Fgc Rosseti · RUS:FEES

Fgc Rosseti — Federal Grid Company of Unified Energy System — Investor Presentation (May 2013)

24 slides from Fgc Rosseti's investor presentation, May 2013

  1. Slide 1: Investor Presentation May 2013

    LISTED STANDARD DEPOSITARY RECEIPTS Investor Presentation May 2013

  2. Slide 2: FY 2012 Summary

    FY 2012 Summary Key Events FY 2012 Consolidated Financial Results  Revenue increased to RUB 140.3 Bn mainly due to growth of tariffs  On 11 May 2012, the Ministry of Energy of the Russian Federation for transmission services established by the the Russian Federal approved the adjusted investment p

  3. Slide 3: RAB Regulation: Transforming Approach to Financing

    RAB Regulation: Transforming Approach to Financing Regulatory Asset Base (RAB) Regulation  On 12 May 2012, the Russian 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

  4. Slide 4: 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

  5. Slide 5: Key Financial Results

    Key Financial Results Revenues Adjusted EBITDA RUB Bn RUB Bn 200 100 140.3 83.8 82.1 150 139.6 75 67.7 113.3 100 50 50 25 59.8% 60.0% 58.5% 0 0 2010 2011 2012 2010 2011 2012 Adjusted EBITDA Margin Adjusted Profit for the Period Net Debt Position RUB Bn RUB Bn 38.2 40 180 168.0 30.0 30 27.9 140 20 10

  6. Slide 6: Revenues Structure Analysis

    Revenues Structure Analysis 2011 2012 Y-o-Y Change % RUB Bn RUB Bn Transmission fee 134.754 136.559 1.3 Electricity sales 2.246 2.251 0.2 Other revenues 2.571 1.503 (41.5) Total revenues 139.571 140.313 0.5  The Group's revenues from electricity transmission services increased Total Revenue by RUB

  7. Slide 7: Operating Cost Structure

    Operating Cost Structure (1) 2011 % of Total 2012 % of Total Y-o-Y Operating Operating Change % RUB Bn Costs RUB Bn Costs D&A (2) 34.1 33.8 44.5 40.2 30.6 Personnel Related Expenses 24.0 23.9 26.3 23.8 9.4 Purchased electricity 13.8 13.7 13.3 12.0 -3.3 Materials, Repairs and Maintenance 6.0 5.9 6.2

  8. Slide 8: Debt Capital Structure

    Debt Capital Structure Net Debt Position RUB Bn  Total debt amounted to RUB 216.4 Bn as of 31 December 2012  75% of total debt is RUB bonds, 8% is eurobonds and the remaining part is primarily bank loans  100% of total debt is unsecured and rouble denominated  Net debt position of RUB 168.0 Bn a

  9. Slide 9: Events after reporting period (non-IFRS data)

    Events after reporting period (non-IFRS data) Debt Maturity profile as of 16.04.2013 Events after the reporting date RUB Bn  In January 2013, the Group placed 7-year 10 billion local bond issue with the coupon of 8.0%.  In January and March 2013, the Group made a full early repayment of two loans

  10. Slide 10: Earnings Analysis

    Earnings Analysis Adjusted EBITDA Bridge RUB Bn 90 83.8 85 0.7 5.7 0.1 82.1 0.5 80 -2.0 -4.2 -0.2 -2.3 75 70 Adj. EBITDA Revenue Other Purchased Materials, Personnel (Reversal)/ Finance Other Adj. EBITDA 2011 Increase operating Electricity Repairs and Related Accrual of income Operating 2012 income

  11. Slide 11: Free Cash Flow

    Free Cash Flow Free Cash Flow in 2012 RUB Bn 100 82.1 80 -5.8 70.0 -2.0 60 -4.3 40 20 0 -20 -40 -60 -80 -153.3 -100 -11.7 -95.0 -120 Adj. EBITDA Changes in Income Tax Non-cash Operating Cash Capex Interest Paid Free Cash Flow Working Capital Paid Adjustments Flow Source: Company IFRS financials Note

  12. Slide 12: Restructuring of Government Controlled Grid Assets (I)

    Restructuring of Government Controlled Grid Assets (I)  On 22 November 2012 the President of the Russian Federation signed a decree outlining the following restructuring steps in Russian electricity transmission and distribution sector:  OJSC “IDGC Holding” to be renamed to OJSC “Russian Grids” 

  13. Slide 13: Restructuring of Government Controlled Grid Assets (II)

    Restructuring of Government Controlled Grid Assets (II) Current Structure  On 5 April 2013 Board of Directors of Russian Grids approved key parameters for the new common share issue by Russian Grids and proposed those for Minority Russian Minority extraordinary shareholder meeting approval, schedul

  14. Slide 14: Thank you

    Thank you Appendix 15

  15. Slide 15: Appendix

    Federal WY Grid Company A

  16. Slide 16: 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

  17. Slide 17: 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

  18. Slide 18: 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

  19. Slide 19: Balance Sheet

    Balance Sheet Consolidated Interim Statement of Financial Position RUB MM 31 December 2012 31 December 2011 ASSETS Non-current assets Property, plant and equipment 1,096,535 980,677 Intangible assets 9,319 6,973 Investments in associates 1,403 910 Available-for-sale investments 50,617 69,979 Long-te

  20. Slide 20: Profit and Loss Statement

    Profit and Loss Statement Consolidated Interim Statement of Comprehensive Income RUB MM 31 December 2012 31 December 2011 Revenues 140,313 139,571 Other operating income 3,543 7,793 Operating expenses (110,630) (100,750) Gain on disposal of available-for-sale investments - 31,115 Loss on re-measurem

  21. Slide 21: Cash Flow Statement

    Cash Flow Statement Consolidated Interim Statement of Cash Flows RUB MM Profit before income tax 8,799 62,863 Adjustments to reconcile profit before income tax to net cash provided by operations Depreciation of property, plant and equipment 43,908 33,187 Loss / (gain) on disposal of property, plant

  22. Slide 22: Glossary

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

  23. Slide 23: 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  Nadezhda Sukhova Tel.: +7 495 710 9541 E-mail: sukhova-nv@fsk-ees.ru  Egor Toropov Tel.: +7 495 710 9333 ext. 22

  24. Slide 24: 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

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