TGK-1 · RUS:TGKA

TGK-1 — Tgc-1 — VTB Capital Investment Forum "Russia Calling!" 2010

16 slides from TGK-1's conference presentation, Oct 7, 2010

  1. Slide 1: TGC-1: Unique Power Generation Company of Russia

    TGC-1: UNIQUE POWER GENERATION COMPANY OF RUSSIA October 7, 2010 VTB Capital Investment Forum “Russia Calling!” Moscow

  2. Slide 2: TGC-1 at a glance

    TGC-1 at a glance St. Petersburg and Murmansk region Karelia Leningrad region • 11 CHPPs: 2,805 MW / • 2 CHPPs: 345 MW /1,846 • 1 CHPP: 280MW/689 11,827 GCal-h GCal-h GCal-h • 6 HPPs: 664 MW • 17 HPPs: 1,595 MW • 17 HPPs: 633 MW • 1 diesel PP: 2 MW 2009 key figures Position in the industry Electrici

  3. Slide 3: Regions of operation

    Regions of operation  Economically developed St. • Population of 0.9 million Petersburg and Leningrad region consume c.2/3 of electricity • Strong industrial presence, particularly, metals and mining produced in the North-West region Murmansk companies region • Low temperatures drives high  Major

  4. Slide 4: Shareholders

    Shareholders  Share capital – RUR 38.5 bn  Over 320,000 shareholders  Shares listed on MICEX (A1 quotation list) and on RTS  Standard&Poor’s corporate governance score since 2006 (GAMMA-5 for 2009)  One of the most professional IR and shareholders relations team in Russian utilities (Thomson Re

  5. Slide 5: CAPEX

    CAPEX  Total investment program provides for capacity additions of over 1.6 GW until 2015  CAPEX financing in 2009 – RUR 20.4 bn (incl. VAT), in 2010 – RUR 17.9 bn (incl. VAT)  Highly-effective combined-cycle (CCGT) technology to take up c.30% of thermal capacity by 2015  IRR for new CHPs - 14-1

  6. Slide 6: Major outstanding projects

    Major outstanding projects 2 new gas-fired CCGT-units (360 MW) at Pervomayskaya CHPP-14 in St. Petersburg  CAPEX: RUR 15,7 bn (ex. VAT)  Commissioning in winter 2010 - 180MW/160Gcal; 2011 - 180MW/160Gcal New gas-fired 450 MW CCGT-unit at Yuzhnaya CHPP-22 in St. Petersburg  CAPEX: RUR 11.6 bn (ex.

  7. Slide 7: Spin-off of heat transmission business

    Spin-off of heat transmission business City of Heat output breakdown in St. Petersburg TGC-1 St.Petersburg 16% ≤75% ≥25% 43% District networks (“last mile”) Transmission grids in in areas supplied by TGC-1, St.Petersburg (mostly large St. Petersburg Heating Grid currently owned by GUP transmission p

  8. Slide 8: Export

    Export  TGC-1 is the only company among TGKs/OGKs exporting electricity directly  Operational capacities to export electricity to Estonia (c. 40MW)  Export sales serve as a natural hedge for loans and contracts denominated in foreign currency Borisoglebskaya HPP max. export capabilities up to 56

  9. Slide 9: 1H 2010 operational results

    1H 2010 operational results  The increase in demand of electricity in regions of operations: + 6.2% in St. Petersburg and Leningrad region, +7.6% in Karelia, +0.3% in Murmansk region  Capacity utilization factor increased 0.5 p.p. to 52.6%  Improvement of heat rates as a result of higher generati

  10. Slide 10: Key 1H 2010 IFRS financials (mn RUR)

    Key 1H 2019 IFRS financials (mn RUR)  Largely positive half yearly results: very good 1Q and a not bad 2Q  Margins were heavily influenced by high-base effect 1H 2010 1H 2009 Revenue 27 203,2 21 245,6 Electricity sales 9 519,7 6 878,6 Capacity sales 4 195,6 3 229,3 Heat sales 13 200,0 10 616,8 Oth

  11. Slide 11: Outlook for 2010

    Outlook for 2010  FY2010 financial results to be well above the plan  2H 2010 – commissioning of 180MW at Pervomayaskaya CHPP, 450MW at Yuzhnaya CHPP, 30MW at Svetogorskaya HPP  Heating grids in St. Petersburg to fully transferred to St. Petersburg Heating Grid company in early 2011, evaluation o

  12. Slide 12: Key earnings drivers

    Key earnings drivers Steady stream of revenues from new capacity commissioned under Capacity Supply Agreement (DPM) Growth of unregulated electricity sales from efficient gas-fired plants and low-cost hydropower plants on the back of spot prices growth and further deregulation Prospect of introducti

  13. Slide 13: Corporate governance

    Corporate governance STRUCTURAL Disposal of hydro assets or merger of TGC-1 with Mosenergo is not on agenda INTEGRITY  TGC-1 is one of the few Russian utilities to start paying dividend as of 2009 RESPONSIBILITY  Gazprom to adopt uniform dividend policy for its electric utilities by year end MINOR

  14. Slide 14: Investment case

    Investment case EFFICIENT COGENERATION EXPOSURE TO HYDRO OPERATIONS IN DEVELOPED RUSSIAN REGIONS WITH STEADY CONSUMPTION EXPOSURE TO ELECTRICITY EXPORT INVESTMENT PROGRAM ON TRACK, VALUE-ACCRETIVE CAPEX POWERFUL STRATEGIC SHAREHOLDERS LOW CORPORATE GOVERNANCE RISKS EFFICIENT AND EXPERIENCED MANAGEME

  15. Slide 15: Thank you!

    THANK YOU! TGC-1: UNIQUE POWER GENERATION COMPANY OF RUSSIA

  16. Slide 16: IR contacts

    IR contacts Olga Solomina Head of Corporate Management Department Telephone: +7 (812) 901-3113 Fax: +7 (812) 494-3670 Е-mail: Solomina.ON@tgc1.ru Timur Akhmedzhanov Head of Investor Relations Telephone: + 7 (812) 901-3296 Fax: +7 (812) 901-3298 E-mail: Ahmedzhanov.TG@tgc1.ru E-mail: ir@tgc1.ru TGC-1

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