Fgc Rosseti · RUS:FEES

Fgc Rosseti — Federal Grid Company of Unified Energy System — Investor Presentation (December 2012)

22 slides from Fgc Rosseti's investor presentation, December 2012

1. Slide 1: Investor Presentation December 2012

   LISTED STANDARD DEPOSITARY RECEIPTS Investor Presentation December 2012

2. Slide 2: Key Corporate Developments in 2012

   Key Corporate Developments in 2012 Decision to transfer control  On 12 May 2012, the Russian Government decided to transfer over Holding MRSK the functions of Holding MRSK’s sole executive body to Federal Grid Company  On 30 June 2012 the agreement on executive body was approved by the Board of Di

3. Slide 3: Operational Overview

   Operational Overview Electricity Transmission Volume Total Transformer Capacity in Operations Bn kWh (for respective period) GVA (end of period) 0 Substations(1) Transmission Grid Length in Operations Units (end of period) ‘000 km (end of period) 0 0 Source Company data Notes: 1. Including leased su

4. Slide 4: RAB Regulation: Transforming Approach to Financing

   RAB Regulation: Transforming Approach to Financing Regulatory Asset Base (RAB) Regulation  On 12 May 2012, Russia’s Federal Tariff Service approved tariffs under RAB regulation for 2012 – 2014  Federal Grid Company tariff was increased by 11.0% starting from 1 July 2012, by 9.4% starting from 1 Ju

5. Slide 5: Key Financial Results

   Key Financial Results Revenue Adjusted EBITDA RUB Bn RUB Bn -6.0% -16.9% Adjusted EBITDA Margin Adjusted Profit for the Period Net Debt Position RUB Bn RUB Bn -38.6% Adjusted Profit Margin Leverage Source: Company IFRS financials Note: Definitions for terms marked in this presentation with capital l

6. Slide 6: Revenue Structure Analysis

   Revenue Structure Analysis H1 2011 H1 2012 Y-o-Y Change % RUB Bn RUB Bn Transmission fee 69.4 65.3 (5.8) Electricity sales 1.1 0.9 (15.7) Other revenues 0.8 0.7 (13.0) Total Revenue 71.2 66.9 (6.0) Other Operating Income 1.6 1.4 (8.8) Total Revenue  The Group’s electricity transmission fee decrease

7. Slide 7: Operating Cost Structure

   Operating Cost Structure (1) H1 2011 % of Total H1 2012 % of Total Y-o-Y Operating Operating Change % RUB Bn Costs RUB Bn Costs D&A (2) 16.1 35.2 20.5 38.2 27.0 Personnel Related Expenses 12.9 28.2 13.0 24.3 1.4 Purchased electricity 6.8 14.9 6.4 12.0 (4.7) Materials, Repairs and Maintenance 2.2 4.8

8. Slide 8: Earnings Analysis

   Earnings Analysis Adjusted EBITDA Bridge RUB Bn Adjusted Profit Bridge RUB Bn Source: Company IFRS financials Note: Definitions for terms marked in this presentation with capital letters (including certain non--IFRS financial information) are provided at the end of this presentation 8

9. Slide 9: Free Cash Flow

   Free Cash Flow Free Cash Flow in H1 2012 RUB Bn Source: Company IFRS financials Note: Definitions for terms marked in this presentation with capital letters (including certain non-IFRS financial information) are provided at the end of this presentation 9

10. Slide 10: Debt Capital Structure

    Debt Capital Structure Net Debt Position RUB Bn  Total debt amounted to RUB 153.3 Bn as of 30 June 2012  77% of total debt are RUB bonds and the remaining are primarily bank loans  100% of total debt are unsecured and rouble nominated  Net debt position of RUB 106.8 Bn as of 30 June 2012 implied

11. Slide 11: Events after reporting date (non-IFRS data)

    Events after reporting date (non-IFRS data) Debt Maturity profile as of 15.11.2012 Events after the reporting date RUB Bn  In August 2012 Federal Grid placed 10-year RUB 10 billion local bond issue with CPI-linked coupon (1)  In October 2012 Federal Grid successfully placed 3 bond issues: 4-year R

12. Slide 12: Investment Program: 2013 – 2017

    Investment Program: 2013 – 2017  On 31 October 2012, the Ministry of Energy approved Federal Grid Company’s investment program for 2013 – 2017  The approved plan entails investments totalling RUB 776 Bn (including VAT) into the commissioning of 66,870 MVA of new transformer capacity and 16,985 kil

13. Slide 13: 2013 – 2017 Investment Programme

    2013 – 2017 Investment Programme RUB 12.3 Bn (1.6%) RUB 2.2 Bn (0.3%) Innovations and Acquisition of energy efficiency production facilities RUB 23.5 Bn (3.0%) RUB 4.1 Bn (0.5%) Other projects R&D (planned) RUB 266.3 Bn (34.3%) RUB 467.1 Bn (60.3%) Technical upgrades New construction and renovation

14. Slide 14: Key Investment Projects 2013-2017

    Key Investment Projects 2013-2017 Provision of power (1,000MW) Provision of power (1,170MW) Construction of 220kV Construction of power supply Provision of power (450 MW) Construction of power supply generated by Power Unit No4 generated by Power Unit No1 transmission line Pechorskaya facilities for

15. Slide 15: Thank you

    O 4,8 - Wy, Ms MG ° Thank you ay GRD ra

16. Slide 16: Appendix

    Federal WW Grid Company "S'

17. Slide 17: Balance Sheet

    Balance Sheet Consolidated Interim Statement of Financial Position RUB MM 30 June 2012 31 December 2011 ASSETS Non-current assets Property, plant and equipment 1,022,111 980,677 Intangible assets 7,498 6,973 Investments in associates 1,506 910 Available-for-sale investments 56,420 69,979 Long-term p

18. Slide 18: Profit and Loss Statement

    Profit and Loss Statement Consolidated Interim Statement of Comprehensive Income RUB MM Six months ended Six months ended 30 June 2012 30 June 2011 Revenues 66,909 71,217 Other operating income 1,447 1,587 Operating expenses (53,584) (45,657) Gain on disposal of available-for-sale investments - 31,1

19. Slide 19: Cash Flow Statement

    Cash Flow Statement Consolidated Interim Statement of Cash Flows RUB MM Six months ended Six months ended 30 June 2012 30 June 2011 CASH FLOWS FROM OPERATING ACTIVITIES: Profit before profit tax 4,564 55,640 Adjustments to reconcile profit before income tax to net cash provided by operations Depreci

20. Slide 20: Glossary

    Glossary General  The Unified National Electric Grid – UNEG  OJSC “Federal Grid Company of Unified Energy System” – Federal Grid Company  OJSC “FGC UES” and its subsidiaries – the Group  OJSC “Interregional Distribution Grid Companies Holding – Holding MRSK  Russian Federal Tariff Service – FTS

21. Slide 21: Contacts for Institutional Investors and Analysts

    Contacts for Institutional Investors and Analysts  Head of Investor Relations: Alexander Duzhinov Tel.: +7 495 710 9064 Mob: +7 916 041 8053 Fax: +7 495 710 9641 E-mail: ir@fsk-ees.ru 21

22. 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 Company to con

Federal Grid Company of Unified Energy System — Investor Presentation (December 2012) on 6ix