QUARTERLY REPORT JSC Interregional Distribution Grid Companies Holding Issuer Code: 55385-Е Quarter 1 of 2010 Registered address of the issuer: 117630 Russia, Moscow, ul. Akademika Chelomeya d. 5a The information contained in this Quarterly Report is subject to disclosure in accordance with the securities laws of the Russian Federation Director General Date: May 13, 2010 ____________ N. N. Shvets signature Chief Accountant Date: May 12, 2010 ____________ G. I. Zhabbarova signature Contact person: Kseniya Valerievna Ivanova, Head of the Information Disclosure Unit of the Department for Corporate Governance and Shareholder Relations Telephone: (495) 710-5595 Fax: (495) 710-6803 E-mail: [email protected] The information contained in this Quarterly Report is available on the Internet on the following page(s): www.holding-mrsk.ru 1 Contents Contents .................................................................................................................................................................. 2 Introduction............................................................................................................................................................. 5 I. Brief Information Concerning Individual Members of the Issuer’s Management Bodies, Details of the Issuer’s Bank Accounts, Auditor, Appraiser and Financial Advisor and Other Individuals Who Signed This Quarterly Report...................................................................................................................................................................... 6 1.1. Individual Members of the Issuer’s Management Bodies........................................................................ 6 1.2. Bank Account Details of the Issuer ......................................................................................................... 6 1.3. Information Concerning the Issuer’s Auditor(s).................................................................................... 10 1.4. Information Concerning the Issuer’s Appraiser(s)................................................................................. 13 1.5. Information Concerning the Issuer’s Advisors...................................................................................... 13 1.6. Information Concerning Other Individuals Who Signed This Quarterly Report................................... 13 II. Basic Information Concerning the Financial and Economic Condition of the Issuer....................................... 13 2.1. Financial and Economic Performance Indicators of the Issuer.............................................................. 13 2.2. Market Capitalization of the Issuer........................................................................................................ 14 2.3. Liabilities of the Issuer .......................................................................................................................... 15 2.3.1. Accounts Payable ............................................................................................................................... 15 Breakdown of the issuer’s accounts payable ................................................................................................ 15 2.3.2. Credit History of the Issuer................................................................................................................. 16 2.3.3. Liabilities of the Issuer with Regard to Collateral Furnished to Third Parties.................................... 17 2.3.4. Other Liabilities of the Issuer ............................................................................................................. 17 2.4. Goals of Issuance and Ways of Using Proceeds from the Issuance of Issue-Grade Securities.............. 17 2.5. Risks Associated with the Acquisition of Issue-Grade Securities (Being) Placed................................. 17 2.5.1. Industry-Specific Risks....................................................................................................................... 17 2.5.2. Country and Regional Risks ............................................................................................................... 18 2.5.3. Financial Risks ................................................................................................................................... 20 2.5.4. Legal Risks ......................................................................................................................................... 21 2.5.5. Risks Associated with the Issuer's Activities...................................................................................... 21 III. Detailed Information Concerning the Issuer ................................................................................................... 22 3.1. Establishment History and Development of the Issuer.......................................................................... 22 3.1.1. Data Concerning the Issuer's Corporate Name ................................................................................... 22 3.1.2. Information Concerning the Issuer's State Registration...................................................................... 23 3.1.3. Information Concerning the Issuer's Establishment and Development .............................................. 23 3.1.4. Contact Details ................................................................................................................................... 25 3.1.6. Branches and Representative Offices of the Issuer............................................................................. 25 3.2. Core Business Activities of the Issuer ................................................................................................... 26 3.2.1. Industry in Which the Issuer Operates................................................................................................ 26 3.2.2. Core Business Activities of the Issuer ................................................................................................ 26 3.2.3. Materials, Goods (Raw Materials) and Suppliers of the Issuer .......................................................... 28 3.2.4. Target Markets for the Issuer's Products (Work, Services)................................................................. 28 3.2.5. Information Concerning the Licenses Held by the Issuer...................................................................28 3.2.6. Joint Operations of the Issuer ............................................................................................................. 28 3.3. Plans for Future Activities of the Issuer ................................................................................................ 29 3.4. Participation of the Issuer in Industrial, Banking and Financial Groups, Holding Companies, Concerns and Associations........................................................................................................................................... 29 3.5. Subsidiaries and Dependent Business Entities of the Issuer.................................................................. 30 3.6. Composition, Breakdown and Value of the Issuer’s Fixed Assets, Information Concerning Plans for the Acquisition, Replacement, Retirement of Fixed Assets and All Evidence of Encumbrance of the Issuer’s Fixed Assets.................................................................................................................................................. 81 2 3.6.1. Fixed Assets........................................................................................................................................ 81 IV. Information Concerning the Issuer’s Financing and Economic Activities ..................................................... 82 4.1. Financial and Economic Performance of the Issuer............................................................................... 82 4.1.1. Profit and Loss.................................................................................................................................... 82 4.1.2. Factors Which Affected the Amount of Revenue from the Sale of Goods, Products, Work, Services by the Issuer and the Issuer’s Profit (Loss) from Operating Activities......................................................... 83 4.2. Liquidity of the Issuer, Capital and Current Asset Adequacy ............................................................... 85 4.3. Value and Structure of the Issuer’s Capital and Current Assets ............................................................ 86 4.3.1. Value and Structure of the Issuer’s Capital and Current Assets ......................................................... 86 4.3.2. Financial Investments of the Issuer .................................................................................................... 88 4.3.3. Intangible Assets of the Issuer............................................................................................................ 92 4.4. Information Concerning the Policy and Expenses Incurred by the Issuer in the Area of Scientific and Technological Development, in Respect of Licenses and Patents, New Developments and Research ........ 92 4.5. Analysis of Trends in the Issuer's Core Business .................................................................................. 93 4.5.1. Analysis of Factors and Conditions Affecting the Issuer's Activities................................................. 93 4.5.2. Competitors of the Issuer...................................................................................................................