Inter RAO international activities

January 2014

2

Inter RAO Group

Группа «ИНТЕР РАО»

* As of 2012

GENERATION

SALES

TRADING

INTERNATIONAL ASSETS ENGINEERING

The largest energy holding in Russia focused on electricity and heat generation and sales, electricity export and import, and engineering services

57,000 people 556.2 billion RUB

total staff

46 TPPs (including 8

mini TPPs), 13 HPPs (including 8 mini HPPs), 2 wind farms

33.5 GW of installed capacity

149 TWh generated*

9 electricity retailers

15% share of the

Russian retail market

153 TWh sold*

We are the leading

Russian electricity exporter with 97% market share.

18.4 TWh exported*

2.6 TWh imported*

20 new generation and

rehabilitation projects

6.3 GW of new capacity in the pipeline

Consolidated value of

current projects:

207.7 billion RUB

Operating in

more than 15 countries

6 GW of installed capacity

34 thousand km of

power lines

2012 revenue (IFRS)

3

On Track to Deliver Strategy

STRATEGIC PRIORITIES

• Organic growth through construction of new electricity generation capacity in Russia and M&A

• Selective expansion into target foreign markets through M&A, developing greenfield

• Raising efficiency of existing assets, getting new cash flow from Capacity Delivery Agreements (CDA)

• Extending Geography & product line

• Increasing market share with independent suppliers

45 TWH 25%

TRADING VOLUME

SUPPLY MARKET SHARE IN RUSSIA

€2.8 BN CONSOLIDATED EBITDA 25% INSTALLED CAPACITY ABROAD

TOTAL INSTALLED CAPACITY 40 GW

€23 BN CONSOLIDATED REVENUE

250 TWH

ELECTRICITY SUPPLIED

Key Targets 2015E

4

Engineering Assets of Inter RAO Group

100% subsidiary

100% 25% LLC Inter RAO Export

LLC Russian Gas Turbines

Manufactures 6FA gas turbines in Russia • Joint venture of JSC Inter RAO, General Electric and Rostec

• Established in 2011

• Designed to manufacture 14 gas turbines per year, with potential upgrades up to 20 gas turbines per year

• Manufacturing site: Rybinsk, Yaroslavl Oblast

• The manufacturing plant will be completed in Q2 2014 and production of first turbin is planed for Q3 2014

LLC Inter RAO — Engineering

A leading engineering service provider focused on construction and rehabilitation of energy facilities in Russia and worldwide

• 8 successful new construction and rehabilitation projects with 2.3 GW of combined capacity • Current portfolio includes 4 GW of generation capacity spread across 12 projects • A team of 500 highly skilled professionals

Sales of energy equipment and services in the international markets • 8 active contracts for delivery of energy equipment, spare parts

and services for heat and hydro power projects

• Large network of representative offices abroad

• Key markets: Latin America, Africa, Middle East & Southeast Asia

5

BOT/BOO project organization

Sales of core and auxiliary

equipment

Decommissioning of legacy equipment

Start-up and adjustment of new

facilities

Integrated offer based on 6FA gas

turbines

Owner's Engineering

Design of energy facilities

EPC/EPCM project management

Our Services

6

12

3

6 7

18

14 13

11

5 10

2

1

9

15

8 4

16

17 19

9

Project Geography

8 completed projects with

combined capacity of 2.3 GW

12 projects in progress with combined

capacity of 4 GW

1. Sochinskaya TPP, 80 MW, 2009

2. Kaliningradskaya TPP-2, 450 MW, 2011

3. Urengoyskaya TPP, 491 MW, 2012

4. Kharanorskaya TPP, 225 MW, 2012

5. Ivanovskiye CPP, 325 MW, 2012

6. Tomskaya TPP-1, 15 MW, 2012

7. Omskaya TPP-3, 85 MW, 2013

8. Gusinoozyorskaya TPP, 210 MW, 2013

9. Dzhubginskaya TPP, 180 MW, 2013

10. Cherepetskaya TPP, 450 MW, 2013-2014

11. Yuzhnouralskaya TPP-2, 850 MW, 2013-2014

12. Nizhnevartovskaya TPP, 400 MW, 2014

13. Verkhnetagilskaya TPP, 420 MW, 2015

14. Permskaya TPP, 800 MW, 2015

Tajikistan 15. Sangtuda HPP-1, 670 MW, 2009

Venezuela 16. Delivery of gas turbines with combined rating of 423.8 MW for BARIVEN S.A., 2015

Ecuador 17. Toachi Pilaton Hydro Project, 252 MW, 2015

Kazakhstan 18. Ekibastuzskaya TPP-2, 636 MW, 2015

Ecuador 19. Termogas Machala TPP, 170 MW, 2016

Projects in Progress

Completed Projects

International projects

Russian projects

8

7

Actual project geography

Russian Federation

Morocco

Uganda

Pakistan

Vietnam Yemen

Iraq Lebanon

Jordan

Serbia

8

Electricity export to Japan

General information

Benefit to the regional integration

The part of Asia super grid

New start-up of the old project

1

Location

New generation and power transmission

Power generation units construction plan:

Total capacity – up to 3 GW

Three stages realization

First stage: coal-fired power plant, 1050 MW

Second stage: coal-fired power plant, 1050 MW

Third stage: gas-fired power plant, 800 MW

Power transmission plan:

Different combinations of HVDC cable routing possible

(submarine, underground, areal)

Connection points:

RF: cape Krilyon, t. Korsakov, t. Uglegorsk

Japan: cape Soya, t. Niigata, t. Wakkanai

2

3

1 2

3

Uglegors

cape Soya

Korsarov

Poronaysk

Wakkanai

cape Krilyon

Niigata

isl. Hokkaido

isl. Sakhalin

isl. Honshu

THANK YOU

FOR YOUR ATTENTION!

10

Asset Management Structure

– Omskaya CHPP-5 (695 MW)

– Omskaya CHPP-3 (387 MW)

– Omskaya CHPP-4 (435 MW)

– Tomskaya TPS-2 (331 MW)

– Tomskaya CHPP-3 (140 MW)

– Tomskaya CHPP-1 (15 MW)

GENERATION (27,622 MW)

INTER RAO Electro-

Generation (21,792 MW)

– Kostromskaya TPS -3,600 MW

– Iriklinskaya TPS - 2,430 MW

– Permskaya TPS – 2,400 MW – Kashirskaya TPS - 1,910 MW

– Nizhnevartovskaya TPS – 1,600 MW

– Verkhnetagilskaya TPS – 1,497 MW

– Cherepetskaya TPS – 1,285 MW

– Gusinoozerskaya TPS – 1,130 MW

– Pechorskaya TPS – 1,060 MW

– Severo-Zapadnaya CHPP - 900 MW

– Yuzhnouralskaya TPS - 882 MW

– Kaliningradskaya CHPP-2 - 875 MW

– Kharanorskaya TPS - 655 MW – Urengoyskaya TPS - 484 MW

– Ivanovskie CCGT - 325 MW

– Sochinskaya TPS - 158 MW

– Djubginskaya CHPP – 201 MW

LLC “MC INTER RAO –

ElectroGeneration”

TGK-11 (2,003 MW(2))

Bashkir GenCo (4,227 MW)

100%

100%

100%

100%

SUPPLY

Guaranteed Suppliers:

– JSC Mosenergosbyt (50,92%)

– St. Petersburg Supply Group of

companies (100%)

– JSC Saratovenergo (56,97%)

– JSC Altayenergosbyt (100%)

– JSC Tambov Energy Retail

Company (59,38%)

– JSC IRAO – Orelenergosbyt

(100%)

– Tomsk Energy Retail Company

(43,18%)

– Omsk Energy Retail Company⁽²⁾

(100%)

Non-Guaranteed Suppliers:

– LLC Rn-Energo (100%)

– JSC Industrial Energetics (51%)

– LLC RT-Energotrading (50%)

FOREIGN ASSETS (5,965 MW)

Moldova, Transdniestria

Republic:

‒ CJSC Moldavskaya

GRES (100%) – 2,520

MW

Georgia:

– Mtkvari Energy LLC

(100%) – 600 MW

– JSC Khramesi GES I

(100%) – 112.8 MW

– JSC Khramesi GES II

(100%) – 114.4 MW

– JSC Telasi (75%)

Armenia:

– JSC RazTES (100%) –

1,110 MW

– CJSC Elektricheskiye

seti Armenii (100%)

Kazakhstan:

– Ekibastuzskaya GRES-2

(50%) – 1,000 MW

Lithuania:

– Vydmantai (51%) – 30

MW

Turkey:

– Trakiya (100%) – 478

MW

TRADING

– RAO NORDIC OY (Finland)

(100%)

– AB INTER RAO Lietuva

(Lithuania ) 51%

– SIA INTER RAO Latvia

(Latvia) (51%)

– INTER RAO Eesti OU

(Estonia) (51%)

– INTER RAO Green

Renewables and Trading

AB (75%)

– LLP Kazenergoresurs

(Kazakhstan) (100%)

– JSC Eastern Energy

Company (100%)

– IRL Polska (Poland) (51%)

ENGINEERING

– INTER RAO Engineering

(100%)

– Quartz New technology

(100%)

– Quartz Group (100%)

– INTER RAO Worley

Parsons (51%)

– INTER RAO

Interenergoeffect (50%)

– INTER RAO Power

Efficiency Center

– JW with Rostec (25%),

GE (50%) & INTER RAO

(25%) (RUS Gas

Turbines Holding)

– INTER RAO Export

(100%)

– Fund Energy without

Borders (100%)

– Engineering Center Gas-

Turbine Technologies

(45.27%)

– Karmanovskaya TPS – 1,810 MW

– 10 CHPPs (including Zauralskaya

gas-piston plant) – 2,180 MW

– 5 gas-turbine units - 25 MW

– 9 HPPs (including 7 small-size

plants) - 212 MW

(1) As of February, 2014

(2) In December, 2013 Inter RAO won the competitive tender for getting the guaranteed supplier status in Omsk region

INTER RAO GROUP

11

38 35 33.6

23,4 19,5

16

10,3 9,2

0%

5%

10%

15%

20%

25%

0

10

20

30

40

GEN Rus Hydro Rosatom ESE IES Holding E.ON Russia Enel OGK-5

INTER RAO At Glance

RUB bn. 2011 2012

Revenue 536.2 556.2

EBITDA 41.7 26.5

Total Assets 531.9 528.6

Adjusted Debt 48.6 64.8

Adjusted Net Debt -33.5 10.6

Debt/EBITDA 1.2x 2.4x

Ranking Among Major Integrated Utilities

One of the largest national power generators with total installed electricity capacity of 33.6 GW(1) and electricity output of 148.7 TWh

Ranks among the largest European integrated utilities by overall installed capacity

Operates and manages 46 thermal, 13 hydro power plants and 2 wind farms

Leading Russian export-import operator, 2012 export amounting to 18.4 TWh and import 2.6 TWh

Largest Russian electricity supplier with 15% market share

Majority owned by the Russian Federation

Rated BB+ by Fitch, Ba1 by Moody’s

INTER RAO Ownership Structure

Financial Perfomance

(1) INTER RAO’s installed capacity includes Russian generation assets, Bashkir GenCo and foreign generation assets (updated on 2nd of September, 2013). (2) Market shares are based on the output (3) Excluding Unallocated & Elimination and Other (4) Includes share in debt of jointly controlled entities

Installed Capacity (GW)

Market Share (%)

(2)

(1)

(4)

(4)

Company Overview EBITDA Breakdown⁽³⁾ FY2012

Generation 50%

Trading 14%

Supply 21%

Federal Grid Company 18,57%

State 13,76%

Rosneftegaz 12,60%

VEB 5,11%

RusHydro 4,92%

Norilsk Nickel 13,21%

Treasure shares 13,93%

Minorities 17,91%

Foreign assets 15%

12

6 176

7 757

11 011

680

21 161 1 986

4 214

5 965

Electricity and Heat Production

Installed Electric Capacity

TGK-11 IRAO – Electricity Generation Bashkir Generation Foreign Generation

Total: 33 326 MW

Note: Operational results of Bashkir Generation and Trakya Elektrik are presented on LFL basis, operational results of Group’s subsidiaries are presented on an aggregate basis without excluding inter-segment transactions

48,5 50,1

4,9 4,8

11,0 10,2

8,5 7,1

0

10

20

30

40

50

60

70

80

1H2012 1H2013

Electricity Production

72.3

-0.8% TWh

72.9

Installed Heat Capacity

Heat Production

Total: 25 622 Gcal/h

Load Factor 49.9%

Load Factor 21.4%

2,6 2,5

9,0 9,2

13,2 11,8

0,1 0,1

0

5

10

15

20

25

1H2012 1H2013

23.6

-5.0% Mln. Gcal

24.9

TGK-11 IRAO – Electricity Generation Bashkir Generation Foreign Generation

TGK-11 IRAO – Electricity Generation Bashkir Generation Foreign generation TGK-11 IRAO – Electricity Generation Bashkir Generation Foreign generation

13

22%

10%

68%

Electricity Supply

Electricity Sales to Customers⁽¹⁾

TWh

Retail Electricity Sales Breakdown

Number of Customers Supply Margins of Guaranteed Suppliers⁽²⁾

(1) Includes electricity sales in retail and wholesale markets (2) Weighted average supply margin by group of customers

Legal entities, thousand accounts

Households, thousands accounts

382 400

1H2012 1H2013

+4.9% +1.6%

RUB/MWh

1H2013 1H2012

Non-guaranteed suppliers Guaranteed suppliers

77.5 76.2

-1.7%

11 199 11 378

1H2012 1H2013

Loss compensation Households and equated groups of customers Other customers

84

104 98 88

98 103 103

139

113 115 109 118

0

20

40

60

80

100

120

140

160

Mosenergosbyt Group

PSK Group

Altayenergosbyt Saratovenergo Tambov Supply Company

IRAO- Orelenergosbyt

+15.2%

64,0 64,0

13,5 12,2

0

20

40

60

80

1H2012 1H2013

Average change of supply margins

14

1,2

+1.3

2,6

0

2

4

6

8

10

12

14

1H2012 1H2013

9,7

Electricity Spot Prices in 1H2013⁽¹⁾

Electricity Export Breakdown in 1H2013 Comments

Export Import

International Activity

€/MWh

Nord Pool 2nd price zone 1st price zone Balt Pool

(x%) Percentage change yoy

2.6 TWh (+111%) 9.9 TWh (+2%)

In 1H2013 Inter RAO exported about 9.9 TWh of electricity. Finland, Lithuania,

Belarus and China accounted for over 80% of electricity exported

Electricity export to Kazakhstan reduced by 28% (yoy) due to lower fluctuations

in concurrent operation of national energy systems, and also due to marginal

slowdown of commercial sales

Electricity export to Lithuania decreased by 20% (yoy) due to electricity price

increase in the Russian Wholesale Electricity and Capacity Market

Electricity export volumes to China in 1H2013 doubled as a result of demand

growth in accordance with current long-term agreement

Aggregate import of electricity for reported period reached 2.6 TWh due to

threefold growth of electricity imports from Kazakhstan

Export/Import Volumes

Import Export

TWh

Export Import

(1) Electricity prices in EUR are based on the following average exchange rate for 1H2013: EUR/RUB = 40.76

Finland 24%

Belarus 22%

Lithuania 20%

China 19%

Kazakhstan 9%

Others 6%

Kazakhstan 86%

Georgia 10%

Others 4%

+14.3%

12.4 10.9

TWh

+5%

+9%

+11%

+15%

#% Price change yoy

23 24 24 24 24 26

18 19 19 19 18 17

42 39

45 44

37 39

44 43

46 45 43

55

10

20

30

40

50

60

January Ferbuary March April May June

+0.2

9.9