Q U A R T E R L Y R E P O R T Joint Stock Company Interregional Distribution Grid Company of Center and Volga Region Issuer’s code: 12665-E st for the 1 quarter of 2011 Issuer’s location: 33 Rozhdestvenskaya Str., Nizhny Novgorod City, Russia 603950 Information contained in this quarterly report shall be disclosed in compliance with the laws of the Russian Federation on securities General Director Date: 13 May 2011 E.V. Ushakov signature Chief Accountant Date: 13 May 2011 I.Yu. Rodionova signature Contact person: Marina Vladimirovna Borovkova, Leading Specialist of the financial investments management and information disclosure division in the corporate governance department of IDGC of Center and Volga Region, JSC Tel.: (831) 431-7400 #30-05 Fax: (831) 431-8391 E-mail: [email protected] Internet web page(s) used to disclose the information contained in this quarterly report: www.mrsk-cp.ru/?id=2933 1 Contents Contents 2 Introduction 5 I. Brief information on the persons forming part of the issuer’s governance bodies, information on the issuer’s 6 bank accounts, auditor, appraiser and financial consultant, and on other persons who signed the quarterly report 1.1. Persons forming part of the issuer’s governance bodies 6 1.2. Issuer’s bank accounts 6 1.3. Issuer’s auditor (auditors) 9 1.4. Issuer’s appraiser (appraisers) 11 1.5. Issuer’s consultants 11 1.6. Other persons who signed the quarterly report 11 II. Main information on the issuer’s financial and economic position 11 2.1. Indicators of the issuer’s financial and economic operations 11 2.2. Issuer’s market capitalization 12 2.3. Issuer’s liabilities 12 2.3.1. Accounts payable 13 The structure of the issuer’s accounts payable 13 2.3.2. Issuer’s credit history 14 2.3.3. Issuer’s liabilities from the security provided to third parties 15 2.3.4. Issuer’s other liabilities 16 2.4. Goals of the issue and lines of use of the money received as a result of equity securities placement 16 2.5. Risks related to purchase of equity securities, which are placed or in the process of placement 16 2.5.1. Sector risks 17 2.5.2. Country and regional risks 19 2.5.3. Financial risks 20 2.5.4. Legal risks 21 2.5.5. Risks related to the issuer’s activities 22 III. Detailed information on the issuer 23 3.1. History of establishment and development of the issuer 23 3.1.1. Information on the issuer’s firm name (naming) 23 3.1.2. Information on the issuer’s state registration 24 3.1.3. Issuer’s establishment and development history 24 3.1.4. Contact information 25 3.1.5. Taxpayer’s identification number 25 3.1.6. Issuer’s branches and representative offices 25 3.2. Issuer’s main economic activities 26 3.2.1. Issuer’s sector properties 26 3.2.2. Issuer’s main economic operations 27 3.2.3. Issuer’s materials, goods (raw material) and suppliers 29 3.2.4. Issuer’s sales markets of goods (works, services) 29 3.2.5. Information on the issuer’s licenses 30 3.2.6. Issuer’s joint activities 32 3.3. Issuer’s outline for future activities 33 3.4. Issuer’s participation in industrial, bank and financial groups, holdings, concerns and associations 34 3.5. Issuer’s subsidiaries and dependent economic entities 34 3.6. Composition, structure and value of the issuer’s fixed assets, information on plans for purchase, 39 replacement, retirement of fixed assets and on all facts of encumbrance of the issuer’s fixed assets 3.6.1. Fixed assets 39 IV. Information on the issuer’s financial and economic operations 41 4.1. Results of the issuer’s financial and economic activities 41 4.1.1. Profit and loss 41 4.1.2. Factors which had impact on change of the amount of the earnings from selling goods, products, 42 works, services by the issuer, and the issuer’s profit (loss) from main operations 4.2. Issuer’s liquidity, sufficiency of capital and current assets 42 4.3. Amount and structure of the issuer’s capital and current assets 43 4.3.1. Amount and structure of the issuer’s capital and current assets 43 4.3.2. Issuer’s financial investments 44 4.3.3. Issuer’s intangible assets 48 4.4. Information on the issuer’s policy and expenditure in the field of the scientific and engineering 49 development, in relation to licenses and patents, new developments and researches 4.5. Analysis of the development tendencies in the field of the issuer’s main activities 49 4.5.1. Analysis of factors and conditions influencing the issuer’s operations 49 4.5.2. Issuer’s competitors 51 V. Detailed information on the persons forming part of the issuer’s governance bodies, issuer’s bodies for control 51 2 over its financial and economic operations, and short data on the issuer’s employees (staff) 5.1. Information on the structure and competence of the issuer’s governance bodies 51 5.2. Information on the persons forming part of the issuer’s governance bodies 57 5.2.1. Membership of the issuer’s board of directors (supervisory council) 57 5.2.2. Information on the issuer’s executive body 71 5.2.3. Membership of the issuer’s collegial executive body 72 5.3. Information on the amount of remuneration, privileges and/or compensation of charges with regard to 80 each of the issuer’s governance body 5.4. Information on the membership and competence of the bodies controlling the issuer’s financial and 81 economic operations 5.5. Information on the persons forming part of the bodies controlling the issuer’s financial and economic 87 operations 5.6. Information on the amount of remuneration, privileges and/or compensation of charges with regard to 91 the body controlling the issuer’s financial and economic operations 5.7. Information on the number and general data on education and membership of the issuer’s employees 93 (staff), as well as on change of the number of the issuer’s employees (staff) 5.8. Information on any liabilities of the issuer to its employees (staff) which concern a possibility of their 93 participation in the charter (joint-stock) capital (share fund) of the issuer VI. Information on the issuer’s participants (shareholders) and interested-party transactions completed by the 93 issuer 6.1. Information on the total number of the issuer’s shareholders (participants) 93 6.2. Information on the issuer’s participants (shareholders) owning at least 5 percent of its charter (joint- 93 stock) capital (share fund) or at least 5 percent of its ordinary shares; information on participants (shareholders) of such persons owning at least 20 percent of the charter (joint-stock) capital (share fund) or at least 20 percent of their ordinary shares 6.3. Information on a stake of the government or municipal institution in the issuer’s charter (joint-stock) 94 capital (share fund), availability of a special right (“golden share”) 6.4. Information on restrictions for participation in the issuer’s charter (joint-stock) capital (share fund) 95 6.5. Information on changes in the structure and amount of the issuer’s shareholders (participants) owning at 95 least 5 percent of its charter (joint-stock) capital (share fund) or at least 5 percent of its ordinary shares 6.6. Information on interested-party transactions completed by the issuer 96 6.7. Information on the amount of debt receivable 97 VII. Issuer’s accounting reports and other financial information 98 7.1. Issuer’s annual accounting reports 98 7.2. Issuer’s quarter accounting reports for the last completed reporting quarter 140 7.3. Issuer’s consolidated accounting reports for the last completed financial year 142 7.4. Information on the issuer’s accounting policy 142 7.5. Information on the total amount of export, and on the export share in the total amount of sales 144 7.6. Information on the value of the issuer’s real estate and material changes which occurred in the structure 144 of the issuer’s property after the date of the end of the last completed financial year 7.7. Information on participation of the issuer in litigations, if such participation may have a material effect 144 on the issuer’s financial and economic activities VIII. Additional information on the issuer and on equity securities placed by it 144 8.1. Additional information on the issuer 144 8.1.1. Information on the amount, structure of the issuer’s charter (joint-stock) capital (share fund) 144 8.1.2. Information on change of the amount of the issuer’s charter (joint-stock) capital (share fund) 144 8.1.3. Information on formation and use of the reserve fund and other funds of the issuer 145 8.1.4. Information on the procedure of convening and carrying out of a meeting (proceedings) of the issuer’s 146 supreme governance body 8.1.5. Information on commercial organizations, in which the issuer owns at least 5 percent of the charter 147 (joint-stock) capital (share fund) or at least 5 percent of ordinary shares 8.1.6. Information on essential transactions completed by the issuer 149 8.1.7. Information on the issuer’s credit ratings 150 8.2. Information on each category (type) of the issuer’s shares 150 8.3. Information on the issuer’s previous equity securities, except for the issuer’s shares 150 8.3.1.