Fgc Rosseti · RUS:FEES
Fgc Rosseti — Federal Grid Company — Morgan Stanley Power & Utility Summit (September 2010)
17 slides from Fgc Rosseti's conference presentation, Sep 16, 2010
Slide 1: Federal Grid Company
Federal Grid Company Morgan Stanley Power & Utility Summit Andrey Kazachenkov, CFO September 16, 2010
Slide 2: Federal Grid Today
Federal Grid Today Profile Regions covered by Federal Grid 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 3: Federal Grid Business
Federal Grid Business Electric power transmission Technological connection Monopoly position in Russia’s electric power transmission market Primary consumers are regional grid companies, energy sales companies and large industrial enterprises Federal Grid share in the end-consumer’s tariff is approx
Slide 4: Strategy
Strategy MISSION The electricity grid provides lifeblood to our society and economy. Federal Grid 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 investo
Slide 5: Transition to the RAB Tariff Regulation
Transition to the RAB Tariff Regulation 5-year regulatory period** 3-year transitional period* Return on initial Return on initial Return on initial Return on initial Return on initial invested capital: 3.9% invested capital: 5.2% invested capital: 6.5% invested capital: 7.8% invested capital: 9.1%
Slide 6: Investment Program: Where the money goes
Investment Program: Where the money goes Total Investment Program 2010-2012 RUR 519 bln Joint projects with regional governments Provisions for Federal program - the capacity Development of Technological of nuclear, hydro and Information management and thermal plants Investment Program to develop Ru
Slide 7: Investment Program: Priority Projects 2010-2014
Investment Program: Priority Projects 2010-2014 Power-generating unit № 4 (1000 MW) Grid construction on the route of Kalinin Nuclear Power Plant Neryungrinskiy Hydro Power Plant - New major construction projects Nizhniy Kuranah - Tommot - Maiya Completion - 2011 Transmission lines (220kV, 330kV, 50
Slide 8: Investment Program: Scale and Scope
Investment Program: Scale and Scope 3 years plan for new construction: 59 new substations with a total capacity of 31,313 MVA Construction of 70 new high-voltage power lines with a total length of 9,170 kilometres Increase grid capacity by approximately 10% Investment Program 2010 – 2012* 4,102 21,8
Slide 9: Innovative technologies and Smart Grid
Innovative technologies and Smart Grid The Smart Grid Transforming the UNEG into Smart Grid format will enable the is a qualitatively new status following problems to be solved: Основные for the UNEG that assumes Enhancing system reliability for electric grids; направления the integration of electri
Slide 10: Financial Performance (2007 – 2009)
Financial Performance* (2007 – 2009) 85, 078 2007 68, 485 61, 385 P&L indicators, RUR mln 2008 2009 40, 379 32, 015 23, 410 15, 870 6, 280 5, 156 8, 510 ** 2, 296 4, 465 Revenues EBITDA Gross profit from sales Net profit Key profitability ratios Indicator 2007 2008 2009 Sales margin,% 10.23% 7.53% 1
Slide 11: 1H 2010 Financial Performance
1H 2010 Financial Performance* 55, 925 Key financial figures, RUR mln 41, 209 35, 336 1H 2009 1H 2010 24, 812 18, 088 13, 131 9, 544 8, 682 Revenues EBITDA Gross profit from sales Net profit 60,21% 63,18% Key profitability ratios 1H 2009 1H 2010 32,34% 1,85% 2,02% 23,16% 21,07% 23,48% 1,16% 1,29% EB
Slide 12: Financial Forecast for 2010-2012
Financial Forecast for 2010-2012 Key RAB-based parameters 2010 2011 2012 Tariff MW/RUR per month 86,869 116,734 145,591 Tariff growth, % 51.1% 32.9% 24.7% Return on initial invested capital 3.9% 5.2% 6.5% Return on new invested capital 11% 11% 11% Initial RAB, RUR bln 647.6 744.4 851.2 Financial for
Slide 13: Credit portfolio and liquidity
Credit portfolio and liquidity 1H 2010 DEBT/EBITDA = 0.17 Strong Liquidity RUR 50 bln – the total volume of registered six 1H 2010 Net debt = - 47, 597 RUR mln issues with an up to 10 year maturity period (registration date – November 5th, 2009) RUR 45 bln – the total volume of available credit Cred
Slide 14: Federal Grid: A Leading Blue-chip Company
Federal Grid: A Leading Blue-chip Company 60,0% EV/EBITDA EV/Sales FEES Company Country EV /RAB MSCI Russia (2010E) (2010E) 50,0% 40,0% Developed countries 30,0% ELIA Belgium 10.7 5.3 1.19 20,0% Terna S.p.A. Italy 9.7 7.1 1.31 10,0% REN Portugal 7.0 4.9 1.14 Source: MICEX, MSCI Barra 0,0% Red Electr
Slide 15: International presence on capital markets
International presence on capital markets: DR listing on Deutsche Börse in 4Q 2010 – 1Q 2011 DR listing goals Federal Grid Increasing liquidity and market capitalization Global investors market Utilities participants platform Presence of European utilities investors Positioning the Expanding the Pre
Slide 16: Summary
Summary Leading Russian Blue-chip Company Unique position in the Russian market, the largest Russian utility company by market cap Guaranteed return on investment Transition to the RAB tariff system which stimulates investment and efficiency Sound financial position Strong growth in revenues, EBITDA
Slide 17: Contacts
Contacts Federal Grid Company of Unified Energy System 5A, Akademika Chelomeya Str., Moscow, Russia, 117630 Investor Relations Department Alexander Duzhinov Head of IR Tel.: +7 (495) 710 90 64 Mob.: +7 (916) 041 80 53 E-mail: ir@fsk-ees.ru Page 16
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