Fgc Rosseti · RUS:FEES
Fgc Rosseti — Federal Grid Company — Investor Presentation (May 2012)
22 slides from Fgc Rosseti's investor presentation, May 2012
Slide 1: Investor Presentation May 2012
LISTED STANDARD DEPOSITARY RECEIPTS Investor Presentation May 2012
Slide 2: Company's Profile
Company’s Profile Scale of Business Growth Prospects Largest publicly traded electricity transmission Anticipated electricity demand 2010 – 2020 CAGR company in the World (1) with over 120,000 km of 2.4% of transmission lines with total capacity of over System upgrade focused on improving effi
Slide 3: Operational Overview
Operational Overview Total Transformer Capacity Electricity Transmission Thousands MVA Bn kWh 350 600 330 453 471 485 311 306 400 300 200 0 250 0 2009 2010 2011 2009 2010 2011 Transmission Grid Length Thousands km 130 125 121 122 120 110 100 0 2009 2010 2011 Source Company data 3
Slide 4: RAB Regulation: Transforming Approach to Financing
RAB Regulation: Transforming Approach to Financing Regulatory Asset Base (RAB) Regulation Since 1 January, 2010 Federal Grid Company operates on the basis of RAB regulation Tariff for electricity transmission includes return on invested capital in compliance with best international practices bas
Slide 5: Scheme Development of Russian Energy Sector
Scheme Development of Russian Energy Sector General Scheme of Electric Energy Facilities’ Deployment Approved by Government of the Russian Federation Includes: Objectives and development priorities for 15 years Electric energy consumption forecast Deployment plan for electric energy facili
Slide 6: Investment Program: 2012-2014
Investment Program: 2012-2014 On May 11, 2012, Ministry of Energy approved Federal Grid Company’s investment programme for 2012-2014 The approved plan entails investments totalling RUB 504.8 billion into the commissioning of 50,368 MVA of new transformer capacity and 13,147 kilometres of new transmi
Slide 7: Key Investment Projects
Key Investment Projects Capacity provision of Kalininskaya Electricity supply of East Siberia NPP generating unit #4 (1 000 MW) Pacific Ocean oil pipeline Start Date: 2009 Start Date: 2010 Due Date: 2012 Due Date: 2016 Underground cabling Construction of Zeyskaya HPP— in St. Petersburg Russian-Chine
Slide 8: 2011 Key Performance Indicators
2011 Key Performance Indicators 2011 Key Performance Indicators RUR MM 2011 2010 Change Revenue 139,571 113,330 23% Adj. Operating Profit (1) 46,614 29,941 56% Adj. EBITDA (1) 83,760 67,717 24% Adj. EBITDA Margin (1) 60.0% 59.8% n/m Adj. Profit for the period (1) 38,241 27,910 37% Net Debt 85,232 (3
Slide 9: Financial Highlights
Financial Highlights Revenue EBITDA adj. (1) and Margin RUR MM RUR MM % 150,000 139,571 90,000 83,760 95% 67,717 120,000 113,330 60,000 70% 87,580 42,619 90,000 30,000 59.8% 60.0% 45% 60,000 48.7% 30,000 0 20% 2009 2010 2011 2009 2010 2011 EBITDA Margin CAPEX (excl. VAT) Profit for the period adj. (
Slide 10: Capital Structure
Capital Structure Federal Grid Ratings S&P Credit Portfolio (as of 4 May 2012) Same as Sovereign: BBB Outlook Stable Bond issue RUR MM Interest Rate, % Maturity/Put date Moody’s One Notch Below Sovereign: Baa2 Series 6 10,000 7.15 26 September 2013 Outlook Stable Series 7 5,000 7.50 27 October 2015
Slide 11: IR Contacts
IR Contacts Contacts for Institutional Investors and Analysts Head of Investor Tel.: +7 495 710 9064 Relations: Mob: +7 916 041 8053 Alexander Duzhinov Fax: +7 495 710 9641 E-mail: ir@fsk-ees.ru Source Company Data 11
Slide 12: Appendix
Federal MM, Grid Company “9
Slide 13: Debt Profile Compares Favourably with International Peers
Debt Profile Compares Favourably with International Peers ... Net Debt / EBITDA, 2011 Total Debt / (Total Debt + Equity), 2011 4,2 x 80% 72% 3,6 x 61% 56% 2,7 x 3,1 x 3,2 x 60% 50% 55% 43% 44% 2,0 x 2,2 x 35% 40% 1,0 x 13% 0,7 x 20% 0% Credit Rating Comparison Company Moody’s S&P Fitch Sovereign (Ru
Slide 14: RUB bonds and RUB Eurobonds - Current Yields
RUB bonds and RUB Eurobonds - Current Yields Strong presence on the Local Market 9,5% 9,0% FSK-13 RSHB 16 - 2 RSHB-12 FSK-19 RZD 19 (8.3%) 8,5% Rushydro 15 RusHydro-1 FSK-11 RSHB БО-02 RZD-16 RSHB-15 FSK-7 RZD-19 RSHB 16 8,0% RSHB БО 03 RZD-23 FSK-10 OFZ Curve RZD-17 FSK-15 RSHB, БО-1 FSK-18 Yield,
Slide 15: Liquidity and Debt Maturity Schedule
Liquidity and Debt Maturity Schedule Favorable debt maturity profile with no maturities this year Debt Debtissued in 2011 was long term, contributing to the favorable maturity schedule Maturity Liquidity is supported by unutilized credit lines of RUR 117.5 bn and almost RUR 26,8bn in cash and
Slide 16: Change in EBITDA
Change in EBITDA RUR MM 16,043 (+24%) (1,850) (3,932) 83 760 3,153 (4,456) (3,113) 75 000 67 717 26 241 50 000 25 000 EBITDA adj 2010 Revenue increase Finance income Payroll increase Electricity & repair Impairment (PPE, Other EBITDA adj 2011 deсrease expense decrease AR) Source Company IFRS financi
Slide 17: Revenue and Cost Structure
Revenue and Cost Structure Revenue Structure Cost Structure RUR MM RUR MM 100,750 139,571 100,000 140,000 2,571 2,246 87,873 24,894 78,216 80,000 16,336 120,000 3,977 113,330 4,427 889 22,278 13,781 3,070 60,000 15,942 6,933 100,000 134,754 24,046 40,000 15,431 20,114 87,580 3,990 109,371 3,348 80,0
Slide 18: Free Cash Flow
Free Cash Flow RUR MM 13,573 Cash and cash equivalents at the beginning of the period 68,645 Net cash generated by operating activities (124,743) Net cash used in investing activities 68,152 Net cash generated by financing activities 12,054 Net increase in cash and cash equivalents 25,627
Slide 19: Smart Grid — New Quality of Russian Energy Industry
Smart Grid — New Quality of Russian Energy Industry Smart Grid is a brand-new state of the grids based on new principles Integrating all types of generation and technologies related to electric energy transmission (including small generators) and transformation, which allows for: and all types of
Slide 20: Smart Grid: Pilot Projects of North-West and the East
Smart Grid: Pilot Projects of North-West and the East Smart Grid St. Petersburg of the North-West North-West Moscow Center East Volga Urals South Smart Grid of the East Siberia Khabarovsk Vladivostok Pilot projects of the North-West are focused on: Pilot projects of the East provide for: Ensuring
Slide 21: Prospects for Energy Bridge Development in Russia
Prospects for Energy Bridge Development in Russia Export/import to/from Norway Export/import to/from Finland West-East Energy St. Petersburg Bridge Moscow UES of North-West UES of Center UES of East UES of Siberia UES of UES of Urals UES of South Volga Export to China Center-Urals Energy Bridge Inte
Slide 22: 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 the confidenti
Federal Grid Company — Investor Presentation (May 2012) on 6ix