Additional share issue Fundamentals Basic results of Private placement : INTER RAO share placement price – 0.0535 RUB Number of shares issued – 13,800,000,000,000 common shares Total number of shares placed with the participants of private placement – 6,822,972,629,771 shares. A total of 49.4% of newly issued shares were placed Number of shares placed with Inter RAO Capital – 2,917,890,939,501 (including shares for deal with Norilsk Nickel, stock option program and future deals) Final volume of Inter RAO’s authorized capital after private placement - 9,716,000,000,000 ordinary shares (increase by a factor of 3.36) Value of the share capital of the Company - 272.997 billion RUB* Total value of assets acquired by Inter RAO within the private placement: • Shares of utility companies - 283.2 bn RUB** • Cash – 81.8 bn RUB Share of government and state-owned companies in the authorized capital of Inter RAO amounts to 60%; Registration of additional share placement report by Federal Service for Financial Markets is planned for June 2011 Newly issued shares should start trading in June 2011 and merge into main symbol in October 2011 (MICEX) * Par value of 1 share - 0.02809767 RUB ** Value of assets based on independent appraisers. It does not include assets that might be received by INTER RAO’ s subsidiaries (closed subscription participants) after May, 17 2 Ownership structure Equity structure before Equity structure to May 17, 2011 Target equity structure after deals placement Minority finalization shareholders Federal Property Federal Property Minority Rosatom Management Management shareholders 45.1% 10.8% Agency 14.8% Minority Agency 30.1% shareholders 14.8% Rosatom 26.9% INTER RAO 13.4% Capital Rosatom 30.3% 13.4% (Norilsk Nickel, option program VEB etc.) VEB Gazprom 5.4% Norilsk 5.4% 6.5% Nickel 14.2% VEB Federal Grid Federal Grid RusHydro RusHydro 18.3% Company Company 5.3% 20.0% 5.3% 20.0% Main objectives: Implementation of best practices in corporate governance Getting international credit rating Listing on international stock exchanges Carrying out an international SPO (2012-2013) 3 Consolidation of energy assets Stake after Stake after Assets Ticker Assets Ticker consolidation, % consolidation, % GENERATION ASSETS GRID 100% Federal Grid Company FEES RX 0.37 Razdanskaya TPP Not trade 100 > 75% SUPPLY OGK-3 OGKC RX 81.93 100% ОGК-1 OGK1 RX 75.02* > 50% RN-Energo** Not trade 100 TGK-11 TGKK RX 67.53* Altayenergosbyt Not trade 100 > 25% Irkutskenergo IRGZ RX 40.01 > 75% TGK-7 (Volzhskaya TGK) VTGK RX 32.44 St.Petersburg Supply Company* PBSB RX 88.28 Enel OGK-5 OGKE RX 26.43 > 50% Kuban Generation Company KBRG RU 26.26 Tambovenergosbyt TASB RX 59.38 TGK-6 TGKF RX 26.08 < 25% Saratovenergo SARE RU 56.97 Bashkirenergo BEGY RX 22.23 Mosenergosbyt MSSB RX 50.92 Sangtudinskaya HPP-1 Not trade 16.66 > 25% OGK-6 OGK6 RX 13.20 31.27 Mosenergo MSNG RX 5.05 Tomsk Energy Retail Company TOSB RU RAO Energy System of East VRAO RX 4.29 26.26 ОGK-4 OGK4 RX 3.26 Kuban Energy Retail Company KBSB RX ОGK-2 OGK2 RX 3.05 Fortum (TGK-10) TGKJ RX 3.04 ENGINEERING Quadra (TGK-4) TGKD RX 2.25 Tomskenergoremont Not trade 25.88 Eniseyskaya TGK TGK13 RX 2.16 MANAGEMENT COPMPANY TGK-1 TGKA RX 1.97 United Energy Supply Company Not trade 100 Kuzbassenergo (TGK-12) KZBN RX 1.97 TGK-9 TGKI RX 1.71 OTHER ASSETS RusHydro HYDR RX 1.63 TGK-11 Holding TGHK RU 34.34 TGK-2 TGKB RX 1.19 TGK-14 TGKN RX 0.60 Novosibirskenergo NONG RX 0.18 ** INTER RAO Capital will receive this asset after May 17 * Includes stakes in OGK-1 (29,03% ) , in TGK-11 (2,79%) and in St. Petersburg Supply Company (24,99%) owned by INTER RAO before the additional share issue 4 Geography of Russian Assets • Total installed capacity (under management and control) – around 29 GW • Total installed capacity in Russia - 22,7 GW Ivanovskie CCP (Ivanovo Region) • Aggregate electricity output by generation assets in 2010 – 102,768 bn kWh Kashirskaya GRES Kostromskaya TPS (Moscow Region) (Kostroma Region) St.Petersburg Supply Pechorskaya TPS Company (St.Petersburg) (Komi Region) Permskaya TPS Kalinigradskaya CHPP-2 (Perm Region) (Kaliningrad Region) Severo-Zapadnaya CHPP Urengoyskaya TPS (Leningrad Region) (Yamalo-Nenetsk Region) Cherepetskaya TPS Nizhnevartovskaya TPS (Tula Region) (Khanty-Mansiysk Moscow Region) Mosenergosbyt (Moscow Region) Verkhnetagilskaya TPS (Sverdlovsk Region) Sochinskaya TPP (Krasnodar Region) TGK-11 (CHP in Omsk Tambov Energy Retail Region and Tomsk Company (Tambov Region) Region) Gusinoozerskaya TPS (Buryat Region) Kharanorskaya TPS Saratovenergo (Trans-Baikal Region) (Saratov Region) Iriklinskaya GRES (Orenburg Region) «Quartz» subsidiaries Yuzhnouralskaya GRES Tomskenergosbyt (Chelyabinsk Region) (engineering companies) (Tomsk Region) Generation assets Altayenergosbyt (Altay Region) Supply companies 5 Generation assets and distribution abroad 6 302 MW of installed capacity under management and control Moldova Kazakhstan Total electricity output in 2010 - 12,047* M kWh (+8,4%) Moldavskaya TPP, Total revenue of generation assets abroad - 13,288* million RUB Ekibastuzskaya TPP-2, 2,520 MW, (+18,7%) 1,000 MW, coal, 50% owned, gas/coal, 100% owned, output in 2010 – 5,439 M kWh output in 2010 – 4,619 M kWh Total revenue of distribution assets - 12,934* million RUB (+6,9%). * according to management reports (total generation abroad includes results of International Power Corporation and doesn’t include results of Armenian NPP) Lithuania Vydmantai WPP, 30 Moldavskaya TTP is one of the largest thermal PP in Eastern Europe MW, 100% owned, with the export potential to UCTE zone. It has ability to export UCTE output in 2010 – 54 M electric power to Romania, Belarus, Ukraine, Bulgaria kWh Ekibastuzskaya TPP-2 utilizes local cheap coals producing highly competitive electricity some of which is imported to Russia. The TPP generates about 8% of total electricity produced in Kazakhstan Mtkvari TPP is one of the most cost-efficient gas-fired PPs in Georgia Georgia Armenia (Tbilisi). It sells electricity to Telasi (distribution company, subsidiary Armenian NPP of INTER RAO) Razdanskaya Mtkvari TPP, Khrami HPP-1 and 815 MW, nuclear, TPP, 1,110 MW, 600 MW, gas, Khrami HPP-2, 227 under Khrami HPP-1 and Khrami HPP-2 are managed by INTER RAO UES. 100% owned, 100% owned, MW, hydro, 100% management, output in 2010 Both HPPs also sell electricity to Telasi output in 2010 owned, output in output in 2010 – – 348 M kWh - 580 M kWh 2010 – 682 M kWh 2,490 M kWh Razdanskaya TPP – one of the biggest power plants in Armenia with Georgia Armenia export potential to neighboring countries: Georgia, Iran. Telasi - Electric Networks Electric Networks of Armenia 75% owned, spread of 100% owned, spread of network- 3,685 km, output network- 30,218 km, output to network – 1,645 M kWh to network – 4,638 M kWh 6 Generation Distribution INTER RAO’s asset structure after consolidation INTER RAO will transfer managed assets to INTER RAO’s specialized management companies Minority >50% <50% Minority Government shareholders and Government INTER RAO UES shareholders and free float free float >50% >50% >=50% >=50% <50% Generation Supply companies Engineering Foreign assets Minority stakes (Geographic divisions) • Stakes in TGK-1, TGK-2, JV with Worley ENA Mosenergo, Quadra, TGK-6 OGK-1 Mosenergosbyt Parsons Telasi Volzhskaya TGK, TGK-9, OGK-3 St.Petersburg «INTER RAO UES Fortum, Kuzbassebergo, Supply Company Center for Energy» Khrami-1,2 Eniseyskaya TGK, TGK-14, TGK-11 (JV with Rosatom) Novosibirskenergo, Kuban Saratovenergo Mktvari Ivanovskie CCP , Generation Company JV with Alstom Kaliningradskaya Altaienergosbyt MGRES • Stakes in OGK-5, OGK-2, CHPP-2, JV with Fenice Tambov Energy Ekibastuzskaya TPS-2 OGK-4, OGK-6, RusHydro Sochinskaya TPP, (EDF) Retail Company Severo-Zapadnaya Razdanskaya TPP • Federal Grid Company JV with General TPP United Energy Electric Armenian NPP* Kuban Energy Retail Supply Company • CJSC «Generation Sangtudinskaya HPP-1* Company, Tomsk Energy Asset Retail Company, Management» Tomskenergoremont *Under management 7 Equity management strategy Fundamentals Approach to management of equity stakes received through consolidation Controlling stakes • Maintain control and integrate acquired asset into INTER RAO business model (>50%) • Increase assets’ operational efficiency and its attractiveness for investment • Consolidate controlling stakes Sizeable stakes • Use in asset swaps with Russian and international companies so as to consolidate controlling (5-50%) stakes in core industru businesses • Use in share capital of newly established JV Minority stakes • Use in asset swaps (<5%) • Monetization to provide financing of investment projects (if a swap is not feasible) 8 Стратегия распоряжения активами Основные принципы Принципы распоряжения пакетами акций, полученными в рамках дополнительной эмиссии Контрольные пакеты • сохранение контроля и интеграция предприятий в бизнес-модель ОАО «ИНТЕР РАО ЕЭС»; (>50%) • повышение операционной эффективности и инвестиционной привлекательности активов. • консолидация в собственности компании контрольных пакетов акций; • использование в рамках сделок по обмену активами с российскими и международными Значительные пакеты участниками с целью консолидации контрольных пакетов акций профильных отраслевых (5-50%) компаний; • внесение долей в уставные капиталы совместных предприятий, формируемых с иными участниками рынка. Миноритарные пакеты • участие в сделках по обмену активами; (<5%) • продажа для обеспечения целевого финансирования инвестиционных проектов компании (в случае невозможности обмена). 9.