IR PRESENTATION
Preliminary Results Y2011
The Russia Forum 2012 (Troika Dialog)
January 31 – February 03, 2012
Disclaimer
2
The information in this presentation was received from the sources, which in opinion of IDGC of Centre (“the ...
Key strategic priorities of the Company
3
I.
205
121
85
79
77
57
52
38
23
18
МОЭСК
МРСК Центра
МРСК ЦП
ЛенЭнерго
МРСК Волги
МРСК Урала
МРСК Сибири*
МРСК Юга*
МРСК СЗ*
...
IDGC of Center
1 Belgorodenergo
2 Bryanskenergo
3 Voronezhenergo
4 Kostromaenergo
5 Kurskenergo
6 Lipetskenergo
7 Orelener...
Board of directors approved
the Regulations
on the dividend policy
based on a system
executing a set of criteria
The first...
Strategic goals of the Company (1)
Improvement of quality and reliability of customer services
• implementation of product...
Strategic goals of the Company (2)
Improving the energy efficiency and providing the
innovative development
• full impleme...
IDGC Holding Minor shareholdres
50.23% 49.77%*
Company structure and key shareholders
Russian Federation
53.69%
IDGC of Ce...
5 Committees:
Share capital structure and
corporate governance
10
General Meeting of
Shareholders
Board of Directors
Audit...
Revenue forecast for
2012 is RUR 1,8 bn*
29%
25%15%
13%
8%
7%
3%
СМР в рамках концессионных соглашений
СМР по прямым догов...
Financial and operating indicators: preliminary results 2011
(RAS)
12
II.
Key RAS figures 2009-2011FF
13
EBITDA
RUR bn
Net Profit,
RUR bn
EBITDA
margin %
Net Profit
margin %
Productive
supply
(inc...
Dynamics of costs structure
14
* - Forecast Fact
Type of cost, RUR bn 2009 2010 2011FF* %2011/2010
Purchased energy for
lo...
Loan portfolio dynamics & credit rating
Recommended
ratio Net Debt/EBITDA = 3
Net debt/EBITDA, RUR billion
Structure of lo...
16
Year
Commissioning,
RUR billion
Commissioning power
on fixed assets
km MVA
2009 7,7 2414 877
2010 10,0 4155 1050
2011* ...
Tariffs 2012 – main schedule points
Government approved the Decree 1178 of 29 December, 2011 "On the pricing of regulated ...
Key points of 1178 Decree
18
Must be approved by the
FTS of Russia (RECs’ can
not make changes)
Criteria for
LPR regulatio...
M&A projects - grid assets integration and key steps for
investment attractiveness improvement
19
III.
• Providing monopoly on power grid services market in the regions of
presence with more than 97% share;
• Long-term target...
M&A projects - grid assets integration
TGCs in IDGC of Centre service area
9
14 18
23 25 26
39
53
62
70
102
0
20
40
60
80
...
08.2010
Confirmation
of presence in
RTS EU and
RTS-2
- forecast
22
Stock performance and liquidity increase
Company ‘s
sha...
-90%
-80%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
Август2008
Октябрь2008
Декабрь2008
Февраль2009...
Attractive object for investment
External favorable factors
1
24
• Presence in 11 regions of Central Russia, with strong g...
25
Thank you for your attention!
ir@mrsk-1.ru
IDGC of Center
4, 2nd Yamskaya str., Moscow, Russia 127018
T: +7 495 747 929...
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Troika Dialog Russia Forum 2012

  1. 1. IR PRESENTATION Preliminary Results Y2011 The Russia Forum 2012 (Troika Dialog) January 31 – February 03, 2012
  2. 2. Disclaimer 2 The information in this presentation was received from the sources, which in opinion of IDGC of Centre (“the Company”) are reliable. Nevertheless, we do not guarantee the accuracy of the given information, which may be short or incomplete. All opinions and estimations contained in the present material reflect our opinion at the date of publication, and are subject to the change without any notice. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities representing shares in the Company, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with any contract or investment decision. The information in this presentation includes forward-looking statements. These forward-looking statements include all matters that are not historical facts, statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties to be set forth in the prospectus, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods The Company does not bear the responsibility for consequences of use of opinions containing in the present report or applications, or for incompleteness of the information. No person is under any obligation to update or keep current the information contained herein. By attending the presentation you agree to be bound by the foregoing limitations.
  3. 3. Key strategic priorities of the Company 3 I.
  4. 4. 205 121 85 79 77 57 52 38 23 18 МОЭСК МРСК Центра МРСК ЦП ЛенЭнерго МРСК Волги МРСК Урала МРСК Сибири* МРСК Юга* МРСК СЗ* МРСК СK* 13,1 5,6 3,2 2,3 2,1 1,7 1,3 1,2 1,0 0,0 МОЭСК МРСК Центра МРСК ЦП МРСК Урала МРСК Волги МРСК СK МРСК СЗ ЛенЭнерго МРСК Сибири МРСК Юга 91 50 47 40 39 35 27 23 17 8 МОЭСК МРСК Центра МРСК ЦП МРСК Урала МРСК Сибири МРСК Волги ЛенЭнерго МРСК СЗ МРСК Юга МРСК СK 79 25 17 17 16 11 11 7 3 2 МОЭСК МРСК Центра МРСК Урала МРСК ЦП МРСК Волги Ленэнерго МРСК Сибири МРСК СЗ МРСК Юга МРСК СK4 Industry restructuring 2003-2007 Current Tariff Structure 63% 34% 3% Sales Transmission & Distribution Power Generation 100% 17% 7% Losses 4% TGCs 6% 34% RАО UES of Russia Infrastructure System Operator Federal Grid Company Transmission network 220 kV and above) Holding IDGC (11 IDGCs –distribution network 110 kV and below, 7 sales, 5 DGCs, others) Market Board Heat UGC TGC Others Hydro UGC Power Generation Industry Structure Benchmark among IDGCs (9m2011) Sales Other power generating companies MCap (12.2011), RUR billion Revenue, RUR billion Net profit, RUR billion RAB, RUR billion #2 #2 #2 #2 МРСК Центра МРСК Центра МРСК ЦП МРСК СЗ МРСК СK МРСК ЦП МРСК СЗ МРСК СK МРСК СЗ МРСК СK МРСК ЦП МРСК Центра МРСК Центра МРСК ЦП МРСК СЗ МРСК СK HOLDING IDGC MOESK IDGC of Centre IDGC of Centre and Volga Lenergo IDGC of Urals IDGC of Siberia IDGC of Volga IDGC of North-West IDGC of South IDGC of NC MOESK IDGC of NC IDGC of Centre IDGC of Centre and Volga IDGC of Urals IDGC of Siberia IDGC of Volga Lenergo IDGC of North-West IDGC of South MOESK IDGC of Centre Lenergo IDGC of Urals IDGC of Centre and Volga IDGC of NC IDGC of Volga IDGC of North-West IDGC of Siberia IDGC of South MOESK IDGC of Centre IDGC of Centre and Volga Lenergo IDGC of Volga IDGC of Urals* IDGC of Siberia* IDGC of NC* IDGC of South* IDGC of North-West* 4 the structure is provided according to the results of 2011 tariff campaign * indicative
  5. 5. IDGC of Center 1 Belgorodenergo 2 Bryanskenergo 3 Voronezhenergo 4 Kostromaenergo 5 Kurskenergo 6 Lipetskenergo 7 Orelenergo 8 Smolenskenergo 9 Tambovenergo 10 Tverenergo 11 Yarenergo Introduction 10 11 4 8 2 5 7 1 3 6 9 The Company controls 83,6% of power transmission market – tariffs are regulated by the State IDGC of Centre Smolensk Bryansk Belgorod Voronezh Tambov Lipetsk Kursk Kostroma YaroslavlTver Orel MCap, RUR billion as at January 27, 2012 27,4 Revenue (IFRS) RUR billion 68,1 Length of lines, km thousand* 374,7 Substation capacity, MWA 35-110 kV 31 506 6-10/0.4 kV 15 353 Staff number 31 036 Number of shareholders** 16 775 2011 *- overhead power lines 0.4-110 kV ** - as at 12.05.2011 – the date of registry closed 5 Service area– 458 000 km2 15% of the Russian population
  6. 6. Board of directors approved the Regulations on the dividend policy based on a system executing a set of criteria The first stage of Smart Grid program is completed in Belgorod The company acquired 100% of Yargorelectroset , the share of IDGC of Centre in regional grid assets increased to 90% 5 years RAB tariff system had been adopted in Orelenergo and Bryanskenergo iRAB amounts USD 3.9 billion (RUR 118 bln) Successful implementation of the business plan and the investment program for 2010, the actual volume of CAPEX amounted to 103% of the plan –USD 401 million (RUR 12 billion) 12.2004 – 2009 The Company fulfilled its obligations for dividend payments of USD 20.1 million (RUR 611 million) (the pay-out ratio – 12.6%); Company stocks moved across to MICEX quotation list A2; 1H2011 IFRS financials have been reported , demonstrating growth of the key financial indicators Company developed and approved the Program of innovative development for 2011-2016 Board of directors approved Business Plan and Investment Program for 2012 5 years RAB tariff system adopted in Kostromaenergo, Tambovenergo, Voronezhenergo, Smolenskenergo and Yargorelectroset Story line 2010-2011 December‟04 As part of RAO UES reforming IDGC of Centre and North Caucasus had been registered for RGC integration 6 April „07 The final structure of the Company had been accepted, including 11 regional grid companies of central Russia (the decision of The board of directors of RAO UES) March „08 Affiliation of RGCs May „08 Listing on MICEX and RTS 09.2010 11.2010 12.2010 01.2011 06-08.2011 12.2011
  7. 7. Strategic goals of the Company (1) Improvement of quality and reliability of customer services • implementation of production program; • implementation of repair program. The planned amount of repair program for 2012 is RUR 1,5 bn, 6% up than expected fact of 2011; • implementation of Investment program. The investment program for 2012 includes capital expenditures of RUR 14,3 bn, expecting reduction of CapEx by (-5,5%) in compare with expected fact for 2011 Improving the efficiency of operating and investment activities • implementation of selected economically attractive investment projects, approved within the investment program for 2012; • reduction of management costs Improving the investment attractiveness • extension of long-term regulation period in order to save the parameters and to reduce the tariff pressure on consumers; • implementation of measures for share liquidity improvement; • possible privatization 2013-2014 1 2 3 7
  8. 8. Strategic goals of the Company (2) Improving the energy efficiency and providing the innovative development • full implementation of asset management methodology, integration of asset management system with geo-informational system, that will allow to manage the technical risks (risks of failure of process equipment) Improving the availability of power grid infrastructure • integration of power grid assets of TGC and consolidation of power grids Development of human capital • implementation of knowledge and competence of key functional specialists and staff reserve assessment system; • development of personnel motivation system 5 4 6 8
  9. 9. IDGC Holding Minor shareholdres 50.23% 49.77%* Company structure and key shareholders Russian Federation 53.69% IDGC of Center, JSC YarESK, JSC Energetik, JSC 51% 11 operating business units Subsidiaries – 100% Group of companies Yargorelectroset, JSC Yargoreletroset, JSC is the largest Territory Grid Organization in the Central Federal Region. The result of acquisition of the 100% stake is that IDGC of Center now controls more than 90% of power grid assets in the Yaroslavl region Energyservice company, JSC The main activities are providing saving energy services , energy efficiency Free float 30% Share capital structure, % 9 CIEET, Closed JSC Centre of innovations and energy efficient technologies 100% * - including the State share 0.46% 50,23 15,90% 8,40% 3,20% 2,73% 1,45% 18,09% IDGC Holding, JSC GENHOLD LIMITED THE BANK OF NEW YORK MELLON IMMENSO ENTERPRISES LIMITED Energosoyuz Holdings Limited RUSENERGO FUND LIMITED Others
  10. 10. 5 Committees: Share capital structure and corporate governance 10 General Meeting of Shareholders Board of Directors Audit Commission Auditor Internal Control and Audit Department Chairman of the Management Board– General Director Management board Supreme governing body: Strategic governing body: Internal control for financial activities of the Company External control for financial activities of the Company Committee on Strategy Committee on Audit Committee on personnel Committee on reliability Committee on TC* * - technological connection History of IDGC of Center corporate rating on the national scale NRCG Confirmed August’ 11 Upgraded (7+) March ‟ 11 Confirmed July’ 09 Confirmed February’ 09 Assigned September’ 08 Developed corporate governance practice, leading position among IDGCs
  11. 11. Revenue forecast for 2012 is RUR 1,8 bn* 29% 25%15% 13% 8% 7% 3% СМР в рамках концессионных соглашений СМР по прямым договорам с МРСК Центра Услуги прочим заказчикам Ремонтная деятельность Расширение просек Проведение энергетического обследования Услуги контактного центра Development of energy saving technologies - Energyservice Company, JSC 11 Russian Government Program “Energy saving and improving the energy efficiency till 2020” 1  Participation in investment and repair programs of IDGC of Centre (development, reconstruction, repair of energy equipment, строительство, clearing and expansion of firebreaks)  Organizing and conducting energy audits, developing action plans on losses reduction of energy sources for customers;  Financial engineering and implementation of turnkey energy saving projects  Implementation of concession agreements in the area of power grid construction and development of street light lines;  Providing services on sales companies market (energy saving contracts, energy meters market) 2 3 4 5 * - 100% subsidiary of IDGC of Centre ** - BP for 2012 The key activities The structure of forecast revenue** * CIW within the concession agreements CIW within the straight contracts with IDGC of Centre Services for the other customers Repair activities Expansion of firebreaks Conducting the energy research Services of contact center
  12. 12. Financial and operating indicators: preliminary results 2011 (RAS) 12 II.
  13. 13. Key RAS figures 2009-2011FF 13 EBITDA RUR bn Net Profit, RUR bn EBITDA margin % Net Profit margin % Productive supply (inc. TGCs) kWh bn 49,1 60,4 68,1 Indicators 2009 2010 2011FF* Revenue growth, inc.: 12,6% 23,1% 12,8% Growth of revenue from power distribution 16,7% 22,8% 14,1% Growth of revenue from technological connection (40,8%) 32,7% (23,3%) EBITDA growth 13,0% 43,6% 23,7% Net profit growth 44,4% 255,2% 9,7% ROE 3,14 11,12 11,25 46,9 57,6 65,7 2009 2010 2011ПФ Revenue RUR bn от технологического присоединения прочие услуги от передачи э/э 7,6 11,0 13,6 15,6% 18,1% 19,9% 2009 2010 2011ПФ 1,3 4,7 5,2 2,7% 7,8% 7,6% 2009 2010 2011ПФ 51,5 53,4 54,1 2009 2010 2011ПФ * - Forecast Fact from technological connection other services from power distribution
  14. 14. Dynamics of costs structure 14 * - Forecast Fact Type of cost, RUR bn 2009 2010 2011FF* %2011/2010 Purchased energy for losses compensation 6,8 9,2 8,7 -5,6% FGC UES, JSC services 7,8 11,0 12,8 16,5% DGCs services 8,0 9,4 11,2 18,7% Services of contractors for maintenance and repair of equipment 0,6 0,5 0,5 -7,6% Labor costs 6,0 7,5 8,0 6,8% Insurance fee 1,4 1,9 2,6 40,5% Raw and materials 1,4 1,7 2,0 20,7% Amortization of fixed assets and NMA 4,0 4,3 5,2 20,5% Leasing 1,8 1,3 0,9 -31,5% Rent fee 0,3 0,4 0,5 32,4% Others 6,3 5,3 4,8 -11,1% Total 44,4 52,6 57,2 8,9% 14,1 14,7 14,9 30,4 37,8 42,3 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 2009 факт 2010 факт 2011 ПФ Неподконтрольные затраты Подконтрорльные затраты 24,5% 11,8% 4,8% 1,3% RUR bn Dynamics of costs structure 2009-2011FF*: Uncontrollable costs Controllable costs fact fact FF
  15. 15. Loan portfolio dynamics & credit rating Recommended ratio Net Debt/EBITDA = 3 Net debt/EBITDA, RUR billion Structure of loan portfolio %, 2011 History of IDGC of Centre credit rating Standard&Poor‟s Confirmed February‟11 Confirmed July ’10 Assigned November‘09 NRА* Confirmed (outlook “Positive”) December „11 Upgraded (level AA-) December ‘10 Confirmed October ’10 Upgraded (level A+) September ’08 Upgraded (level А) August ‘07 * National Rating Agency Credit rating history 15 6,8 7,6 11,0 13,6 9,3 10,8 14,7 18,7 1,4 1,4 1,3 1,4 0,0 0,5 1,0 1,5 2,0 0 5 10 15 20 25 30 35 40 2008 2009 2010 2011ПФ EBITDA Чистый долг Net Debt/EBITDANet debt 49% 18% 18% 12% 3% Сбербанк ВТБ Росбанк Альфа-Банк Газпромбанк Sberbank VTB Rosbank Alfa-Bank Gazprombank Avg. rate 8,35%
  16. 16. 16 Year Commissioning, RUR billion Commissioning power on fixed assets km MVA 2009 7,7 2414 877 2010 10,0 4155 1050 2011* 13,9 4374 1385 2012F 14,4 4010 811 - Others 14.35 RUR billion Expected CAPEX for 2011-2015 amounts to RUR 102 billion* Main uses of CAPEX in 2012 Sources of finance in 2012 - Replacement of the main power equipment - New construction(substations, overhead и cable lines) - Developing/Modernization of accounting systems - ASMD systems, connection, IT - Modernization and reconstruction * Forecast Fact 60% 36% 2% 2% Тарифные источники Заемные средства Прочие собственные средства Плата за ТП Tariff sources Borrowed sources Other own sources Payments for technological connection 39,0% 35,9% 6,3% 6,1% 3,0 % 0,4% 9,2% 5,6 5,16 0,91 0,88 0,43 0,05 1,32 14,35 100% - Purchase of fixed assets 0,43
  17. 17. Tariffs 2012 – main schedule points Government approved the Decree 1178 of 29 December, 2011 "On the pricing of regulated tariffs in the Electric Power Industry The approval of regional regulators of common rates of tariffs for the period from 01 January 2012 till 30 June 2012, at the level ≤ 2011 (subject to execution of the Decree 1172) - is satisfied. Adoption of regional regulators solutions as follows: - Establishing (or revising) of a long-term options for RAB- regulation from 01 July 2012 and aligning them with the FTS of Russia; - Establishing of tariffs for electricity transmission for 2H2012, provided not exceeding the 11% average growth rate compared with approved tariff level from 01 January 2012 Before 1 April 2012 Approval of the new tariff decisions 1 July 2012  IPR to 2018  Approval of FTS of Russia of long-term RAB regulation strandards Method of long-term indexing In the case of absence before 1 January 2012 17
  18. 18. Key points of 1178 Decree 18 Must be approved by the FTS of Russia (RECs’ can not make changes) Criteria for LPR regulation «Leverage»: Value of debt at the end of each year of the period must be >=25% of the invested capital; Correspondence of growth of the average tariff rate with Ministry of Economical Development (MED) forecast (no increase in 2013 above 10%) Based on the actual commissioning of the actual inputs on CAPEX since 01.07.2014 – taking into account actual load Invested capital basis from 1% to 3% (3% - in the case of growth (OPEX/CU* i-1 : OPEX/CUi > 2*CPI forecast 1-st year of RAB regulation ( i – period of transition) Efficiency index Territorial grids: for new IC** - approved by FTS in agreement with MED; for old IC – approved by regional regulatory agencies (1=< return on old capital<=return on new capital) Rates of return For 1st period of LPR – in accordance with MED standard, further taking into account temps of decrease in accordance with an energy saving program***) Amount of losses Require changes in the guidelines for tariff regulation on RAB basis № 231 of 26 June, 2008 and approval of the FTS in agreement with MED on rates of return on new capital * conventional unit ** invested capital *** 10% penalty is applied in the case of absence of the program long-term period of regulation (LPR)
  19. 19. M&A projects - grid assets integration and key steps for investment attractiveness improvement 19 III.
  20. 20. • Providing monopoly on power grid services market in the regions of presence with more than 97% share; • Long-term target program for the consolidation of power grid assets have been developed and approved (power grid assets consolidation plan for 2011 - 2015) Integration key steps Plans for 2011-2015 Methods and advantages of consolidation Target/ Program • Company consolidates the assets primarily in 3 ways: acquisition of power grid, long term property rent, purchase of shares of power grid companies; • The basic advantages of consolidation are as follows: implementation of a unified technical policy, the development of a unified scheme of long-term development of power grids, improving the reliability of electricity supply to consumers of all categories, increasing of power grid capacity • It is planned in 2011 to consolidate municipal power grid assets in some regions were Company operates; • Program provides working with more than 5 thousand owners 20
  21. 21. M&A projects - grid assets integration TGCs in IDGC of Centre service area 9 14 18 23 25 26 39 53 62 70 102 0 20 40 60 80 100 120 Tambov Kursk Kostroma Orel Tver Lipetsk Belgorod Bryansk Smolensk Yaroslavl Voronezh Amount of other TGCs = 441 • The other TGCs‟ average share in revenue in IDGC of Centre service areas – 20%; • Required Gross Revenue (RGR) of the Company due to the assets consolidation in regions may increase to RUR 10 billion by 2015, RGR share may grow by 97%; • One of the key goals of the Company is the integration of power grid assets that will allow: • increasing the reliability level of power supply • enlarging the power distribution sales market • improving the quality of customer service • balancing the tariff on power distribution 21 Share of the Company in the power transmission market, 2007-2015F 2007 2008 2009 2010 2015F Market share in terms of money 83% 83.6% 83.8% 84% 97%
  22. 22. 08.2010 Confirmation of presence in RTS EU and RTS-2 - forecast 22 Stock performance and liquidity increase Company ‘s shares were listed on MICEX (quotation list B), RTS Company’s shares were included in the index: MICEX PWR Company’s shares were included in RTS EU* Dividends payment USD 20.05 million (RUR 610 million), pay-out-ratio 13% * - RTS energy utilities Dividends for 2010: Total (RUR million) 610,9 Net profit share 13% Dividend yield 1,33% Company‟s priorities for 2012: • Stable dividend policy • Quotation list update (MICEX A1) • Depositary receipts launching • Inclusion in international indexes • Launching of option program 04.0905.2008 3Q112Q1109.10 4Q11 1Q12 Quotation list update (MICEX A2 ) Quotation list update (MICEX-RTS A1 )
  23. 23. -90% -80% -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% Август2008 Октябрь2008 Декабрь2008 Февраль2009 Апрель2009 Июнь2009 Август2009 Октябрь2009 Декабрь2009 Февраль2010 Апрель2010 Июнь2010 Август2010 Октябрь2010 Декабрь2010 Февраль2011 Апрель2011 Июнь2011 Август2011 Октябрь2011 Декабрь2011 МРСК Центра Индекс ММВБ Индекс ММВБ-Энергетика Информация о намерениях Правительства о переходе на RAB -регулирование 23 Stock market indicators* 2011 MRKC Russian peers Int. peers P/E 4,9 5,3 6,9 EV/ EBITDA 3,3 2,9 4,7 EV/S 0,7 0,5 1,0 EV/RAB 0,37 0,37 1,28 * Data calculation – forecast 2011 Beginning of trading: May 21, 2008 Quotation list: «А2» MICEX Shares of IDGC of Centre are part of the calculation base in indices: - MICEX PWR Feb 17. Head of Russian Government announced the need to curb the growth rate of tariffs on power Company reports the good financials for 2009 and plans on all the branches to adopt RAB after Jul 01, 2010 Remaining branches to adopt RAB (Nov’10, Jan’ 11) Shares of the Company have been included into MICEX A2 quotation list Company reports good IFRS financials on 1H2011 October2009 April2010 November2008 September2011 October2011 November2011 December20111 August2008 October2008 December2008 February2009 April2009 June2009 August2009 December2009 February2010 June2010 August2010 October2010 December2010 February2011 June2011 August2011 April2011 September2008 January2009 March2009 May2009 July2009 November2009 January2010 March2010 May2010 July2010 November2010 January2011 March2011 May2011 July2011 IDGC of Centre MICEX MICEX Power Company‟s shares and sector indexes dynamics
  24. 24. Attractive object for investment External favorable factors 1 24 • Presence in 11 regions of Central Russia, with strong growth prospects; • Second largest company of 11 interregional distribution grid companies in terms of capitalization, revenue, net income, the value of RAB; • Significant underestimation as compared with foreign peers (in multiples P / E, EV / EBITDA, EV / S, EV / RAB); • Growth of electricity consumption in the whole of Russia for the period 2009- 2020, CAGR - 2,8% * 2 Internal favorable factors • Leading position in innovation in the distribution sector (smart grid, smart metering); • Highest level among the analogs of corporate governance (National grade 7 +); • The leader of the transition to RAB-regulation; • Growing financial and economic indicators for the period 2009-2011 (sales CAGR - 20%, EBITDA CAGR - 33% net profit CAGR - 97%); • Low debt level, credit rating S &P; • Strong management team *Source: Agency for Energy Forecasting
  25. 25. 25 Thank you for your attention! ir@mrsk-1.ru IDGC of Center 4, 2nd Yamskaya str., Moscow, Russia 127018 T: +7 495 747 9292 F: +7 495 747 9292 www.mrsk-1.ru Tickers: MICEX: MRKC Bloomberg: MRKC RX Reuters: MRKC.MM www.mrsk-1.ru/ru/investors/ Follow us: IR specialists will provide you with any additional information upon your request: Head of IR - Miroshnichenko Tatiana

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