MRSK Tsentra : IDGC of Centre conducted the "Analysts’ Day" for representatives of the investment community, dedicated to the results of the company’s activities for 2016 and forecasts for 2017

IDGC of Centre's management held a meeting with analysts of banks and investment companies, dedicated to the results of work in 2016 and forecasts for 2017. At the event IDGC of Centre was represented by Deputy General Director for Corporate Governance Sergey Sharapov, Advisor to General Director Sergey Rumyantsev and Director for Corporate Governance Olga Kharchenko.

At the meeting with representatives of the investment community, IDGC of Centre's representatives told the guests about the company's production and financial results for 2016. The main issue of the meeting was recently published IFRS statements. Consolidated revenues for the period amounted to 86.3 bln RUB, including from electric energy transmission - 83.6 bln RUB, from grid connection - 1.4 bln RUB and other revenue - 1.3 bln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 17.9 bln RUB. Profit for the period increased 5 times and amounted to 4.8 bln RUB.

One of the main factors that, according to the management, had a significant impact on the financial result for 2016, was the growth of productive supply by 2.6% to 56.2 billion kWh. At the same time, the market share in the electricity transmission for the required gross revenue in the regions of the service area was 86.1% in 2016, and the market share of grid connections reached 88.7%. Due to the successful implementation of the Program for reduction of electricity losses in 2016, losses under comparable conditions decreased by 0.07 p.p. to 9.36%. The year-on-year growth in production capacity allowed to strengthen the safety and reliability reserve of the grid. At the same time, the specific failure rate of equipment decreased by 16.2%. An important result in 2016 was the company's contribution to reducing the time for customers to access the infrastructure. By the end of the year, the average term for the execution of grid connection agreements was reduced almost twofold - to 78 days.

Participants of the meeting thoroughly acquainted with the approved Investment Program for 2016-2020 and the outcome of its implementation following the results of the year ended. The management presented its vision of the tariff policy for the near future and shared current data from the Business Plan for 2017, formed in accordance with RAS standards. According to the calculations of the company's specialists, the planned revenue of IDGC of Centre for electricity transmission services is projected at 84.5 bln RUB. The EBITDA is planned at 17.4 bln RUB. At the end of the meeting, Sergey Rumyantsev noted that building a constructive dialogue with representatives of the investment community is the key to a fair evaluation of the company's activities and an incentive for further improvement of its work.

The presentation of IDGC of Centre on the results of 2016 can be found at: http://www.mrsk-1.ru/investors/presentations/