Fgc Rosseti · RUS:FEES
Fgc Rosseti — Federal Grid Company of the Russian Unified Energy System (FGC UES) — 9M 2009 Earnings Presentation
19 slides from Fgc Rosseti's earnings presentation, Nov 17, 2009
Slide 1: Federal Grid Company (FGC) 9M 2009 results presentation
Federal Grid Company (FGC) of the Russian Unified Energy System 9M 2009 results presentation November 17, 2009 0
Slide 2: Disclaimer
Disclaimer This document is confidential and has been prepared by JSC FGC UES (the “Company”) exclusively for the given conference or meeting, and cannot be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any other purpose. The information
Slide 3: Key events
Key events 9 months of 2009 January On January 19th, 2009, FGC UES started the placement of its additional share issue February On February 11th, 2009, MSCI Barra (the developer of stock market indices) adopted a decision to include the Company’s shares in the MSCI Russia and MSCI Emerging Markets i
Slide 4: General information
General information Regions covered by FGC UES Key facts 73 regions with an overall area of 13.6 million square km X FGC UES is a natural monopoly in the energy transmission sector, owning and managing the Unified National (all-Russian) Electric Grid (UNEG) – with voltages of 220 kV or higher X FGC
Slide 5: Strategic Goals
Strategic Goals To ensure the stable functioning, as well as the timely development, MISSION of the Unified National (all-Russian) Electric Grid (UNEG), to an adequate level based on domestic economic growth f Transitioning to tariff regulation using the method of return on invested capital (RAB), b
Slide 6: Investment Highlights
Investment Highlights The Company is one of the most attractive investment FGC UES opportunities in the Russian stock market f The effective regulatory system is legally determined by Government Provision №459 (as of June 18th, 2008) and Order №231-e of the Russian Federal Tariff Service (as of Chan
Slide 7: Changes in Tariff Regulation
Changes in Tariff Regulation Key Principles Quantitative Parameters of RAB Regulation of RAB Regulation* X The transmission tariff includes the justified X Beginning in 2010, the Russian Government return on invested capital in accordance with approved FGC UES’ transition to RAB regulation internati
Slide 8: EBITDA and Tariff Growth (Forecast)
EBITDA and Tariff Growth (Forecast) Projected Tariff and EBITDA Growth X Beginning in 2010 – following the transition to a new regulatory system – tariff increases will be based on EBITDA growth X EBITDA under RAB regulation is strictly defined by the rate of return and the RAB amortization period (
Slide 9: Key financial indicators (RAS)
Key financial indicators (RAS) 9 months 2008 9 months 2009 Change, % Financial indicator (VAT not included), RUR mln Revenue from sales 51,470 61,861 20 Revenue from electricity transmission services* 49,744 59,948 21 Revenue from other activities ** 1,726 1,913 11 Net income 7,149 12,641 77 * Tarif
Slide 10: Material changes: Balance sheet
Material changes: Balance sheet Material changes in the items Change, % Explanation of the material changes since the beginning of 2009 ASSETS Construction in progress +29 Increased volume of the investment program Accounts receivable (long-term) -51 Retirement of bills Accounts receivable (short-te
Slide 11: Material changes: Profit and loss statement
Material changes: Profit and loss statement Items with material changes for 9 Change, % Explanation of material changes months of 2009 Due to increased production capacity compared with the same period in the previous year, as well as a 20.7% higher tariff to transfer electric energy through the UNE
Slide 12: Borrowing and credit leverage
Borrowing and credit leverage X FGC UES’ 2009 credit leverage – 6% FGC UES’ credit ratings X FGC UES plans to increase its net debt from RUR 18 bln in 2009 up to not more than RUR 180 bln in 2012 (a 25% September 2004 2005 2006 2007 increase in credit leverage) 2009 X FGC UES aims to cut the cost of
Slide 13: Investment program implementation
Investment program implementation X FGC UES’ total planned investment for 2009 – 2012 is RUR 519.4 Investment program bln Billion rubles X RAB-regulation will allow the investment program to be financed 200 through: – Re-investing shareholder capital on payback conditions 160 – Intensively using bor
Slide 14: Investment project – the introduction of new capacities
Investment project – the introduction of new capacities 13,457 10,314 7,946 8,060 7,416 6,351 3,498 3,556 3,043 1,820 1,047 1,387 637.5 591.8 2006 2007 2008 2009 2010 2011 2012 Length of power lines, kilometers Transformer capacity, MVA Realizing the 2010 – 2012 investment program will allow the Com
Slide 15: Share liquidity
Share liquidity Market capitalization based on weighted average MICEX Trading volume for the period from January 11th, 2009 to prices for the period from January 11th, 2009 to September 30th, 2009 September 30th, 2009 RusHydro RusHydro InterRAO Inter Rao Mosenergo After successfully completing a GDR
Slide 16: APPENDIX
APPENDIX 15
Slide 17: Balance Sheet as of September 30th, 2009 (RAS) (1)
BALANCE SHEET as of September 30th, 2009 (RAS) (1) RUR thousand Indicator As of the beginning of As of the end of the ASSET code the accounting period accounting period Intangible assets 110 1,535,909 1,513,415 Fixed assets 120 157,129,616 151,064,665 Construction in progress 130 150,373,965 194,352
Slide 18: Balance Sheet as of September 30th, 2009 (RAS) (2)
BALANCE SHEET as of September 30th, 2009 (RAS) (2) RUR thousand As of the beginning of the As of the end of the accounting LIABILITIES Code accounting period period Share capital 410 576,757,098 576,757,098 Additional capital 420 59,502,413 59,442,027 Reserve capital 430 9,910,770 10,134,044 Undistr
Slide 19: Profit and Loss Statement for 9 months of 2009 (RAS)
PROFIT AND LOSS STATEMENT for 9 months of 2009 (RAS) For the reported For the same period RUR thousand Code period in the previous year Net earnings, including: 010 61,860,953 51,469,597 electrical power transmission services 011 59,947,500 49,743,563 other activities 012 1,913,453 1,726,034 Operati