
Thank you!