Fgc Rosseti · RUS:FEES

Fgc Rosseti — Federal Grid Company — Investor Presentation (August 2012)

24 slides from Fgc Rosseti's investor presentation, August 2012

  1. Slide 1: Investor Presentation August 2012

    LISTED STANDARD DEPOSITARY RECEIPTS Investor Presentation August 2012

  2. Slide 2: Federal Grid Company: Investment Profile

    Federal Grid Company: Investment Profile Scale of Business Growth Prospects  The largest publicly traded electricity transmission  Anticipated electricity demand 2010 – 2020 CAGR company in the World (1): over 120,000 km of 2.4% of transmission lines with total capacity of more than  System upgra

  3. Slide 3: Key Performance Indicators

    Key Performance Indicators Key financial figures 2011 2010 Change RUR MM Revenue 139,571 113,330 23% Adj. Operating profit (1) 46,614 29,941 56% Adj. EBITDA (1) 83,760 67,717 24% Adj. EBITDA margin (1) 60.0% 59.8% n/a Adj. Profit for the period (1) 38,241 27,910 37% CAPEX (excl.VAT) 155,120 142,743

  4. Slide 4: Company Development

    Company Development Federal Grid Company History – Key Milestones Incorporated in 2002 2008 2009 2010 2011 June 2008 February 2009 January 2010 March 2011 • Federal Grid shares listed on RTS • Inclusion of Federal Grid in MSCI • Change from ―cost plus‖ to RAB • LSE listing and MICEX Russia and MSCI

  5. Slide 5: 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

  6. Slide 6: Investment Programme: 2012 – 2014

    Investment Programme: 2012 – 2014  On 11 May 2012 the Ministry of Energy approved Federal Grid Company’s investment programme for 2012 – 2014  The approved plan entails investments totalling RUR 505 billion into the commissioning of 50,386 MVA of new transformer capacity and 13,147 kilometres of n

  7. Slide 7: 2012 – 2014 Investment Programme

    2012 – 2014 Investment Programme RUR 11.3 bn (2.2%) RUR 4.7 bn (1.0%) Innovations and Acquisition of energy efficiency production facilities RUR 30.8 bn (6.1%) RUR 1.2 bn (0.2%) Other projects R&D (planned) RUR 191.5 bn (37.9%) RUR 265.4 bn (52.6%) Technical upgrades New construction and renovation

  8. Slide 8: Key Investment Projects

    Key Investment Projects Capacity provision of Kalininskaya Electricity supply of East Siberia NPP generating unit #4 (1,000 MW) Pacific Ocean oil pipeline Start Date: 2009 Start Date: 2010 Due Date: 2012 Due Date: 2016 Underground cabling Construction of Zeyskaya HPP— in St. Petersburg Russian-Chine

  9. Slide 9: 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

  10. Slide 10: Capital Structure

    Capital Structure Federal Grid Ratings Credit Portfolio (as of 3 July 2012) S&P Same as Sovereign: BBB Outlook Stable Bond issue RUR MM Interest Rate, % Maturity/Put date Moody’s One Notch Below Sovereign: Baa2 Series 6 10,000 7.15 September 2013 Outlook Stable Series 7 5,000 7.50 October 2015 Serie

  11. Slide 11: Debt Profile Compares Favourably with International Peers

    Debt Profile Compares Favourably with International Peers ... Net Debt / EBITDA, 2011 Total Debt / (Total Debt + Equity), 2011 5.0 80% 72% 4.2x 4.0 61% 3.6x 56% 60% 55% 3.2x 50% 3.1x 3.0 2.7x 44% 43% 2.2x 40% 35% 2.0x 2.0 1.0x 20% 1.0 0.7x 13% 0.0 0% Energy Energy Int. Power Enel National Federal En

  12. Slide 12: RUR Bonds and RUR Eurobonds – Current Yields

    RUR Bonds and RUR Eurobonds – Current Yields Strong Presence on the Local Market OFZ Curve Source: MICEX as of 19.07.2012 12

  13. Slide 13: IR Contacts

    IR Contacts Contacts for Institutional Investors and Analysts  Head of Investor  Tel.: +7 495 710 9064 Relations:  Mob: +7 916 041 8053 Alexander Duzhinov  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

  14. Slide 14: Appendix

    Appendix Federal WwW Grid Company ")

  15. Slide 15: Financial Highlights

    Financial Highlights Revenue EBITDA adj. (1) and Margin RUR MM RUR MM % 90,000 83,760 139,571 95% 150,000 67,717 113,330 60,000 70% 100,000 87,580 42,619 30,000 59.8% 60.0% 45% 50,000 48.7% 0 0 20% 2009 2010 2011 2009 2010 2011 EBITDA Маржа CAPEX (excl. VAT) Profit for the period adj. (1) and Margin

  16. Slide 16: Operational Overview

    Operational Overview Total Transformer Capacity Electricity Transmission Thousands MVA bn kWh 350 600 330 471 485 453 311 306 400 300 200 0 0 2009 2010 2011 2009 2010 2011 Transmission Grid Length Thousands km 130 125 121 122 120 110 0 2009 2010 2011 Source Company data 16

  17. Slide 17: Revenue and Cost Structure

    Revenue and Cost Structure Revenue Structure Cost Structure RUR MM RUR MM 100,750 139,571 100,000 140,000 2,571 2,246 87,873 24,894 78,216 80,000 16,336 120,000 3,977 113,330 4,427 22,278 889 13,781 3,070 60,000 15,942 6,933 100,000 134,754 24,046 40,000 15,431 20,114 87,580 3,990 109,371 3,348 15,9

  18. Slide 18: Change in EBITDA

    Change in EBITDA RUR MM 16,043 (+24%) 100,000 26,241 3,153 (1,850) (3,932) 83,760 (4,456) (3,113) 75,000 67,717 50,000 25,000 0 EBITDA Adj. 2010 Revenue Increase Finance Income Payroll Increase Electricity and Impairment (PPE, Other EBITDA Adj. 2011 Decrease Repair Expense AR) Decrease Source Compan

  19. Slide 19: Free Cash Flow

    Free Cash Flow RUR MM 13,573  Cash and cash equivalents at the beginning of the period 68,645  Net cash generated by operating activities  (124,743)  Net cash used in investing activities 68,152  Net cash generated by financing activities 12,054  Net increase in cash and cash equivalents 25,62

  20. Slide 20: Development of the Russian Energy Sector

    Development of the Russian Energy Sector Plan for Development of Electric Energy Facilities  Approved by Government of the Russian Federation  Includes:  Objectives and development priorities for next 15 years  Electric energy consumption forecast  Deployment plan for electric energy facilities

  21. Slide 21: Smart Grid — New Quality of Russian Energy Industry

    Smart Grid — New Quality of Russian Energy Industry Smart Grid is a brand-new grids setup based on new principles and  Integrating all types of generation technologies related to electric energy transmission and transformation, (including small generators) which allows for: and all types of consume

  22. Slide 22: Smart Grid: Pilot Projects in the Northwest and East

    Smart Grid: Pilot Projects in the Northwest and East Smart Grid Northwest St. Petersburg Northwest Moscow Center East Volga Smart Grid Urals East South Siberia Khabarovsk Vladivostok Pilot projects in the Northwest are focused on: Pilot projects in East provide for:  Ensuring required reliability o

  23. Slide 23: Prospects for Energy Bridge Development in Russia

    Prospects for Energy Bridge Development in Russia Export/import Export/import to/ to/from Finland from Norway West-East Energy Integration of Siberia Bridge and East energy systems Moscow St. Petersburg UES of Northwest Export to Turkey UES of Center UES of East UES of Siberia Export to UES of UES o

  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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