Annual Report 2014 Appendices to the Annual Report JSC FGC UES Annual Report Appendices Contents Additional Information by Section of the Annual Report HIGHLIGHTS Key Performance Indicators The following appendices to the Annual Report are Change 2010 2011 2012 2013 2014 submitted to shareholders as part of the materials 2014/2013 for the Annual General Meeting of Federal Grid Financial Indicators Company and are available for all stakeholders at Revenues RUB mln 111,085 138,137 138,836 155,352 168,941 8.75% the Company’s website www.fsk-ees.ru Total cost (including administrative costs) RUB mln 82,501 92,900 116,510 132,948 140,259 5.50% Adjusted EBITDA RUB mln 68,301 84,683 82,809 96,296 99,603 3.43% Profit (loss) before tax RUB mln 67,312 11,444 - 14,270 - 17,672 14,338 181.13% 3 Additional Information by Section of the Annual Report Net profit (loss) RUB mln 57,082 - 2,468 - 24,532 - 25,898 5,137 119.84% 24 JSC “FGC UES” Account Statements Prepared in Adjusted net profit (loss) RUB mln 25,702 33,687 13,383 16,758 13,831 - 17.47% accordance with Russian Accounting Standards (RAS) For Adjusted net profit per share RUB 0.0208 0.0268 0.0106 0.0132 0.0109 17.42% the year ended 31 December 2014 Debt portfolio RUB mln 56,000 130,000 212,500 282,349 257,771 - 8.70% 52 Report on Federal Grid Company’s Compliance Market Capitalisation RUB mln 452,717 351,138 253,905 114,600 56,111 - 51.04% with the Corporate Governance Code principles and recommendations Total Shareholder Return, % 10.8 - 23.4 - 32.2 - 56.4 - 50.5 5.9 pp 62 Information on Transactions Return on equity % 3.3 4.1 1.6 2.0 1.6 - 0.4 pp 122 Information about the Actual Performance of Return on net assets % 3.8 5.4 1.7 4.0 1.6 - 2.4 pp Assignments of the President and the Government of the Financial leverage 0.14 0.22 0.32 0.44 0.44 - Russian Federation by Federal Grid Company in 2014 Non-Financial Indicators 126 Information about the Structure of the Property 1 Portfolio of Federal Grid Company and Changes to it in 2014 Number of substations units 805 854 891 919 924 0.54% 128 Information on disposal of non-core assets Length of electricity transmission lines2 thousand km 121.7 124.6 131.6 135.1 138.8 2.74% of JSC FGC UES in 2014 Transformer capacity of substations including MVA 311,008 322,533 334,797 332,009 332,412 0.12% 129 Management Report 2014 leased substations 148 IFRS Consolidated Financial Statements Declared capacity MW 91,179 90,937 90,492 91,398 90,887 - 0.56% Electricity supply to distribution grid companies, direct customers and independent energy joint mln kWh 486,364 503,948 514,057 522,711 518,093 - 0.88% stock companies, overseas power systems, net Electricity losses within UNEG mln kWh 22,526 22,553 21,946 22,262 21,261 - 4.50% Incident rate – number of incidents per 1,000 units 3.01 2.52 2.13 1.79 1.47 - 17.88% units in maintenance Number of process disturbances caused by units 61 57 39 19 18 - 5.26% human errors Actual implementation of the investment RUB bn 167.0 184.7 179.9 149.7 90.9 - 39.28% programme Average level of customer satisfaction with points 9.0 9.3 8.9 9.3 8.6 - 0.7 point technological connection services Accident frequency rate per 1,000 persons3 0.762 0.253 0.285 0.319 0.124 - 61.13% Tax payments to budgets of all levels RUB mln 13,746 15,741 9,980 13,082 20,156 54.07% Environmental costs RUB mln 186.1 155.0 142.5 206.7 225.8 9.24% Economic effect of measures implemented within RUB mln - 4 148.1 208.5 114.5 113.6 - 0.79% the Energy Saving and Energy Efficiency Programme 1 PTLs and SSs the ownership rights to which have been duly registered for Federal Grid Company and other owners, excluding leased PTLs and SSs with 10 kW voltage and lower operating on the territory of Krasnodar Krai and the Far East Federal University on Russky Island 2 See note 1 3 including fatal and group accidents due to non-performance/poor performance of job dutiesй 4 in 2010, methodological support of operations was provided and the Energy Saving Programme was developed 2 3 JSC FGC UES Annual Report Appendices STRATEGIC OVERVIEW Share of JSC Financial results for 2014 FGC UES in the GEOGRAPHY / SUBSIDIARIES AND ASSOCIATES Abbreviated corporate name Region of operation Main activity authorised capital of the organisation of the company as Net Revenue,RUB of 12/31/2014. profit,RUB thousand Internal documents of Federal Grid Company The main forms of interaction between the thousand that regulate the relationship with its Company and its subsidiaries and associates 5 JSC Elektrosetservis UNEG Moscow Maintenance and repairs of 100.00% 4,230,789 2,350 subsidiaries and associates Moscow Oblast electric grid facilities • Consideration by the Board of Directors of issues regarding Ryazan Oblast Novgorod Oblast • Procedure for Interaction with Subsidiaries and Associates of positions of the Company representatives on draft resolutions Novosibirsk Federal Grid Company on agenda items of General Meetings of Shareholders and Ulyanovsk Oblast meetings of Boards of Directors of subsidiaries and associates Pyatigorsk • Regulations on Managing Subsidiaries and Associates and other Yekaterinburg Entities in which Federal Grid Company has an ownership interest • Participation in drafting proposals and decision-making by Khabarovsk governing bodies of subsidiaries and associates through the Surgut • Standard for Structural Units of Federal Grid Company on Company representatives in General Meetings of Shareholders Building Positions and Instructing Representatives of the and meetings of Boards of Directors of subsidiaries and 6 Index Energetiki – FGC UES Moscow Securities transactions 100.00% 4,281 -2,486,552 Company in General Meetings of Shareholders and Boards of associates LLC Directors of Subsidiaries and Associates • Consideration by the Management Board of issues within its 7 JSC Tomsk Trunk Grids Tomsk Electricity transmission and 52.025% 218,725 40,400 • Procedure for KPI calculation and target achievement evaluation competence that relate to interaction between the Company Tomsk Oblast distribution services in Subsidiaries and Associates of Federal Grid Company and its subsidiaries and associates 8 JSC OES GruzRosenergo Georgia Electricity transmission services 50.00% 441,832 * 11,223 * • Federal Grid Company’s Order on Approval of Standards and Model In RF: Karachay- Cherkessia Regulations on Managing Subsidiaries and Associates, and other Krasnodar Krai. regulatory and administrative documents of Federal Grid Company 9 JSC Kuban Trunk Grids Krasnodar Electricity transmission and 48.999% 125,762 508,791 Krasnodar Krai distribution services Information about participation of Federal Grid Company in subsidiaries, associates, and other 10 JSC Inter RAO Moscow Electric power and heat genera- 14.0749% 32,646,668 434,170 Branches: tion organisations Ivanovo Oblast Representative Offices: Cuba, Share of JSC Financial results for 2014 Ecuador, Belgium FGC UES in the Abbreviated corporate name Region of operation Main activity authorised capital Non-core Companies of the organisation of the company as Net Revenue,RUB 11 JSC Mobile Gas-Turbin Power Moscow Electric power generation 100.00% 2,227,646 -286,939 of 12/31/2014. profit,RUB thousand Plant Moscow Oblast thousand Krasnodar Krai Tuva Republic Core Companies 12 CJSC APBE Moscow Research and analytical ser- 100.00% 55,817 -37,455 1 JSC MUS Energetiki Moscow Communication services 100.00% 1,660,394 55,009 Kazan vices in the field of forecasting Saint Petersburg electric power development Samara Yekaterinburg 13 JSC Glavsetservis UNEG Moscow December 27, 2014 record - - - Chita entered into USRLE (Unified Ulan-Ude State Register of Legal Entities) concerning liquidation of the 2 JSC R&D Centre of FGC UES Moscow R&D 100.00% 2,640,006 8,213 Company Novosibirsk 14 JSC Chitatechenergo Chita Communication services; design 100.00% 132,259 6,044 3 JSC CIUS EES Moscow Functions as the buyer and 100.00% 1,950,000 70,301 Ulan-Ude and maintenance of communi- Saint Petersburg developer in the field of capital cation lines Samara construction, reconstruction, Pyatigorsk and re-equipment of electric 15 JSC VESK Moscow Does not conduct business 100.00% - - Yekaterinburg grid facilities activities Krasnoyarsk Khabarovsk 16 JSC Nurenergo Chechen Republic Electric power sales 76.9996% 4,206,405 -1,022,208 Surgut 17 JSC GVC Energetiki Moscow Leasing out real property 50.0031% (50% plus 67,828 -22,537 4 JSC ESSK EES Moscow Acts as the procurement agent 100.00% 241,681 62,734 1 share) Saint Petersburg Yekaterinburg 18 CJSC Severovostokenergo Moscow Does not conduct business 49.00% 0 -10 Krasnoyarsk activities Samara Khabarovsk 19 JSC Energotechcomplekt Moscow Leasing out property 48.999% 10 488 - 12 20 IT Energy Service LLC Moscow Information technology services 39.999% 773,796 29,062 21 JSC ENIN Moscow R&D 38.24% 271,723 4,672 22 JSC UEUK Moscow Resolution adopted on voluntary 33.33% 0 5,881 liquidation 4 5 JSC FGC UES Annual Report Appendices Investment Programme section 2012 2013 2014 Share of JSC Financial results for 2014 FGC UES in the Abbreviated corporate name Assets covered by Agreements with Regional Administrations Region of operation Main activity authorised capital 2.3 13,485.45 4,277.52 3,066.13 of the organisation (other than Moscow, St.