9 April 2015

Management of IDGC of Centre held a meeting with analysts, banks and investment companies on the results of work in 2014 and forecast for 2015. On the part of IDGC of Centre the event was attended by Deputy General Director for Economy and Finance Sergey Rumyantsev, Chief Accountant Lyudmila Sklyarova, Deputy General Director for Investment Dmitry Sklyarov, Acting Deputy General Director for Corporate Governance Olga Kharchenko and Head of Economy Department Natalia Loganova.

During the meeting with representatives of the investment funds the management of IDGC of Centre commented on operational and financial results of the company for 2014. IDGC of Centre operated in 2014 with the following results according to IFRS: consolidated revenues for the period amounted to 87,0 bln RUB, earnings before interest, taxes, depreciation and amortization (EBITDA1) amounted to 7,8 bln RUB, adjusted EBITDA2 reached 16,7 bln RUB. Adjusted profit for the period3 was 4,0 bln RUB.

The electricity transmission market share in terms of revenue in the regions of the service area amounted to 83,9% at the end of 2014, the grid connection market share reached 87,9% (at the end of 2013 it was 84,3% and 87,7%, respectively). Following the results of operations in 2014 the volume of electric energy transmission services (joint operation productive supply without losses of TGCs) amounted to 54,4 billion kWh. Electricity losses (in comparable terms) for 2014 decreased to 9,17% (9,26% in 2013). Capital investment of IDGC of Centre was 12,2 bln RUB (excluding VAT), of which 47% were spent on grid connections.

The company steadily performs its main task - to provide reliable and quality power supply to consumers. As a result of professional and well-coordinated work of all employees of the company the internal quality control and reliability of power supply to consumers continuously improves, such as the System Average Interruption Duration Index (SAIDI) and the System Average Interruption Frequency Index (SAIFI).

The company's predicted performance for 2015-2016 and for a medium term aroused great interest of analysts. As estimated by the company's specialists, the planned revenue of IDGC of Centre for electric energy transmission services under the adjusted Business Plan for 2015 is projected at 0.8% above the fact in 2014, due to growth in the average tariff for electric energy transmission. A projected increase in revenue from grid connections relative to the previously approved forecast is associated with the inclusion of a number of major contracts in the adjusted Business Plan for 2015, and an increase in the number of scheduled connections of customers due to an increase in funding for grid connections as provided for by the approved Investment Program.

The adjusted Business Plan for 2015 reflects the outlook of the company during the current economic situation. In this case, the company's management will make every possible effort to improve the predicted result.

The company's presentation following the results of 2014 can be found at: http://www.mrsk-1.ru/investors/presentations/

[1] EBITDA is calculated as follows: profit for period + profit tax + financial costs - financial income + depreciation charges

[2] Adjusted EBITDA is calculated as EBITDA except for the provisions for impairment of accounts receivable and impairment of fixed assets

[3] Adjusted profit for the period is calculated as Profit for the period except for the provisions for impairment of accounts receivable, impairment of fixed assets and related deferred profit tax charges

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