Inter Rao · RUS:IRAO

Inter Rao — Inter RAO UES — Merger or Acquisition (March 2012)

22 slides from Inter Rao's merger presentation, Mar 16, 2012

  1. Slide 1: Generating Assets: Target Shareholding Structure

    INTER RAO UES Generating Assets: Target Shareholding Structure March,16 2012

  2. Slide 2: 1. Strategy recap and update

    INTER RAOUES 1. Strategy recap and update

  3. Slide 3: INTER RAO at a Glance

    INTER RAO at a Glance A Leading Russian Power Company Diversified Group Structure  Diversified power holding involved in electricity/heat generation and supply, export/import of electricity and engineering  Operates and manages 27 thermal, 2 hydro power plants and 1 wind power farm Domestic  Tota

  4. Slide 4: Strategic Development

    Strategic Development Strategic Objectives Strategic Steps and Priorities Key Targets 2011E 2015E  Organic growth through construction of new Installed electricity capacity,  Shareholder value creation electricity generation capacity in Russia GW 29 40  Selective expansion into target foreign Sha

  5. Slide 5: Minority Stakes Disposal

    Minority Stakes Disposal Portfolio of Minority Stakes(1) Value-Creative Management INTER RAO's Stake MCap, As of Current Current  Minority participations are split into two categories with respective agreed Asset Sold/Swapped strategies for each: $m. 30 Jun 2011 Stake Value, $m. RusHydro 11 037 1.6

  6. Slide 6: Consolidation of Generating Assets by InterRAO

    Consolidation of Generating Assets by InterRAO 75% 82% 27% JSC «OGK-1» JSC «OGK-3» JSC «Bashkirenergo» (generating assets) • OGK-1 comprises of 6 thermal power plants with • OGK-3 owns 6 thermal power plants with total total installed capacity of 9,861 MW and 2,398 installed capacity of 8,357 MW and

  7. Slide 7: 2. Transaction Details

    INTER RAOUES 2. Transaction Details

  8. Slide 8: Transaction Overview

    Transaction Overview Short overview Consolidation of certain generating assets by JSC “INTER RAO UES” implies obtaining 100% ownership in JSC "OGK-1”, JSC “OGK-3” and JSC “Bashenergoaktiv”⁽¹⁾ All minority shareholders of JSC “OGK-1”, JSC “OGK-3”, JSC “Bashenergoaktiv” will be granted an opportunity

  9. Slide 9: Transaction Structure: Consolidation of 100% in OGK-1 and OGK-3

    Transaction Structure: Consolidation of 100% in OGK-1 and OGK-3 Spin-off of OGK-1’ and OGK-3’ followed by a Merger of OGK-1 and OGK-3 with Target shareholding merger with INTER RAO – ElectroGeneration INTER RAO structure State and state- State and state- INTER RAO INTER RAO State and owned owned INT

  10. Slide 10: Transaction Structure: Bashkirenergo Reorganisation and Consolidation in Bashenergoaktiv

    Transaction Structure: Bashkirenergo Reorganisation and Consolidation of 100% in Bashenergoaktiv Reorganization of Bashkirenergo via a disproportionate split of the parent company into Merger of Bashenergoaktiv Target shareholding structure BashGridco and Bashenergoaktiv with INTER RAO immediate mer

  11. Slide 11: Conversion Ratios

    Conversion Ratios Transaction deal metrics Company Conversion ratios ⁽¹⁾ Buy-back price, RUB. INTER RAO - 0.0284 OGK-1 24 0.6816 OGK-3 40 1.1360 BashGenco (common) 602.8 17.12 BashGenco (preferred) 458.1 13.01 Methodology for determining conversion ratios  An independent appraiser, OOO Institute of

  12. Slide 12: Key Corporate Actions

    Key Corporate Actions № Action Timeline INTER RAO BoD on matters of EGM call regarding the reorganization and developing a position on the issues of reorganizing 1 15 March 2012 subsidiaries and affiliates (OGK-1, OGK-3, Bashkirenergo, IRAO-ElectroGeneration) 2 INTER RAO’s shareholders record date (

  13. Slide 13: OAO INTER RAO UES Shareholding Structure Evolution

    OAO “INTER RAO UES” Shareholding Structure Evolution  Post-deal shareholding structure is based on share swap coefficients implied that all OGK-1/OGK-3/Bashenergoaktiv minority shareholders convert their stakes into JSC “INTER RAO UES” shares  The proposed reorganization will increase INTER RAO’s

  14. Slide 14: A Move to the Target Generation Assets Management Structure

    A Move to the Target Generation Assets Management Structure Current Management Structure Target Management Structure INTER RAO INTER RAO 68% 100% JSC “TGK-11” 100% LLC “MC INTER RAO – 100% LLC “MC INTER RAO – LLC “MC INTER RAO – ElectroGeneration” ElectroGeneration” HeatGeneration” 27% JSC “Bashkire

  15. Slide 15: Conclusion

    Conclusion Transactions continue INTER RAO's transformation into the leading Russian Utility Significant simplification of structure and increased efficiency and transparency Enables INTER RAO to maximise financial synergies of consolidation and accelerate delivery Increased free-float and liquidity

  16. Slide 16: 3. Minority Stakes Disposal: Enel OGK-5

    3. Minority Stakes Disposal: Enel OGK-5

  17. Slide 17: Enel OGK-5 Equity Stake Sale

    Enel OGK-5 Equity Stake Sale Transaction Rationale  Equity stake sale on market terms pursuant to INTER RAO Electric Power Assets Management Guidelines;  Further implementation of the strategy for establishing a target generation assets ownership structure;  Raising significant capital to fund IN

  18. Slide 18: Appendix

    INTER RAOUES Appendix

  19. Slide 19: Bashkirenergo overview

    Bashkirenergo overview Republic of Bashkortostan Company overview Buyskaya Karmanovskaya power plant Yanaul Tatishly BashRTS-Neftekamsk BashRES-Neftekamsk  Bashkirenergo is a large holding company engaged in Arlan Tyuldi Shtandy Kubiyazy Lemez-Tamak electricity and heat generation, transmission and

  20. Slide 20: Corporate structure of Bashkirenergo

    Corporate structure of Bashkirenergo POWER GENERATION POWER TRANSMISSION ENGINEERING AND SERVICE Electric and thermal energy Electric and thermal energy generation transmission (high-voltage) LLC Energoremont LLC BGK LLC Energoteploremont LLC BSK LLC PGU TEC-5 Electric and thermal energy LLC Energoa

  21. Slide 21: Inter RAO Generating Assets: 2011 Production Highlights

    Inter RAO Generating Assets: 2011 Production Highlights (incl. generating assets of Bashkirenergo) Installed Capacity Electricity Generation Evolution TWh 125.6 +6,8% 133.9 Total: 26.8 GW 140 120 22,8 22,6 8,7 100 9,1 33,3 80 32,1 60 40 55,5 52,4 20 9,2 13,5 0 2010 2011 INTER RAO- Electrogeneration

  22. Slide 22: Thank you for your attention!

    THANK YOU FOR YOUR ATTENTION!

Inter RAO UES — Merger or Acquisition (March 2012) on 6ix