Rocket and Space Corporation Energiya , Named After S

ROCKET AND SPACE CORPORATION "ENERGIYA", NAMED AFTER S.P.KOROLEV

FINANCIAL STATEMENTS

OF THE OPEN JOINT STOCK COMPANY “ROCKET AND SPACE CORPORATION "ENERGIYA", NAMED AFTER S.P.KOROLEV

For 2012 and 2011

Korolev CONTENTS

FINANCIAL STATEMENTS FOR 2012 ...... 5-63 FINANCIAL STATEMENTS...... 5 BALANCE SHEET...... 9 PROFIT AND LOSS STATEMENT...... 16 REPORT ON CHANGES IN EQUITY...... 18 REPORT ON CASH FLOWS...... 21 NOTES TO THE BALANCE SHEET AND REPORT ON FINANCIAL RESULTS...... 24 AUDITORS' REPORT...... 61 CONCLUSION OF THE AUDIT COMMITTEE...... 64 FINANCIAL STATEMENTS FOR 2011...... 67-131 FINANCIAL STATEMENTS...... 67 BALANCE SHEET...... 70 PROFIT AND LOSS STATEMENT...... 77 REPORT ON CHANGES IN EQUITY...... 79 REPORT ON CASH FLOWS...... 82 NOTES TO THE BALANCE SHEET AND REPORT ON FINANCIAL RESULTS...... 85 APPENDIX TO THE BALANCE SHEET...... 106 AUDITORS' REPORT...... 126 CONCLUSION OF THE AUDIT COMMITTE...... 130

In accordance with paragraph 9 of the Decree of the Russian Federation Government No. 1214 "On improvement of management of public companies with shares, related to the federal property, and federal state unitary enterprises", dated 31.12.2010, financial statements shall be presented for a 2 years (current and previous) term and shall become an appendix to chapter 9 of the Annual Report of "RSC "Energiya" for 2012. FINANCIAL STATEMENTS

OF THE OPEN JOINT STOCK COMPANY “ROCKET AND SPACE CORPORATION "ENERGIYA", NAMED AFTER S.P.KOROLEV

For 2012 INN 5018033937-- dated July 02, 2010, No. 66v with amendments as of October 05, 2011, No. 124n 1050 4017 KPP 501801001 All-Russia Classifier of Management Documentation form: 0710099 Page 001 Balance sheet Correction Reporting period 34 Reporting year 2012 number: 0 (code)

Open Joint Stock Company "Rocket and Space Corporation "Energiya", named after S.P. Korolev

(name of the organization) Code of economic activity in 73.10 OKVED classifier OKPO Code 07530238 Form of ownership (OKFS) 41 Legal form (OKOPF) 12247 Unit of measure (thousand 384 roubles, million roubles – OKEI code 17 pages with appendix of documents and their copies on ___ pages The accuracy and completeness Filled by the member of the of information, specified in tax authority this document, is confirmed: Manager Information about delivery of documents Lopota This document is delivered (code) Vitali On ____ pages Aleksandrovich Composed of (mark with "V”) (First name, last name, patronymic, 0710001 0710002 completely) Signature: Date: 0710003 0710004 /signature/ 28.03.2013 Place for 0710005 0710006 signature Chief accountant Korogodina with appendix of documents and their copies on ___ pages Elena Date of delivery of the document Mikhaylovna Registered with the number (First name, last name, patronymic, completely) Signature: /signature/ (First name, last (signature) name, patronymic)

Stamp: Open Joint Stock Company "Rocket and Space Corporation "Energiya", the Russian Federation, Korolev, Moscow Oblast, OJSC "RSC Energiya".

Stamp: Interdistrict Inspectorate of the Federal Tax Service No. 2 for Moscow Oblast, March 28, 2013, Koroleva S.V.

No. 18962730 No. 18962368 INN 5018033937-- 1050 4024 KPP 501801001 Page 002 Location (address) Post code 141070 Subject of the Russian 50 Federation (code) District City Korolev Locality (village, town, etc) Street (avenue, lane, etc.) Lenina St. House (estate) number 4a Number of building (structure) Office number INN 5018033937-- All-Russia Classifier of Management Documentation form: 0710001 1050 KPP 501801001 Page 003 4031 Balance sheet Active Explanatio Name of indicator Code For the On December, On December, ns reporting 31 of the 31 of the date of the previous year year, prior reporting to the period previous year 1 2 3 4 5 6 I. NON-CURRENT ASSETS 3 2 Intangible assets 1110 9351 7408 4347 3 3 Results of research 1120 73673 180186 277562 and development Intangible research 1130 - - - assets Tangible research 1140 - - - assets 3 4 Fixed assets 1150 10096535 2840842 2537569 3 4 Profitable investments 1160 323017 170139 68795 in tangible assets 3 6 Financial investments 1170 254050 247670 248430 Deferred tax assets 1180 97988 65804 24561 3 5 Other non-current 1190 2982490 2263795 747046 assets Total in section I 1100 13837104 5775846 3908310 II. CURRENT ASSETS 3 7 Stock 1210 16324881 9983696 5125734 Value added tax on 1220 639154 441602 198122 acquired values 3 10 Accounts receivable 1230 19961370 14091612 11952830 3 6 Financial investments 1240 3422715 3773693 1736834 (excluding cash equivalents) Cash and cash 1250 2774106 1595094 3625231 equivalents Other current assets 1260 287944 356140 259363 Total in section II 1200 43410170 30241837 22898114 BALANCE 1600 57247274 36017683 26806424 INN 5018033937-- 1050 4048 KPP 501801001 Page 004 PASSIVE Explanatio Name of indicator Code For the On December, On December, ns reporting 31 of the 31 of the date of the previous year, prior to reporting year the previous period year 1 2 3 4 5 6 III. CAPITAL AND RESERVES Authorized capital 1310 1123734 1123734 1123734 (share capital, charter capital, members deposits) Own shares, 1320 - - - repurchased from the shareholders Revaluation of fixed 1340 7201934 733799 738910 assets Additional capital 1350 163859 164737 164737 (without revaluation) Reserve capital 1360 168560 168560 116008 Accumulated surplus 1370 2780170 2364303 1281129 (accumulated losses) Total in section III 1300 11438257 4555133 3424518 III. SPECIAL-PURPOSE FINANCING Share fund 1310 - - - Endowment 1320 - - - Targeted funds 1350 - - - Real estate fund and 1360 - - - fund of valuable personal property Reserve fund and other 1370 - - - trust funds Total in section III 1300 - - - IV. LONG-TERM LIABILITIES Borrowed funds 1410 1000000 1117610 1587963 Deferred tax 1420 178035 147499 123464 liabilities Estimated liabilities 1430 - - - Other liabilities 1450 - - 882673 Total in section IV 1400 1178035 1265109 2594100 INN 5018033937-- 1050 4055 KPP 501801001 Page 005 Explanati Name of indicator Code For the On On ons reporting date December, December, of the 31 of the 31 of the reporting previous year, prior period year to the previous year 1 2 3 4 5 6 V. SHORT-TERM LIABILITIES Borrowed funds 1510 299993 950000 1062000 3 14 Accounts payable 1520 41280427 27208174 19556779 3 17 Deferred revenues 1530 411939 272693 131696 3 24 Estimated liabilities 1540 307795 312255 - Other liabilities 1550 2330828 1454319 37331 Total in section V 1500 44630982 30197441 20787806 BALANCE 1700 57247274 36017683 26806424

1. Specify the number of the corresponding note to the balance sheet and profit and loss statement. 2. Deducted or negative indicator should be written parenthetically here and in other forms of reports.

3. Should be completed by non-commercial organizations. INN 5018033937-- 1050 4062 KPP 501801001 Page 006 Interpretation of separate indicators of balance sheet The page is given in case of presence of transcripts Explanati Name of indicator Code For the On December, On December, ons reporting 31 of the 31 of the date of the previous year year, prior reporting to the period previous year 1 2 3 4 5 6 Intangible assets (p. 1110), including 3 2 Patents, know-how, 1110 9338 7398 4340 copyright rights 1 - 1110 - - - 2 - 1110 - - - 3 Results of research and development (p. 1120), including: 3 3 Finished R&D 1120 73673 180188 277562 1 1120 2 Intangible research assets (p. 1130), including: - 1130 - - - 1 - 1130 - - - 2 Tangible research assets (p. 1140), including: 1140 - - - 1 1140 - - - 2 Fixed assets (p. 1150), including: 3 4 Buildings and structures 1150 2443149 1944937 1862931 1 3 4 Machines and equipment 1150 664828 480398 409533 2 3 4 Means of transportation 1150 101977 124819 132966 3 Profitable investments (p. 1160), including: 3 4 - 1160 323017 170139 68795 1 - 1160 2 Financial investments (p. 1170), including: 3 6 Stocks and shares of 1170 125306 118890 118890 subsidiary companies 1 3 6 Stocks and shares of 1170 29487 29497 30253 dependent companies 2 3 6 Stocks and shares of 1170 99257 99283 99287 other companies 3 1170 - - - 4 Deferred tax assets (p. 1180), including: - 1180 - - - 1 - 1180 - - - 2 Filled indicators (p. 1185), including: - 1185 - - - 1 - 1185 - - - 2 INN 5018033937-- 1050 4079 KPP 501801001 Page 007 Interpretation of separate indicators of balance sheet The page is given in case of presence of transcripts Explanati Name of indicator Code For the On December, On December, ons reporting 31 of the 31 of the date of the previous year year, prior reporting to the period previous year 1 2 3 4 5 6 Other non-current assets (p. 1210), including 3 5 Non-finished capital 11901 2152866 1794034 369784 investments 3 3 Non-finished R&D 11902 829033 469171 288978 - 11903 - - - Stock (p. 1210), including 3 7 Materials, raw materials 1210 698769 275591 307306 and other valuables 1 3 8 Non-finished production 1210 15469886 9559880 4810469 costs 2 - 1210 - - - 3 - 1210 - - - 4 - 1210 - - - 5 Value added tax on goods purchased (p. 1220), including: 1220 - - - 1 Accounts receivable (p. 1230), including: 3 10 Payments to suppliers 1230 1115986 263020 193288 and contractors 1 3 10 Advances, paid 1230 18113512 13378404 11200674 2 - 1230 - - - 3 - 1230 - - - 4 - 1230 - - - 5 Financial investments (excluding cash equivalents) (p. 1240), including: Loans, issued 1240 1372533 989561 844005 1 - 1240 - - - 2 - 1240 - - - 3 Cash and cash equivalents (p. 1250), including: - 1250 - 1 - 1250 - 2 Filled indicators (p. 1255), including: - 1255 - - 1 - 1255 - - - 2 Other current assets (p. 1260), including: VAT, claimed for 1260 173115 238480 170572 reimbursement under 1 agreements and contracts VAT, from received 1260 15348 17603 17650 advances 2 - 1260 - - - 3 INN 5018033937-- 1050 4086 KPP 501801001 Page 008 Interpretation of separate indicators of balance sheet The page is given in case of presence of transcripts Explanati Name of indicator Code For the On December, On December, ons reporting 31 of the 31 of the date of the previous year year, prior reporting to the period previous year 1 2 3 4 5 6 Authorized capital (share capital, charter capital, members deposits) / share fund (p. 1435), including: - 1310 - - - 1 Own shares, repurchased from the shareholders (p.1320), including: - 1320 - - - 1 Endowment (p.1320), including: - 1320 - - - 1 Revaluation of fixed assets (p. 1340), including: - 1340 - - - 1 Additional capital (without revaluation) / Targeted funds (p. 1530), including: - 1350 - - - 1 - 1350 - - - 2 Reserve capital / Real estate fund and fund of valuable personal property (p. 1360), including: Reserves, formed in 1360 168560 168560 116008 accordance with the 1 constituent documents - 1360 - - - 2 Accumulated surplus (accumulated losses) / Reserve fund and other trust funds (p. 1370), including: - 1370 - - - 1 - 1370 - - - 2 Filled indicators (p. 1375), including: - 1375 - - - 1 - 1375 - - - 2 Borrowed funds (p. 1410), including: Credits 1410 1000000 1117610 1587963 1 - 1410 - - - 2 Deferred tax liabilities (p. 1420), including: - 1420 - - - 1 Estimated liabilities (p. 1430), including: Estimated liabilities 1430 - - - for leaves 1 - 1430 - - - 2 INN 5018033937-- B226 75E6 5082 A18D D68F F795 BF7E 6A54 1050 4093 KPP 501801001 Page 009 Interpretation of separate indicators of balance sheet The page is given in case of presence of transcripts Explanati Name of indicator Code For the On December, On December, ons reporting 31 of the 31 of the date of the previous year year, prior reporting to the period previous year 1 2 3 4 5 6 Filled indicators (p. 1435), including: - 1435 - - - 1 - 1435 - - - 2 Other long-term liabilities (p.1450), including: - 1450 - - - 1 Borrowed assets (p.1510), including: Credits 1510 299993 950000 1062000 1 Accounts receivable (p. 1520), including: 3 14 suppliers and 1520 2169023 2063781 1809169 contractors 1 debt to organization 1520 317459 237959 221270 personnel 2 debt to state non- 1520 82178 45860 32917 budgetary funds 3 taxes and charges 1520 201858 238303 111233 4 3 14 advances received 1520 38431660 24601436 17170927 5 debt to participants on 1520 6065 2232 2634 dividends payment 6 - 1520 - - - 7 Prepaid income (p, 1530), including: 3 17 targeted research 1530 400860 272650 131650 funding 1 Estimated liabilities (p. 1540), including: 3 24 estimated liabilities 1540 307151 312255 - for leaves 1 - 1540 - - - 2 Filled indicators (p. 1545), including: - 1545 - - - 1 - 1545 - - - 2 Other current liabilities (p. 1550), including: equity participation in 1550 2248668 1417734 - construction 1 - - - - - INN 5018033937-- 1050 4109 KPP 501801001 Page 010 Profit and loss statement All-Russia Classifier of Management Documentation form No. 0710002 Explanatio Name of indicator Code For the reporting For the similar ns period period of the previous year 1 2 3 4 5 Revenue (2) 2110 22131127 20538538 Cost of sales 2120 20512384 18669363 Total profit (loss) 2100 1618743 1869175 Selling costs 2210 268642 90974 Management costs 2220 Profit (loss) from sales 2200 1350101 1778201 Revenue from investments in 2310 27608 85395 other companies

Interest receivable 2320 298339 126268 Interest payable 2330 392631 225925 Other types of revenue 2340 3857346 5505822 Other costs 2350 4045861 5600410 Profit (loss) before taxation 2300 1094902 1669351 Current income tax 2410 345739 446291 including permanent tax 2421 145330 117038 liabilities (assets) Changes in deferred tax 2430 (32998) (20110) liabilities Changes in deferred tax assets 2450 28427 33493 Other 2460 14299 9381 Net income (loss) 2400 758891 1245824 REFERENTIAL Result from revaluation of 2510 - - fixed assets, not included in the net income (loss) for the period Result from other operations, 2520 14871 7026 not included in the net income (loss) for the period Combined financial results for 2500 773762 1252850 the period Basic earnings (loss) per 2900 - - share Diluted profit (loss) per 2910 - - share

Notes: 1. Specify the number of the corresponding note to the balance sheet and profit and loss statement. 2. The profit is shown deducting the value added tax and excises. 3. The total financial result of the period is defined as the sum of "Net income" (loss) " line," Result from revaluation of fixed assets, not included in the net income (loss) for the period" line and "Results from other operations, not included in the net income (loss) of the period" line.

INN 5018033937-- 1050 KPP 501801001 Page 4116 011 Interpretation of separate indicators of profit and loss statement The page is given in case of presence of transcripts Explanatio Name of indicator Code For the reporting For the similar ns period period of the previous year 1 2 3 4 5 Revenue (p.2110), including: Research and experimental 21101 21484988 19958741 development in the field of natural sciences and engineering Services in a construction 21102 646139 579797 sector, social sphere, sphere of trade and public catering Cost of sales (p.2120), including: Research and experimental 21201 19915385 18122542 development in the field of natural sciences and engineering Services in a construction 22202 596999 546821 sector, social sphere, sphere of trade and public catering Total profit (loss) (p.2100), including: Research and experimental 21001 1569603 1836199 development in the field of natural sciences and engineering Services in a construction 21002 49140 32976 sector, social sphere, sphere of trade and public catering Selling costs (p.2210), including: Research and experimental 22101 268642 90974 development in the field of natural sciences and engineering Management costs (p.2220), including - 22201 - - Profit (loss) from sales (p.2200), including: Research and experimental 22001 1394752 1820161 development in the field of natural sciences and engineering Services in a construction 22002 44651 41960 sector, social sphere, sphere of trade and public catering Revenue from investments in other companies (p.2310), including: - 23101 - - Interest receivable (p.2320), including: - 23201 - - Interest payable (p.2330), including: - 23301 - - Other types of revenue (p.2340), including Revenues, connected with 23401 246698 243946 provision of assets of the Corporation for temporary use with payment of corresponding fees Revenues, connected with sale 23402 2480203 4237193 of fixed assets and other assets - 23403 Other costs (p.2350), including: Costs, connected with 23501 158487 101941 provision of assets of the Corporation for temporary use with payment of corresponding fees Costs, connected with sale of 23502 2518391 4241062 fixed assets and other assets - 23503 - - INN 5018033937-- 1050 4130 KPP 501801001 Page 012 Report on changes in equity All-Russia Classifier of Management Documentation form 0710003 1. Capital transfer Authorized capital Own shares Additional Reserve Accumulated Total repurchased from capital fund surplus the shareholders (accumulate d losses) 1 2 3 4 5 6 Capital value on 31 December of the year, prior to the previous (3100) 1123734 - 903647 116008 1281129 3424518 (PREVIOUS YEAR) Capital increase – total (3210): - - - - including: - - - 1247738 1247738 net profit (3211) - - - 1245824 1245824 revaluation of - - - 1914 1914 assets (3212) revenues, directly - - - - - connected with the increase of the capital (3213) additional issue - - - - - of shares (3214) ------increase of the - - - - - nominal value of shares (3215) ------reorganization of - - - - - legal entity (3216) Capital decrease – - - - - - total (3220): - - - - 117123 117123 including: - - - loss (3221) - - - revaluation of - - - assets (3222) costs, directly - - - 4750 4750 connected with decrease of the capital (3223) reduction of the - - - - - nominal value of shares (3224) ------decrease of the - - - - - number of shares (3225) ------reorganization of - - - - - legal entity (3226) ------dividends (3227) - - - 112373 112373 Change of the - 5111 - 5111 - additional capital (3230) Change of the - - 52552 52552 - reserve capital (3240) INN 5018033937-- 1050 4147 KPP 501801001 Page 013 Authorized capital Own shares Additional Reserve Accumulated Total repurchased from capital fund surplus the shareholders (accumulate d losses) 1 2 3 4 5 6 Capital value on 31 December of the previous year (3200) 1123734 - 898536 168560 2364303 4555133 (REPORTING YEAR) Capital increase – total (3310): - - 6482139 - 758891 7241030 including: - - - 758891 758891 net profit (3311) - - - - - revaluation of - - - - - assets (3312) revenues, directly - - - - - connected with the increase of the capital (3313) additional issue - - - - - of shares (3314) - - - - - increase of the - - - - - nominal value of shares (3315) - - - - - reorganization of - - - - - legal entity (3316) Capital decrease – - - - - - total (3320): - - - - 357906 357906 including: - - - - - loss (3321) - - - - - revaluation of - - - - - assets (3322) costs, directly - - - 43260 43260 connected with decrease of the capital (3323) reduction of the - - - - - nominal value of shares (3324) ------decrease of the - - - - - number of shares (3325) ------reorganization of - - - - - legal entity (3326) ------dividends (3327) - - - 314646 314646 Change of the - 14882 - 14882 - additional capital (3330) Change of the - - - - - reserve capital(3340) Capital value on December 31 of the reporting year (3300) 1123734 - 7365793 168560 2780170 11438257 INN 5018033937-- 1050 4154 KPP 501801001 Page 014 2. Corrections, made due to changes in accounting policies and process of correction of errors Changes in equity for the previous year Name of indicator Code On December 31 of From the Because On December the year, prior to net of other 31 of the the previous profit factors previous (loss) year 1 2 3 4 5 6 Capital - total - - - before correction 3400 - - - - corrections, made in - - - - connection with: changes in accounting 3410 - - - - policy errors correction 3420 - - - - after correction 3500 - - - - including: - - - - accumulated surplus - - - - (accumulated losses): before correction 3401 - - - - corrections, made in - - - - connection with: changes in accounting 3411 - - - - policy errors correction 3421 - - - - after correction 3501 - - - - other parts of capital - - - - before correction 3402 - - - - corrections, made in - - - - connection with: changes in accounting 3412 - - - - policy errors correction 3422 - - - - after correction 3502 - - - - 3. Net assets Name of indicator Code On December 31 of On December 31 On December 31 the reporting of the previous of the year, year year prior to the previous 1 2 3 4 5 Net assets 3600 11850196 4827826 3556214 INN 5018033937-- 1050 4178 KPP 501801001 Page 015 Report on cash flows All-Russia Classifier of Management Documentation form 0710004 Name of indicator Code For the For the same period reporting year of the previous year 1 2 3 4 Cash flow from current operations Income - total 4110 37968777 31448510 including: sale of products, goods, works and 4111 34693801 28114822 services lease payments, license fees, 4112 164623 136786 royalties, fees and other similar payments resale of financial investments 4133 - - other types of income 4119 3110353 3196902 Payments - total; 4120 33159741 28775669 including: payments to suppliers (contractors) 4121 23633529 19459820 for raw materials, works or services in connection with the compensation of 4122 4219158 3786501 employees percent of the debt liabilities 4123 393636 192416 income tax 4124 464524 353018 other payments 4129 4448894 4983914 Balance of cash flows from current 4100 4809036 2672841 operations Cash flows from investment operations Income - total 4210 728494 1991947 including: sales of fixed assets (excluding 4211 5932 807 financial investments) sales of shares of other organizations 4212 139 2866 (market shares) return of loans, sale of debt 4213 650125 1846457 securities (rights of demand of funds to other persons) dividends, interest on debt financial 4214 72298 141817 investments and similar income from the share holding in other companies other types of income 4219 Payments - total; 4220 2980478 5689663 including: in connection with acquisition, 4221 1949757 984768 creation, modernization, reconstruction and preparation for use of non-current assets in connection with acquisition of 4222 510 - shares of other organizations (market shares) in connection with acquisition of debt 4223 103021 4704895 securities (rights to demand money to other persons), giving loans to other people and entities interest on debt obligations, included 4224 - - in the price of investment assets other payments 4229 - - Balance of cash flows from investment 4200 2251984 3697716 operations INN 5018033937-- 1050 4185 KPP 501801001 Page 016 Name of indicator Code For the reporting For the same period year of the previous year 1 2 3 4 Cash flow from finance operations Income - total 4310 8993329 3348241 including: receiving of credits and loans 4311 8993329 3348241 cash contributions of the owners 4312 - - (members) issue of shares, increase of market 4313 - - shares issuance of bonds, bills, other debt 4314 - - securities, etc. other types of income 4319 - - Payments - total; 4320 10371318 4353554 including: owners (shareholders) in connection 4321 - - with redemption of their shares (market shares) of organizations or their quit from the membership payment of dividends and other 4322 310809 110860 payments according to distribution of profits in behalf of the owners (shareholders) in connection with redemption of 4323 9759814 3930978 bills and other debt securities, repayment of loans and credits other payments 4329 300695 311716 Balance of cash flows from finance 4300 1377989 1005313 operations Balance of cash flows for a reporting 4400 1179063 2030188 period Balance of cash and cash equivalents 4450 1595043 3625231 at the beginning of a reporting period Balance of cash and cash equivalents 4500 2774106 1595043 at the end of a reporting period Effect of changes in foreign currency 4490 12785 11177 exchange rates against the rouble INN 5018033937-- 1050 KPP 501801001 Page 4192 017 Interpretation of separate indicators of a cash flow report The page is given in case of presence of transcripts Name of indicator Code For the reporting For the similar period period of the previous year 1 2 3 4 Filled indicators (p. 4114), including: - 41141 - - - 41142 - - Other receipts (p.4119), including: investors' share in construction 41191 2828238 1778760 processes - 41192 - - Filled indicators (p. 4125), including: - 41251 - - - 41252 - - Other receipts (p.4129), including: suppliers (contractors) for raw 41291 1200793 2362089 materials, works and services in connection with equity - 41292 - - Filled indicators (p.4215), including: - 42151 - - - 42152 - - Other receipts (p.4219), including: - 42191 - - - 42192 - - Filled indicators (p. 4225), including: - 42251 - - - 42252 - - Other receipts (p.4229), including: - 42291 - - - 42292 - - Filled indicators (p.4315), including: - 43151 - - - 43152 - - Other receipts (p.4319), including: - 43191 - - - 43192 - - Filled indicators (p.4324), including: - 43241 - - - 43242 - - Other receipts (p.4329), including: - 43291 - - - 43292 - - OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012.

OJSC «RSC Energiya» Notes to the balance sheet and financial results for 2012. 1. Main information 1.1 Main information The Open Joint Stock Company "Rocket and Space Corporation "Energiya" was established on the basis of a decree No. 415 of the Government of the Russian Federation, dated April 29, 1994. iii¡; A certificate of state registration is issued for "RSC "Energiya" and corresponding notes are provided in the Unified State Register of Legal Entities: main state registration number - 1025002032538. The certificate of state registration is issued on October 21, 2002 by the Inspection of the Russian Federation Federal Tax service No. 2 in the Moscow oblast The Company is registered at the following address: 141070, Moscow oblast, Korolev. Lenina st. 4a. 1.2 Branches (structural units) The Company had eight geographically separate structural units (including branches) as of 31.12.2012. The list of separate structural units (including branches)

No. Name Location KPP Activity Moscow oblast, Sergiev Posad district, instructional farm Activities of recreation 1 Recreation centre "Voskhod" 504202001 village "Sitniki", building no. centers, etc. 15 Krasnodar region, Tuapse Recreation centre of a Activities of recreation 2 district, vil. 235502001 sanatorium type "Vostok" centers, etc. Novomikhailovsky-2

Stavropol region, resort city Activities of recreation 3 Sanatorium "Krepost" 262802001 Kislovodsk, Prospect Mira 9 centers, etc.

The Republic of Kazakhstan, Maintenance and operation of 4 "Baikonur" 990103001 Kyzyl-Orda region, Baikonur-8 "Baikonur" objects

Other separate structural units No. Name Activity 1 Catering department Trade, catering 2 Social sphere department Social services 3 Sanatorium "Podlipki" Activities of recreation centers, etc.

Separate branch for works provision at the 4 Works provision at the "Plesetsk" launch site "Plesetsk" launch site

i 24 OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. The following changes were taken during 2012 as parts of separate structural units: creation of a separate unit, ensuring works performance at the "Plesetsk" launch site.

2. Significant aspects of accounting policies and presentation of information in financial statements

2.1 Basis for statements formation These financial statements are formed on the basis of existing rules for accounting and reporting of the Russian Federation, in particular, the Federal Law No.402- FZ "On Accounting", dated December 6, 2011, and Regulations on Accounting and Reporting of the Russian Federation, approved by a iii¡; corresponding order of the Ministry of Finance of the Russian Federation on July 29, 1998 (No. 34n) as well as other regulations in the system of accounting and reporting, functioning on the territory of the Russian Federation, Financial statements are prepared in accordance with accounting policies, approved by the order of the President of "RSC "Energiya" No. 524, dated December 31, 2011. 2.2 Assets, liabilities and transactions in foreign currency Accounting for transactions, made in a foreign currency, shall use exchange rates of a relevant currency, set by the Central Bank of the Russian Federation on the date of transactions. Cash on currency and deposit accounts with banks, funds for calculations, including loans, issued and received, loans, denominated in foreign currencies, shall be recorded in financial statements in amounts, set on the basis of an official exchange rate. Such rate amounted to 30.3727 roubles and 32.1961 roubles for 1 US dollar and 40.2286 roubles and 41.6714 roubles for 1 Euro on December 31, 2012 and 2011, respectively. Exchange rate differences, arising during the year in connection with assets and liabilities, denominated in foreign currencies, as well as their recalculation as of reporting date, shall be included in the structure of other income and costs. 2.3 Short-term and long-term assets and liabilities The balance sheet describes receivables and payables as short-term if their maturity (redemption term) is less than 12 months after the reporting date or if it is not set. All other assets and liabilities shall be presented as long-term. Financial investments and loans are classified as short-term or long-term on the basis of an expected period of use (circulation, possession or maturity) after the reporting date. 2.4 Changes in accounting policies Accounting policies of "RSC "Energiya" for 2012 have no changes, significantly affecting financial statements. 3. Disclosure of important indicators

3.1 Segment information Primary segment information is used for operating segments and secondary segment information is used for geographical segments in accordance with AR 12/2010 "Segment information". Such structure is formed on the basis of sources and nature analysis for risks, associated with activities of the Corporation, profits, gained by it, organizational and management structure and internal reporting systems, used to generate information. OJSC «RSC Energiya»

Primary information - operating segments

Activities of the Corporation can include one main operating segment:

- performance of research, development and experimental works on creation and operation of manned orbital complexes, launch vehicles, launch equipment of different classes, space telecommunication systems, means of broadcasting and satellite communications; other segments, including:

- services, connected with sanatorium treatment, services of children's health camps; iii¡; - provision of services in the sphere of trade and catering: - provision of social services; - provision of other services (for regime activities and recruitment for subsidiaries, printing services, etc.)

Provision of Performance of research, Provision of services for Provision of Provision of Total for the Indicator development and services in the sanatorium social services other services Corporation experimental work field of trade treatment

1 2 3 4 5 6 7 For 2012

Segment revenue 21 277 305 498 963 111 120 36 055 207 684 22 131 127

Profit (loss) from 1 378 456 14 390 -67 366 8 325 16 296 1 350 101 segment sales

Interest receivable 275 176 23 163 X 298 339

Interest payable -392 631 X -392 631

Income from participation in other 27 608 X 27 608 organizations Other types of income 3 731 877 2 693 23 122 753 X 3 857 346 Other types of costs -3 914 819 -5 894 -1 013 -124 135 X -4 045 861

Profit (loss) before 1 105 667 34 352 -68 356 6 943 16 296 1 094 902 taxation, segment

As of December 31, 2011 Segment assets 35 172 272 811 854 25 942 7615 X 36 017 683

Assets, not allocated to segments

Assets - total 35 172 272 811 854 25 942 7 615 X 36 017 683

Segment liabilities 30 617 139 811 854 25 942 7 615 X 31 462 550 OJSC «RSC Energiya»

Provision of Performance of research, Provision of services for Provision of Provision of Total for the Indicator development and services in the sanatorium social services other services Corporation experimental work field of trade treatment

Liabilities, not iii¡; allocated to segments

Liabilities - total 30 617 139 811 854 25 942 7615 X 31 462 550

As of December 31, 2010 Segment assets 56 168 749 1 030 104 39 797 8 624 X 57 247 274

Assets, not allocated to - - segments

Assets - total 56 168 749 1 030 104 39 797 8 624 X 57 247 274

Segment liabilities 44 730 492 1 030 104 39 797 8 624 X 45 809 017

Liabilities, not - - allocated to segments

Liabilities - total 44 730 492 1 030 104 39 797 8 624 X 45 809 017

Revenue (income) is generated as a result of transactions with purchasers and customers. Operations with other segments are not allowed. Income tax costs and other similar payments are not included in income (loss) segment calculations. Distribution of interest receivable, interest payable, income from participation in other organizations, other types income and costs, arising between segments "Carrying out of research, development and experimental works" and "Provision of other services" was not carried out as it was inexpedient and due to the lack of a necessary basis. These income and costs are related to activities of the Corporation as a whole. Segment assets consist of primarily fixed assets, construction in progress, stocks, production in progress, accounts receivable and other current assets other than deferred tax assets, financial investments and cash. Non-allocated assets are not included in segment assets, as they are not directly related to reporting segments and the required allocation base is missing for them.

Segment liabilities include mainly short-term liabilities, except liabilities to the budget, connected with the income tax, liabilities to loans and credits, used to finance activities of the Corporation as a whole, and deferred tax liabilities.

A combined share in net profits of associates and subsidiaries and total amount of investments in these Corporation elements are not disclosed in this section as they are not directly related to Corporation segments. OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. Secondary information - geographical segments

Geographical segments information (revenues from sales to external customers and financial results of such segments) are presented in the following table: ______th. roub.

iii¡; Geographical segments Sales (excluding VAT) Prime cost Profit on sales Return on sales, %

Domestic market 21 272 753 20 180 530 1 092 223 5,13 EU countries 71 400 60 371 11 029 15,45 Italy 569 574 340 908 228 666 40,15 Japan 13 107 10 093 3 014 23,00 USA 204 293 189 124 15 169 7,43 Total 22 131 127 20 781 026 1 350 101 6,10

Revenue is presented in terms of geographical segments by market locations. Assets and investments are classified in one geographical segment, chosen in accordance with location of assets - the Russian Federation, since capacities of the Corporation are located on the territory of the Russian Federation. 3.2 Intangible assets Accounting of intangible assets of the Corporation is conducted in accordance with AR 14/2007 "Accounting of Intangible Assets", approved by the Order of the Russian Ministry of Finance No. 153n, dated 27.12.2007. Accounting includes records on intangible assets at their historical (replacement) cost net of amortization, accumulated during the period of their use. Revaluation of intangible assets of the Corporation was not made in 2012. Amortization of intangible assets is done, using a linear method. Intangible assets and costs on research, development and engineering (R&D) works.

Availability and movement of intangible assets

Changes for a period At the beginning of the year At the end of a period Excluded Reevaluation

Accumulated Indicator Period Accumulated Amortization Impairment Accumulated Proceeded amortization and Accumulated Initial cost3 amortization and Initial cost3 charged losses Initial cost3 Initial cost3 amortization and impairment amortization impairment losses impairment losses losses

for 2012 (1) 8 026 -618 2 534 -9 7 -589 10 551 -1 200 Intangible assets - total for 2011 (2) 4 656 -309 3 561 -191 19 -328 8 026 -618

for 2012 (1) 8 015 -617 2 529 -9 7 -587 10 535 -1 197 including patents, licenses, know-how, copyrights, for 2011 (2) 4 649 -309 3 557 -191 19 -327 8 015 -617

for 2012 (1) 11 -1 5 0 0 -2 16 -3 Industrial designs and models for 2011 (2) 7 0 4 0 -1 11 -1

for 2012 (1) 0 0 0 0 Software, databases for 2011 (2) 0 0 0 0

Etc. OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. Intangible assets and costs on research, development and engineering (R&D)

Initial cost of intangible assets, created by the organization

Indicator As of December 31, 2012 (4) As of December 31, 2011 (2) As of December 31, 2010 (5)

Total 10551 8 026 4 656

including: iii¡; Patents, licenses, know-how, copyrights, 10 535 8015 4 649 (types of intangible assets) Industrial designs and models 16 11 7 (types of intangible assets) Software, databases (types of intangible assets) Etc.

Intangible assets with a fully repaid cost

Total - - - including: Patents, licenses, know-how, copyrights, (types of intangible assets) Industrial designs and models (types of intangible assets) Software, databases (types of intangible assets) Etc. OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. 3.3 R&D costs Non-current assets on separate sub-accounts of account 08 "Fixed assets" include performed scientific research and experimental design activities. Separate subaccounts of account 04 "Intangible assets" include performed scientific research and experimental design activities, finished and used in the process of goods (works, services) production. An accounting unit for R&D costs is an inventory item. An inventory item is considered as the sum of costs for performed works, the results of which are independently used in the process of goods iii¡; (works, services) production or for administrative needs of the Corporation. The costs are deducted, using a straight-line method. Depreciable term of R&D costs is determined on the basis of the expected life of received R&D results. Expected usage term and amortization method for costs on each R&D subject shall be set by a Technical Commission on the use of R&D results, approved by the Project Manager. R&D costs, not providing positive results, shall be deducted in other costs of a reporting period. A balance sheet reflects finished and used products for R&D production (works, services) in line 1120 "Results of research and development" Costs of performed scientific research and experimental design works are reflected in line 1170 "Other current assets". Line 1120 "Research and development results" of a balance sheet shows total costs on elements, completed and used in R&D activities of the Corporation in the amount of 73 673 thousand roubles. OJSC «RSC Energiya»

Presence and transfer of R&D results Changes for a period At the beginning of the year At the end of a period Excluded Part of the cost, Indicator Period charged to Part of the cost, Proceeded Part of the cost, Part of the cost, Initial cost charged to Initial cost charged to expenses during Initial cost charged to expenses expenses the period expenses

Research and For 2012 (1) 180 188 0 6 994 0 113 509 0 iii¡;73 673 0 development - total For 2011 (2) 277 562 0 67 532 0 164 906 0 180 188 0

For 2012 (1) 178 049 0 5 224 0 111 450 0 71 823 0 including assets, created as a result of R&D, performed on the basis of Corporation's own For 2011 (2) 273 878 0 65 020 0 160 849 0 178 049 0 funds

For 2012 (1) 2 139 0 1 770 0 2 059 0 1 850 0

Assets, created as a result of R&D, performed by means of trust financing For 2011 (2) 3 684 0 2512 0 4 057 0 2 139 0

etc OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. Unfinished and unformed research and development operations for acquisition of intangible assets

Changes for a period At the beginning of the Indicator Period excluded as costs, not accepted for accounting as At the end of a period year costs for a period giving a positive result intangible assets or R&D

For 2012 (1) 469 171 370 468 -3 613 -6 993 829 033 Costs of unfinished research and development - total For 2011 (2) 288 978 247 725 0 -67 532 iii¡; 469 171

including: For 2012 (1) 199 171 238 513 -3 613 -5 223 428 848 R&D performed, using Corporation's own funds For 2011 (2) 157 741 106 450 0 -65 020 199 171

For 2012 (1) 270 000 131 955 0 -1 770 400 185 R&D performed, using trust funds For 2011 (2) 131 237 141 275 0 -2 512 270 000 Etc. non-finished operations for For 2012 (1) 590 2 535 0 -2 534 591 acquisition of intangible assets - total For 2011 (2) 375 3 776 0 2 360 590

For 2012 (1) 588 2 535 0 -2 534 589 including: inventions For 2011 (2) 373 3 776 0 -3 561 588

For 2012 (1) 2 0 0 0 2 industrial designs For 2011 (2) 2 0 0 0 2

For 2012 (1) 0 0 0 0 0 databases, software, licenses For 2011 (2) 0 0 0 0 0

Notes to the balance sheet and financial results for 2012. 3.4 Fixed assets Fixed assets include assets, conforming to requirements of provisions on "Accounting of fixed assets" (AR 6/01), approved by the Order of the Ministry of Finance of Russia No. 26n, dated March 30, 2001, approved in a prescribed manner from the moment of their commissioning. The accounting documentation includes fixed assets, shown at historical (replacement) cost net of an accumulated amortization period of their use. Revaluation of land plots, owned by the right of ownership of "RSC "Energiya" was carried out as of 31.12.2012. iii¡;

Amortization of fixed assets, acquired and constructed before January 1, 2002, is based on uniform amortization rates, approved by the Decree of the USSR Council of Ministers No. 1072 "On uniform norms of amortization for recovery of fixed assets within the National Economy of the USSR" dated October 22, 1990, and for acquired - beginning from January 1, 2002 - at rates, based on estimated useful life terms.

The useful life for fixed assets is established in accordance with the Classification of Fixed Assets No. 1, approved by the Government of the Russian Federation, dated 01.01.2002 № 1.

A linear method is used for amortization calculation.

Assets with a life of more than 12 months are included in the inventory if their initial cost is not more than 40 thousand roubles per unit.

The corporation has fixed assets with the net value, amounted to 10,096,535 thousand rubles, on its balance sheet as of 31.12.2012. OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. Fixed assets. Availability and movement of fixed assets

Changes for a period At the beginning of the year At the end of a period Excluded Revaluation Indicator Period accumulated Charged, accumulated Proceeded accumulated accumulated initial cost (3) initial cost (3) amortization amortization initial cost (3) initial cost (3) amortization (6) amortization (6) amortization (6) (6)

For 2012 (1) 5 244 933 -2 404 091 1 233 826 -282 226 173 369 -305 070 6 435 794 0 12 632 327 -2 535 792 Fixed assets (excluding income-bearing investments in tangible assets - total For 2011 (2) 4 796 522 -2 258 953 530 072 -81 661 66 831 -211 969 0 0 5 244 933 -2 404 091

iii¡; For 2012 (1) 2 908 186 -1 049 528 487 895 -89 463 22 078 -43 519 3 306 618 -1 070 969 including: buildings For 2011 (2) 2 811 159 -1 016 395 100 813 -3 786 3 230 -36 363 2 908 186 -1 049 528

For 2012 (1) 235 031 -148 752 131 040 -4 850 4 850 -9 819 361 221 -153 721 structures For 2011 (2) 213 361 -145 194 25 297 -3 627 3 621 -7 179 235 031 -148 752

For 2012 (1) 103 602 -55 855 121 180 -1 458 1 458 -5 585 223 324 -59 982 transfer devices For 2011 (2) 80 205 -51 138 23 397 0 -3 515 103 602 -55 855

For 2012 (1) 1 317 177 -836 779 363 220 -66 182 54 342 -166 950 1 614 215 -949 387 machinery and equipment For 2011 (2) 1 166 849 -757 316 208 472 -58 144 43 926 -124 591 1 317 177 -836 779

For 2012 (1) 290 740 -165 921 79 295 -77 621 47 995 -72 511 292 414 -190 437 means of transport For 2011 (2) 277 537 -144 571 25 843 -12 640 12 609 -33 959 290 740 -165 921

industrial and household For 2012 (1) 164 408 -142 548 3 753 -42 550 42 544 -6 308 125 611 -106 312 equipment

For 2011 (2) 157 698 -139 977 10 107 -3 397 3 378 -5 949 164 408 -142 548 OJSC «RSC Energiya»

Fixed assets. Availability and movement of fixed assets (continuation)

Changes for a period At the beginning of the year At the end of a period Excluded Revaluation

Indicator Period Charged, accumulated accumulated accumulated accumulated initial cost (3) Proceeded initial cost (3) amortization initial cost (3) initial cost (3) amortization (6) amortization (6) amortization (6) amortization (6)

For 2012 (1) 82 -82 -72 72 0 iii¡; 10 -10 Perennial plantings For 2011 (2) 105 -105 -23 23 82 -82

For 2012 (1) 221 081 0 47 065 6 435 794 6 703 940 0 Land plots For 2011 (2) 85 351 0 135 730 0 0 221 081 0

For 2012 (1) 4 626 -4 626 378 -30 30 -378 4 974 -4 974 Other fixed assets For 2011 (2) 4 257 -4 257 413 -44 44 -413 4 626 -4 626

Accounted as a part of For 2012 (1) 172 302 -2 163 160 073 0 0 -7 195 332 375 -9 358 income-bearing investments in tangible assets - total For 2011 (2) 69 228 -433 103 074 0 0 -1 730 172 302 -2 163

including: property For 2012 (1) 172 302 -2 163 160 073 -7 195 332 375 -9 358

provided for commercial For 2011 (2) 69 228 -433 103 074 0 -1 730 172 302 -2 163 recruitment Etc. OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. Changing of the value of fixed assets in result of completion of construction, further equipping, renovation and partial liquidation

1 2 Indicator For 2012 For 2011

Changing of the value of fixed assets objects in result of completion of 374 288 82 941 construction, further equipping, renovation - total

including: buildings 290 695 42 208iii¡;

structures 10 566 2 736 transfer devices 10 784 0 machinery and equipment 62 193 37 481 means of transport 0 516 industrial and household equipment 50 0 perennial plantings 0 0 land plots 0 0 other fixed assets 0 0 Changing of the value of fixed assets objects in result of partial -2 644 -1 000 liquidation – total:

including: buildings -1 000 -1 000

structures 0 0 transfer devices 0 0 machinery and equipment -723 0 means of transport 0 0 industrial and household equipment -921 0 perennial plantings 0 0 land plots 0 0 other fixed assets 0 0 OJSC «RSC Energiya»

Other use of the fixed assets

As of December 31, 2012 As of December 31, 2011 As of December 31, 2010 Indicator (4) (2) (5)

Leased fixed assets on the balance 1 489 467 1 610 008 1 443 iii¡;861

Leased fixed assets, outstanding the balance

Received rent fixed assets on the balance

Received rent fixed assets, outstanding the balance 768 368 612 505 60 122

Real estate, accepted and actually used in the process of state registration

Fixed assets, transferred for conservation

Other types of use of fixed assets (mortgage, etc.) OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. 3.5 Non-finished construction Line 1190 "Other current assets" of the balance sheet describes: Non-finished capital investments

Changes for a period At the beginning of Indicator Period accepted for accounting as fixed At the end of a period the year costs for a period excluded assets or increased in terms of the cost iii¡; For 2012 (1) 1 794 034 2 786 069 -1 350 139 -1 077 098 2 152 866 Non-finished construction and non- finished operations on acquisition, upgrading, etc. of fixed assets - total For 2011 (2) 457 693 2 932 293 -1 050 044 -545 908 1 794 034

For 2012 (1) 1 601 399 2 353 331 -1 338 615 -719 285 1 896 830 including: Acquisition, construction and creation of fixed assets For 2011 (2) 264 503 2 662 401 -993 191 -332 314 1 601 399

For 2012 (1) 173 928 427 551 -5 339 -357 093 239 047 Modernization and reconstruction For 2011 (2) 2 333 249 460 0 -77 865 173 928

For 2012 (1) 2 511 787 0 -720 2 578 Acquisition of land plots For 2011 (2) 153 530 16 110 -31 400 -135 729 2511

For 2012 (1) 16 196 4 400 -6 185 0 14 411 Other For 2011 (2) 37 327 4 322 -25 453 0 16 196

Notes to the balance sheet and financial results for 2012. 3.6 Financial investments Investments with non-determined market values are accounted at their initial cost. The initial cost of investments, purchased for a fee, is the amount of actual costs for their purchase, except for value added tax and other taxes payable. Analytical accounting of investments is carried out in terms of groups and types of investment securities. Disposed investments, not having a market value, are stated at historical cost of each element. Income and costs from financial investments are recorded in groups with other income and costs. iii¡; Financial investments are stated net of impairment for objects of investments, shown the signs of sustained reduction in their value (the reserve amount was 798,087 thousand roubles and 798,087 roubles as of December 31, 2012 and 2011, respectively).

Other spheres of use of financial investments

As of December 31, 2012 As of December 31, 2011 Indicator As of December 31, 2010 (5) (4) (2)

Pledged financial investments - total 0 48 125

including: promissory notes 0 48 125

Etc. Investments, transferred to persons (other than sale) - total

including: promissory notes

Etc. Other types of use of financial OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. Presence and transfer of financial investments

Changes for a period At the beginning of the year At the end of a period Excluded accrual of interest Indicator Period (including bringing Current market value cumulative Proceeded cumulative cumulative Initial cost Initial cost initial cost to a (impairment losses) Initial cost adjustment 7 adjustment 7 adjustment 7 nominal level)

iii¡; For 2012 (1) 1 045 757 798 087 6416 -36 0 1 052 137 798 087 Long-term - total For 2011 (2) 1 045 761 797 331 9 363 -9 367 9 363 1 045 757 798 087 including: For 2012 (1) 118 890 0 6416 125 306 0 stocks and shares of For 2011 (2) 128 253 9 363 -9 363 9 363 118 890 0 subsidiaries For 2012 (1) 39 616 10 119 -10 39 606 10 119 Stocks and shares of affiliates For 2011 (2) 30 253 0 9 363 0 39 616 10 119 For 2012 (1) 887 251 787 968 -26 887 225 787 968 Other For 2011 (2) 887 255 787 968 -4 887 251 787 968 For 2012 (1) 3 773 693 0 1 070 014 -1 421 022 30 3 422 715 Short-term - total For 2011 (2) 1 736 834 0 23 347 086 -21 310 227 3 773 693

including: For 2012 (1) 2 726 125 -686 496 2 039 629 Debt securities (bonds, notes) For 2011 (2) 5 411 000 -2 684 875 2 726 125 For 2012 (1) 989 561 1 068 493 -685 521 1 372 533 Provided loans For 2011 (2) 844 005 2 027 509 -1 881 953 989 561 For 2012 (1) 58 007 1 521 -49 005 30 10 553 Other For 2011 (2) 892 829 15 908 577 -16 743 399 58 007 etc.

For 2012 (1) 4 819 450 798 087 1 076 430 -1 421 058 0 4 474 852 798 087 Financial investments - total For 2011 (2) 2 782 595 797 331 23 356 449 -21 319 594 9 363 4 819 450 798 082 OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. 3.7 Stocks

Stocks shall be accounted at their actual cost (in the amount of actual costs of their acquisition). Evaluation of exclusion cost for stocks is carried at the average cost. A way to calculate an average value is connected with planned evaluation, performed at the end of a month. The Corporation does not have stocks, become obsolete or wholly or partially lost their initial value, or stocks with decreased current market value on its balance as of December 31, 2012. Therefore, the reserve for impairment iii¡; of tangible assets was not created by the Corporation as of 31 December 2012.

3.8 Costs, non-finished production and finished goods

Non-finished production is assessed on the basis of total actual costs, including the appropriate proportion of general costs. General costs are allocated to orders monthly in proportion to values of elements, included in the section "Labor costs", direct production costs, other costs, connected with provision of Corporation assets for temporary use and costs of planned projects for a reporting month.

3.9 Prepaid costs

Costs, incurred by the Corporation during the reporting period, but related to future periods are accounted as prepaid costs. The structure of prepaid costs includes:

Costs for obtaining licenses for certain activities; Costs for non-exclusive rights to use software products; Costs, connected with the organization of construction works.

These costs are charged uniformly by appointment or by special calculations for periods to which they relate. OJSC «RSC Energiya»

Stocks Availability and transfer of stocks Changes for a period At the beginning of the year At the end of a period Excluded

stock turnover Indicator Period Income and impairment impairment impairment between their impairment cost value costs cost value losses iii¡;cost value reserve value reserve value groups (types) reserve value

For 2012 (1) 9 983 696 0 27 564 424 -21 223 239 0 X 16 324 881 0 Stocks - total For 2011 (2) 5125 734 0 24 165 195 -19 289 820 -17413 X 9 983 696 0

including: For 2012 (1) 257 591 0 1 082 735 -641 557 698 769 0 Raw materials and supplies For 2011 (2) 307 306 0 571 231 -605 190 -15 756 257 591 0 For 2012 (1) 9 559 880 0 26 022 561 -20 112 555 15 469 886 0 Non-finished production For 2011 (2) 4 810 469 0 23 014 459 -18 265 048 9 559 880 0

For 2012 (1) 0 0 0 Prepaid costs For 2011 (2) 0 0 0

For 2012 (1) 7 544 0 392 500 -389 934 10 110 0 Finished goods and goods for resale For 2011 (2) 7 959 0 342 601 -341 359 -1657 7 544 0

For 2012 (1) 158 681 0 66 628 -79 193 146 116 0 Other For 2011 (2) 0 236 904 -78 223 158 681 0

Notes to the balance sheet and financial results for 2012. Pledged stocks

Stocks, not paid at the reporting date - total .

including: pledge agreements iii¡; Etc.

Stocks, pledged under a corresponding agreement - total 0 974 875 1 348 625

including: Raw materials and supplies Non-finished production 0 974 875 1 348 625 Finished goods and goods for resale Other Etc. OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. 3.10 Trade receivables

Trade receivables are determined on the basis of prices, set by agreements between the Corporation and purchasers (customers), including VAT. Line 1230 "Receivables" of the balance sheet includes receivables (net of reserves for doubtful debts) in the amount of 1,115,986 roubles as of 31.12.2012. Accounts receivable include advances for future settlements, paid to other organizations in accordance with iii¡; contractual terms. The amount of advances is 18,113,512 thousand roubles as of December 31, 2012.

3.11 Cash resources

In accordance with the Order of the Ministry of Finance No. 66n "On forms of accounting in organizations", dated 02.07.2010, and P.18. AR 23 "Statement of Cash Flows", indicators of cash flows of an organization shall be reflected, using the Russian currency - roubles. Cash flow values, indicated in a foreign currency, shall be converted into roubles at an official exchange rate of foreign currencies, established by the Central Bank of the Russian Federation on the date of payment or payment receipt. OJSC «RSC Energiya»

Receivables and payables. Availability and flow of receivables.

Changes for a period At the beginning of the year At the end of a period Proceeded Excluded

in result of interest, transfer from Indicator Period accounted in reserve value transactions cancellation accounted in reserve value penalties and reserve long-termiii¡; to terms of a for doubtful (debt for a repayment for a financial terms of a for doubtful other charges recovery short-term debt contract debts transaction, result8 contract debts to be received operation)8

For 2012 (1) 3 327 562 0 1 742 191 -737 127 0 2 396 -2 582 324 1 752 698 0 Long-term receivables - total For 2011 (2) 1 379 118 -50 830 3 322 093 -137 610 0 50 830 -1 182 849 3 327 562 0

For 2012 (1) 0 0 6 440 0 2 396 0 8 836 0 including: Buyers and customers For 2011 (2) 56 670 -50 830 8 -3 488 0 50 830 -53 190 0 0

For 2012 (1) 3 317 252 0 1 735 751 -734 928 0 -2 582 324 1 735 751 0 Advances, issued For 2011 (2) 1 308 206 0 3 322 085 -130 190 0 -1 182 849 3 317 252 0

For 2012 (1) 10310 0 -2 199 0 0 8 111 0 Other debtors For 2011 (2) 14 242 0 -3 932 0 0 10 310 0

Notes to the balance sheet and financial results for 2012. Receivables and payables. Availability and flow of receivables (continuation)

Changes for a period At the beginning of the year At the end of a period Proceeded Excluded

in result of interest, transfer from Indicator Period accounted in reserve value transactions cancellation accounted in reserve value penalties and reserve long-term to terms of a for doubtful (debt for a repayment for a financial terms of a for doubtful other charges recovery short-termiii¡; debt contract debts transaction, result8 contract debts to be received operation)8

For 2012 (1) 10 908 107 -144 057 13 989 291 -9 270 725 -325 144 057 2 582 324 18 208 672 0 Short-term receivables - total For 2011 (2) 10 896 917 -272 375 8 130 149 -8 170 047 -2 102 272 375 10 908 107 -144 057

For 2012 (1) 336 116 -73 096 1 067 874 -296 840 73 096 1 107 150 0 including: Buyers and customers For 2011 (2) 459 823 -272 375 276 572 -453 467 -2 272 375 53 190 336 116 -73 096

For 2012 (1) 10 061 152 0 12 361 923 -8 627 326 -312 2 582 324 16 377 761 0 Advances, issued For 2011 (2) 9 892 468 0 7 343 606 -7 174 900 -22 10 061 152 0

For 2012 (1) 510 839 -70 961 559 494 -346 559 -13 70 961 723 761 Other debtors For 2011 (2) 544 626 0 509 971 -541 680 -2 078 510 839 -70 961

For 2012 (1) 14 288 859 -197 247 15 731 482 -10 058 646 -325 146 453 X 19 961 370 0 Etc.

For 2011 (2) 12 276 035 -323 205 11 452 242 -8 307 657 -2 102 323 205 X 12 276 035 -197 247 OJSC «RSC Energiya»

Overdue receivables

As of December 31, 2012 (4) As of December 31, 2011 (2) As of December 31, 2010 (5)

Indicator accounted under accounted under accounted under the terms of a balance value the terms of a balance value the terms of a balance value iii¡; contract contract contract Total 333 910 333 910 205 004 60 947 169 882 119 096

including: 333 711 333 711 134 043 60 947 169 882 119 096 Buyers and customers

Advances, issued

Other debtors 199 199 70 961 OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. 3.12 Capital and reserves

The value of the share capital is 1,123,734 roubles and it was not changed in 2012. According to a decision of the general meeting of shareholders, dividends in the amount of 314,645.5 thousand roubles are accrued on the basis of results of the Corporation for 2011. The Corporation charter provides establishment of a reserve fund in the amount of not less than 5% of an authorized capital. The fund is formed by compulsory annual deductions, amounting to at least 5% of net profit. iii¡;

3.13 Long-term liabilities

Line 1410 of the balance sheet ("Borrowings" section) shows total bank loans with maturities of more than 365 days as of 31.12.2012.

3.14 Credits and loans

Costs on received loans and credits are recognized as costs of a period in which they are incurred (current costs) and are included in other costs. Additional costs, incurred in connection with loans and credits, are included in other costs as incurred. Interest on loans is accrued evenly (monthly) and is recognized as other costs in accounting periods to which these accruals refer. The Corporation transfers long-term debts on received loans and credits to short at the moment when the terms of a contract provide principal repayment within 365 days. Line 1510 "Borrowings" reflects receivables of the Corporation under loan agreements, signed with banks, with maturity of less than 365 days as of 31.12.2012. OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. Availability and flow of accounts payable Changes for a period Proceeded Excluded At the beginning of transfer from long- At the end of a Indicator Period as a result of interest, penalties the year cancellation for a term to short-term period transactions and other charges to repayment financial result9 (transaction, be received 9 debt operation debt) For 2012 (1) - - - 0 0 0 Long-term receivables - iii¡; total For 2011 (2) - - - 0 0 0 -

For 2012 (1) - - - 0 0 0 - including: Credits and loans For 2011 (2) - - - 0 0 0 -

For 2012 (1) - - - 0 0 0 - Other For 2011 (2) - - - 0 0 0 -

For 2012 (1) 27 208 174 26 854 505 -12 781 109 -1 143 41 280 427 Short-term receivables - total For 2011 (2) 19 556 779 19 772 578 0 -12 121 023 -160 27 208 174

For 2012 (1) 2 063 781 2 156 059 -2 049 742 -1 075 2 169 023 including: Buyers and customers For 2011 (2) 1 809 169 2 060 039 -1 805 360 -67 2 063 781

Advances, issued For 2012 (1) 24 601 436 24 024 448 -10 194 224 0 38 431 660

For 2011 (2) 17 170 927 17 173 617 -9 743 108 0 24 601 436

Other debtors For 2012 (1) 542 957 673 998 -537 143 -68 679 744

For 2011 (2) 576 683 538 922 -572 555 -93 542 957

Total For 2012 (1) 27 208 174 26 854 505 -12 781 109 -1 143 X 41 280 427 OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. For 2011 (2) 19 556 779 19 772 578 -12 121 023 -160 X 27 208 174

iii¡; OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. Overdue accounts payable

As of December 31, As of December 31, As of December 31, Indicator 2012 (4) 2011 (2) 2010 (5) Total 141 084 143 312 287 740 including: 141 084 143 312 287 740 iii¡; Buyers and customers

Other Etc.

3.15 Taxation

Value-added tax A value added tax (VAT) for goods, products, works and services is calculated on the date of actual shipment (delivery) of such goods, products, works and services.

Income tax

For purposes of income tax calculation revenues are recognized in a reporting (tax) period in which they occurred, regardless of the actual receipt of cash or other assets (works, services) and (or) property rights (accrual basis). The income tax, determined on the basis of accounting profit (conditional costs on the income tax) amounted to 218,980 thousand roubles and 333,870 thousand roubles in 2012 and 2011, respectively. Current income tax is recognized in line 2410 "Report on financial results". It amounted to 345,739 thousand roubles in 2012 and 446,291 thousand roubles in 2011.

3.16 Deferred taxes

The Corporation reflects deferred tax assets and liabilities, permanent tax assets and liabilities in accounting and reporting documents, i.e. amounts which can influence a value of the income tax in current and / or future reporting periods.

Permanent differences Permanent differences in Corporation accounting resulted from the excess of actual costs, taken into account in the process of formation of accounting profit (loss) over costs, deductible for tax purposes, imposing restrictions on costs and other differences.

The sum of permanent tax liabilities (asset), calculated on the basis of temporary differences, is recorded in line 2421 "Report on financial results" and amounted to 145,330 thousand roubles in 2012 and 117,038 roubles in 2011 (recorded in line 2421 "Report on financial results"). OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. Deductible temporary differences

Deductible temporary differences amounted to 1423.35 thousand roubles in 2012, resulted due to differences in:

- recognition of targeted funding for accounting and tax purposes; - recognition of OPH losses in accounting and taxation; - recognition of other income and costs for accounting and tax purposes. iii¡; Changes in deferred tax assets are reflected in line 2450 "Report on financial results" with a total of 28,427 thousand roubles for 2012 and 33,493 thousand roubles for 2011.

Taxable temporary differences

Taxable temporary differences amounted to 164,990 thousand roubles in 2012, resulted due to differences in:

- assessment of non-finished production in accounting and taxation; - recognition of R&D costs in accounting and taxation; - amortization of fixed assets in accounting and taxation; - recognition of other income and costs in accounting and taxation.

Changes in deferred tax liabilities are reflected in line 2430 "Report on financial results" with a total of 32,998 thousand roubles in 2012 and 20,110 thousand roubles in 2011.

3.17 Prepaid income

Line 1530 "Prepaid income" of the balance sheet reflects the amount of target funding of 411,939 thousand roubles as of 31.12.2012.

3.18 Recognition of income (revenue)

Revenue from service rendering (works rendering) is recognized as services are provided to customers and payment documents are submitted to them (or at the end of works performance). It is reflected in financial statements net of the value added tax, excises and similar payments.

Accounting documents of the Corporation recognize revenue from works performance, rendering of services, selling of products with a long manufacturing cycle on completion of such works, services, products manufacture in general.

Other types of income of the Corporation can include:

 income, related to provision of assets of the Corporation for temporary use;  income, related to provision of rights arising from patents on inventions, industrial designs and other intellectual property of the Corporation for a corresponding payment; OJSC «RSC Energiya»

 income, related to participation in the authorized capital of other organizations;  income from the sale of fixed assets, stocks, investments, foreign currency;  interest, received from granting of funds of the Corporation for use;  difference between the original and nominal value of securities.

iii¡; OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. 3.19 Production costs

Line Indicator For 2012 For 2011 code Material costs 5610 19 191 099 17 178 709 Costs for salaries 5620 4 699 430 4 146 940 Social benefit costs 5630 1 197 998 1 053 174 Amortization 5640 260 513 212 753 iii¡; Other costs 5650 10 967 622 10 635 926 Total, for elements 5660 36 316 662 33 227 502 Change in balances (increase [-1-], decrease [-]): non finished 5670 +5 910 006 +4 833 861 production Finished products 5680 +2 566 -415 Other - - Total costs from ordinary activities 5600 36 316 662 33 227 502

Acquisition (production) costs and costs for use of energy resources Thousand roubles

Total costs for 2012 2011 Type of energy Use Use resource Acquisition Acquisition (production) For production For other (production) For production For other purposes purposes purposes purposes

Energy, including 182 823.0 161 417.4 21 405.6 171 369.7 150 839.0 20 530.7

-electric 73 100.2 65 263.8 7 836.4 67 091.0 59 898.8 7 192.2

-thermal 89 279.4 76716.0 12 563.4 89 685.3 77 064.8 12 620.5

-other 20 443.4 19 437.6 1 005.8 14 593.4 13 875.4 718.0

FUEL, including 26 800.0 26 800.0 0.0 21 249.5 21 249.5 0.0

-liquid: 26 800.0 26 800.0 0.0 21 249.5 21 249.5 0.0

-solid: 0.0 0.0 0.0 0.0 0.0 0.0

-gaseous: 0.0 0.0 0.0 0.0 0.0 0.0

Other 0.0 0.0 0.0 0.0 0.0 0.0

Total 209 623.0 188 217.4 21 405.6 192 619.2 172 088.5 20 530.7 OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. 3.20 Other income and costs

Thousand roubles

2012 2011 Other income / costs Income Costs Income Costs

Income and costs, connected with provision of 246 698 158 487 243 946 101 941 assets of the Corporation for temporary use iii¡;

Gains and losses of previous years, identified in the 158 051 178 065 867 74 256 reporting year

Exchange and value differences 234 054 320 250 272 741 234 580

Additional costs for the Corporation staff - 278 860 - 173 615 (premium, material aid sums, etc.)

Costs for works and services on terminated or non- concluded agreements, performed at the expense of - 4 261 - 48 182 the Corporation

Bank services - 26 599 - 20 511 Sale of fixed assets 5 932 30 817 684 1 253 Sale of other assets 2 474 132 2 487 574 4 236 509 4 239 809

Costs, associated with obtaining of loans and credits - 23 796 - 19 255

Reserves for doubtful debts - - . 144 057

Reserves for impairment of financial investments - - 756

Fines, penalties, taxes and charges, carried out at - 796 - 338 the own expense of the Corporation

Income from recovery of unused reserves for 93 258 - 323 205 - doubtful debts

Saves on investment projects 499 209 - 326 720 - Other income (costs) 146012 536 356 101 150 536 744

Total, other income / costs 3 857 346 4 045 861 5 505 822 5 600 410 OJSC «RSC Energiya»

3.21 Profit per share The amount of basic profit per share is 0.675 thousand roubles. Basic profit in the amount of 758,891 thousand roubles is used for the calculation together with the weighted average number of ordinary shares in the amount of 1,123,734. The number of ordinary shares was not changed during 2012. The statement of financial results does not show diluted earnings per share, as the Corporation does not have any convertible securities and contracts of sale/purchase of ordinary shares from their issuer on its balance.

3.22 Securing of liabilities iii¡;

As of December 31, As of December 31, 2011 As of December 31, Indicator 2012 (4) (2) 2010 (5)

Received - total 23 818 754 130 015 0

including: Deposit

Contract of bank guarantees, surety agreement 23 818 754 130 015

Etc. Issued - total 3 507154 4 554 862 1348625

including: Deposit 1 023 000 1 348 625

Surety agreement 3 507 154 3 531 862 Etc.

3.23 Related parties

Subsidiaries and affiliates List of subsidiaries of "RSC" Energiya"

Income from Value of the Corporation Corporation equity Place of registration of the participation Name share capital of equity interest as interest as of company / location in 2012, th. the company of 31.12.2012 31.12.2012 (%) roub.

1 2 3 4 5 6

CJSC "ZEM RSC Mosc. oblast Korolev, 40 000 th. roub. 40 000 th. roub. 100 27 290,8 "Energiya" Lenina st. 4a

CJSC "VKB RSC Samara, Zemetsa st. 26 "B" 10 000 th. roub. 10 000 th. roub. 100 — "Energiya" Moscow, Borovskoe CJSC "PO "Kosmos" 200 th. roub. 200 th. roub. 100 — Highway OJSC «RSC Energiya»

Income from Value of the Corporation Corporation equity Place of registration of the participation Name share capital of equity interest on interest on company / location in 2012, th. the company 31.12.2012 31.12.2012 (%) roub.

1 2 3 4 5 6 3 Vnukovo 3, bld. 1, pr. 1 iii¡; — Mosc. oblast Korolev, LLC "IC "Razvitie" 6 150 th. roub. 6 150 th. roub. 100 Lenina st. 4a

— LLC "RSC "Energiya Mosc. oblast Korolev, 500 th. roub. 500 th. roub. 100 Finance" Lenina st. 4a

— CJSC "Teplo RSC Mosc. oblast Korolev, 50 000 th. 50 000 th. roub. 100 "Energiya" Lenina st. 4a roub.

— Minsk, P. Brovki 15, bld. 5, CJSC "BELROSSAT" 25 000 $ 17 500 $ 70 of. 416

— Mosc. oblast Korolev, 16 874.3 th. 10 968.3 th. LLC "OIME" 65 Lenina st. 4a roub. roub.

— LLC "IPROVEN" RSC Mosc. oblast Korolev, 10 th. roub.. 5.1 th. roub.. 51 "Energiya" Lenina st. 4a

— CJSC "Energiya- Mosc. oblast Korolev, 1 000 th. roub. 501.0 th. roub. 50,1% Telecom" Lenina st. 4a

The corporation forms consolidated financial statements, combining financial statements of the Corporation and its subsidiaries, including information on affiliates. All subsidiaries are incorporated in the Russian Federation.

List of affiliates of OJSC "RSC "Energiya"

Corporation Value of the Corporation Income from Place of registration of the equity interest Name share capital of equity interest on participation in company / location on 31.12.2012 the company 31.12.2012 2012, th. roub. (%)

1 2 3 4 5 6 20.225 th. LLC "Experiment" Mosc. oblast Korolev, 10.0 th. roub. 49,48 44,2 roub. OJSC «RSC Energiya»

Corporation Value of the Corporation Income from Place of registration of the equity interest Name share capital of equity interest on participation in company / location on 31.12.2012 the company 31.12.2012 2012, th. roub. (%)

1 2 3 4 5 6 Lenina st. 4a

OJSC "Consortium Mosc. oblast Korolev, iii¡; "Kosmicheskaya 100.0 th. roub. 30.0 th. roub. 30,0 Lenina st. 4a Regata"

Moscow, 3-rd passage OJSC "NPK 110 867 th. Maryina Roscha 40, corp. 29 457 th. roub. 26,57 242,9 "REKOD" roub. 6, building 1

Moscow, Barrikadnaya st. 3 000.0 th. CJSC "Astrasystems" 756.0 th. roub. 25,2 8/5 roub.

Almaty, Republic of 140 000 000 99 000 000 JSC CRISP "Aelita" Kazakhstan, Furmanova st. 49,5 tenge tenge 50

All affiliates are incorporated in the Russian Federation.

The Company's share in the charter capital of subsidiaries was not changed in the reporting year. Operations with related parties The Corporation performed works and rendered services to the following related parties during the reporting year: th. roubles

Sales volume (excluding VAT) in Name of an affiliate Nature of the relationship 2012

CJSC "ZEM RSC "Energiya" Provision of significant impact 183 822.9

CJSC "PO "Kosmos" Provision of significant impact 5 429.5

LLC "OIME" Provision of significant impact 3 088.2

CJSC "Teplo RSC "Energiya" Provision of significant impact 21 241.1

Total 213 581.7 The following affiliates provided services (completed works) for the Corporation during the year: th. roubles

Sales volume (excluding VAT) in Name of an affiliate Nature of the relationship 2012 OJSC «RSC Energiya»

CJSC "ZEM RSC "Energiya" Provision of significant impact 10 355 155.0

CJSC "Teplo RSC "Energia" Provision of significant impact 297 178.0

CJSC "VKB RSC "Energiya" Provision of significant impact 12 960.0

Total 10 665 293.0

iii¡; As of December 31, 2012, the corporate debt for settlements with subsidiaries amounted to: th. roubles

Accounts receivable Accounts payable Company name 2012 2011 2012 2011 CJSC "ZEM RSC "Energiya" 13 510 208.7 10 056 410.0 376 707.2 377 282.0 LLC "OIME" 1 755.6 191.0 - 978,0 LLC "IPROVEN" 46.3 45.0 - - LLC "IC "Razvitie" 7.3 - - - CJSC "PO "Kosmos" 90 985.2 112 360.0 16 820.2 2 414.0 CJSC "VKB RSC "Energiya" 104 516.1 79 866.0 - 3 627 LLC "RSC "Energiya Finance" 4D - - - CJSC "Teplo RSC "Energiya" 234 661.7 232 787.0 70 546.4 15 406.0 CJSC "Energiya-Telecom" - - 930.7 5 563.0 Prices for products, goods, works and services, provided to the Corporation by its subsidiaries and delivered by the Corporation to its subsidiaries, are set on the basis of contracts, concluded in accordance with market prices. The Corporation accounts with its subsidiaries in cash.

As of 31.12.2012 and 31.12.2011 the Corporate debt settlements with subsidiaries were as follows: th. roubles

December 31 Form of indebtedness 2012 2011 Accounts receivable, including 13 942 185.0 465 004.5 - Noninterest-bearing loans - - - Noninterest-bearing notes - -

- Receivables, acquired under contracts of assignment - -

Accounts payable 465 004.5 405 270.0

The amount of interest, accrued in 2012 for loans, issued by the Corporation to its subsidiaries, amounted to 1 817.5 thousand roubles (CJSC "Teplo RSC "Energiya") The amount of interest, accrued for loans, issued by the Corporation to its largest related organizations (LLC "Energiya Overseas", LLC "Energiya-Logistics") was 87 280.5 thousand roubles and 35 363.5 thousand roubles in 2012 and 2011, respectively.

The Corporation issued loans to its largest subsidiary and other organizations at rates, ranging from OJSC «RSC Energiya»

7.0% to 12.0% and from 4.0% to 10.0% in 2012 and 2011, respectively. The amount of interest, accrued on the notes, issued by major related parties, amounted to 151 836.5 thousand roubles and 35 110.2 thousand roubles in 2012 and 2011, respectively. Remuneration of the President is approved by the Chairman of the Board of Directors of the Corporation. Remuneration of members of the Board of Directors of the Corporation is approved by the General Meeting of Shareholders.

3.24 Estimated liabilities iii¡; The balance sheet for 2011 contains line 1430 "Estimated liabilities" (in the amount of 312,255 roubles as of 31.12.2011), reflecting estimated liabilities for unused leaves; the amount, indicated in line 1540 "Estimated liabilities" in the balance sheet reflects estimated liabilities for 2012 as of 31.12.2012. Estimated liabilities for unused leaves of employees of the Corporation is reflected in line 1540 "Estimated liabilities" of the balance sheet for 2012 as of 31.12.2012 in the amount of 307,795 thousand roubles.

Estimated liabilities

Balance at Excluded as surplus Indicator Accepted Repaid End period balance beginning of year amount

Estimated liabilities - total 312 255 2 024 -6 484 0 307 795

Including: 0 0 Estimated liabilities for leaves

Estimated liabilities for onerous 0 0 contracts Estimated liabilities for 0 0 reorganization Estimated liabilities for quality 0 0 guarantees of sold products

Estimated liabilities for leaves 312 255 2 024 -6 484 307 795

3.25 Contingent assets and liabilities The Corporation has no contingent assets and liabilities as of December 31, 2012.. 3.26 Events after the reporting date The Corporation didn't face any events which are likely to have a significant impact on the financial condition, cash flows or results of operations of the Corporation in the period between the reporting date and the date of financial statements signature.

President: V.A. Lopota /signature/

Chief Accountant: E.M. Korogodina /signature/

Stamp: Open Joint Stock Company "Rocket and Space Corporation "Energiya", the Russian Federation, Korolev, Moscow Oblast, OJSC "RSC Energiya". OJSC «RSC Energiya»

AUDITORS' REPORT iii¡;

On accounting (financial) statements of "RSC "Energiya" for 2012, addressed to shareholders of "RSC "Energiya" and other users of statements

HLB PACC-Audit

Closed Joint Stock Company "H LB PACC-Audit"

Member of a self-controlled organization of auditors of the non-commercial partnership "Institute of Professional Auditors" (IPAR), certificate no. 34, included in the register of auditors and audit firms of the aforesaid organization of auditors on 28.12.2009 with a primary registration number 10302022506

The Certificate of State Registration of a Closed Joint Stock Company "H LB PACC-Audit" No. 549063, issued on November 13, 1995 by the Moscow Registration Chamber

Location: 109341, Moscow, Verhnie Polya st. 18, prem. 6

Postal address: 123610 Moscow, Krasnopresnenskaya nab. 12, ITC. OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. This report is addressed to shareholders of" RSC "Energiya" and other users of financial statements

Information about an audited entity: Name Main state registration number OJSC «RSC «Energiya» Location 1025002032538 141070, Moscow oblast, Korolev, Lenina st. 4a Information about an auditor: Name Main state registration number iii¡; Location CJSC "HLB PACC-Audit" Postal address 1027739402096 Name of the a self-controlled organization of auditors 109341, Moscow, Verhnie Polya st. 18, prem. 6 Main registration number in a registry of audit organizations 123610 Moscow, Krasnopresnenskaya nab. 12, ITC NP "IPAR", certificate no. 34 10302022506, dated 28.12.2009 We have audited the accompanying financial statements of "RSC" Energiya" for 2012. The financial statements of "RSC" Energiya" for 2012 consist of: balance sheet as of 31.12.2012, report on financial results for 2012, statement of changes in equity for 2012 , statement of cash flows for 2012, notes to the balance sheet and the financial results report for 2012:

Responsibility of an entity for financial statements

Management of an audited entity is responsible for preparation and fair presentation of these financial statements in accordance with corresponding accounting standards and for internal control, necessary for preparation of financial statements, which are free from material misstatement, whether due to fraud or errors.

Auditor's responsibility

Our responsibility is to express an opinion on these financial statements on the basis of our audit. We conducted our audit in accordance with federal auditing standards. These standards require that we shall comply with ethical requirements and requirements towards planning and performance of the audit, used to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit procedure involves performance of measures, used to obtain audit evidence, proving indicators and disclosing information in financial statements. The choice of audit procedures is a part of the auditor's judgment, based on assessment of risks of material misstatement, whether due to fraud or errors. The process of risk assessment includes our consideration of a system of internal control, providing preparation and fair presentation of financial statements, made in order to perform appropriate audit procedures, but not for a purpose of expressing an opinion on effectiveness of internal control. The audit procedure also includes evaluation of appropriateness of used accounting policies and reasonableness of estimates made by the management, as well as evaluation of an overall presentation of financial statements as a whole.

We believe that the audit evidence provides a reasonable basis for our opinion on aforesaid financial statements. OJSC «RSC Energiya»

Opinion

In our opinion, financial statements of "RSC "Energiya" present information on financial position of "RSC "Energiya" fairly, in all material respects as of December 31, 2012. Statements also provide results of operations and cash flows for 2012 in accordance with accounting standards of the Russian Federation. Director of a department of an audit company "HLB PACC-Audit"

I.G. Marich iii¡;

/signature/

On the basis of the power of attorney No.5, dated January 18, 2012. Auditor qualification certificate No. 02-000108, dated 22.02.2012, unlimited term, member of the NP "MPAR", membership certificate No. 629, dated 15.04.2005, ORN No. 20002001681

March 28, 2013 OJSC «RSC Energiya»

Notes to the balance sheet and financial results for 2012. OPEN JOINT STOCK COMPANY "ROCKET AND SPACE CORPORATION "ENERGIYA", NAMED AFTER S.P.KOROLEV

AUDIT COMMITTEE

Korolev, Moscow Oblast

11.04.2013

Members of the Audit Committee of "RSC "Energiya" are elected by the Annual General Meeting of Shareholders on 23 June 2012: Barinov S.A., Eliseeva L.V., Emelyanov V.S., Oreshkin O.A., Petrov iii¡; M.N., Pleshakov O.Y., Polezhaev E.P., Solonin A.M., Tushunov D.Y., pursuant to authorities, set by the corresponding Federal Law "On Joint Stock Companies", charter of "RSC "Energiya" and the Regulations on the Audit Commission. All members audited financial and economic activities of "RSC" Energiya" for 2012.

The audit was conducted in respect of annual reports of "RSC "Energiya" for the period from January 1, 2012 to December 31, 2012.

The analysis was conducted on the basis of documents, accounting and tax records, registers and explanations, provided by the management of the Corporation.

The analysis involved checks of information disclosure on financial and economic activities, evaluation and accounting practices, as well as rules for financial (accounting) statements and annual reports creation. Financial (accounting) statements and annual reports were checked in the process of such analysis.

The Audit Commission used spot check methods for individual operations.

All analysis results are set out in an explanatory note of the Audit Commission for activity of the OJSC "RSC "Energiya" in 2012.

CONCLUSION

Based on the results of an audit of financial and economic activity of OJSC "RSC "Energiya", checking the results of activity for 2012, the Audit Commission concludes that:

1. Financial statements for 2012 present fair (in all material respects) financial position of "RSC "Energiya" and results of its operations for the period from January 01, 2012 to December 31, 2012;

2. Presented annual report of "RSC "Energiya" for 2012 contains reliable information in its essential provisions, the description of which is stipulated by the legislation of the Russian Federation;

3. Violations of the Federal Law "On Joint Stock Companies", charter of "RSC" Energiya", decisions of the General Meeting of Shareholders, Board of Directors, caused negative effects of "RSC" Energiya", were not detected.

Head of the Committee S.А. Barinov