Investor presentation October 2013 1 1 Disclaimer This document - - PowerPoint PPT Presentation

1 October 2013

Investor presentation

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2

Disclaimer

This document has been prepared by JSC “INTER RAO UES” (the “Company”). By attending the meeting where the presentation is made, or by reading the presentation slides, you agree to the following. This document does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision. No reliance may be placed for any purpose whatsoever on the information contained in this document or on assumptions made as to its completeness. No representation or warranty, express or implied, is given by the Company, its subsidiaries or any of their respective advisers, officers, employees or agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents. This document may include forward-looking statements. These forward-looking statements include matters that are not historical facts or statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the market in which the Company operates. By their nature, forwarding-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that the Company’s actual results of operations, financial condition and liquidity and the development

• f the market in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this

document. The Company does not undertake any obligation to review or confirm expectations or estimates or to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation.

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38 35 33,4 23.4 19.5 16 10.3 9.2 0% 5% 10% 15% 20% 25% 10 20 30 40

GEN Rus Hydro Rosatom ESE IES Holding E.ON Russia Enel OGK-5

INTER RAO At Glance

RUB bn. 2011 2012 Revenue 536.2 556.2 EBITDA 41.7 26.5 Total Assets 531.9 528.6 Adjusted Debt 48.6 64.8 Adjusted Net Debt

• 33.5

10.6 Debt/EBITDA 1.2x 2.4x

Ranking Among Major Integrated Utilities

• One of the largest national power generators with total installed

electricity capacity of 33.4 GW(1) and electricity output of 148.7 TWh

• Ranks among the largest European integrated utilities by overall

installed capacity

• Operates and manages 46 thermal, 13 hydro power plants and 2

wind farms

• Leading Russian export-import operator, 2012 export amounting to

18.4 TWh and import 2.6 TWh

• Largest Russian electricity supplier with 15% market share
• Majority owned by the Russian Federation
• Rated BB+ by Fitch, Ba1 by Moody’s

INTER RAO Ownership Structure Financial Perfomance

(1) INTER RAO’s installed capacity includes Russian generation assets, Bashkir GenCo and foreign generation assets (updated on 2nd of September, 2013). (2) Market shares are based on the output (3) Excluding Unallocated & Elimination and Other (4) Includes share in debt of jointly controlled entities Installed Capacity (GW) Market Share (%)

(2) (1) (4) (4)

Company Overview EBITDA Breakdown⁽³⁾ FY2012

Generation 50% Trading 14% Supply 21% Federal Grid Company 18,57% State 13,76% Rosatom 12,49% VEB 5,07% RusHydro 4,92% Norilsk Nickel 13,21% Treasure shares 13,93%

Minorities 18,06%

Foreign assets 15%

4

Asset Management Structure

– Omskaya CHPP-5 (695 MW) – Omskaya CHPP-3 (462 MW) – Omskaya CHPP-4 (435 MW) – Tomskaya TPS-2 (331 MW) – Tomskaya CHPP-3 (140 MW) – Tomskaya CHPP-1 (15 MW) GENERATION (27,453 MW) INTER RAO Electro- Generation (21,161 MW) – Kostromskaya TPS -3,600 MW – Iriklinskaya TPS - 2,430 MW – Permskaya TPS – 2,400 MW – Kashirskaya TPS - 1,910 MW – Nizhnevartovskaya TPS – 1,600 MW – Verkhnetagilskaya TPS – 1,497 MW – Cherepetskaya TPS – 1,285 MW – Gusinoozerskaya TPS – 1,100 MW – Pechorskaya TPS – 1,060 MW – Severo-Zapadnaya CHPP - 900 MW – Yuzhnouralskaya TPS - 882 MW – Kaliningradskaya CHPP-2 - 875 MW – Kharanorskaya TPS - 655 MW – Urengoyskaya TPS - 484 MW – Ivanovskie CCGT - 325 MW – Sochinskaya TPS - 158 MW LLC “MC INTER RAO – ElectroGeneration” TGK-11 (2,078 MW) Bashkir GenCo (4,214 MW) 100% 100% 100% 100% SUPPLY Guaranteed Suppliers: – JSC Mosenergosbyt (50.92%) – JSC St.Peterburg Supply Company (100%) – JSC Saratovenergo (56.97%) – JSC Altayenergosbyt (100%) – JSC Tambov Energy Retail Company (59.38%) – JSC IRAO – Orelenergosbyt (100%) – Tomsk Energy Retail Company (43.18%) Non Guaranteed Suppliers: – LLC Rn-Energo (100%) – JSC Industrial Energetics (51%) – LLC RT-Energotrading (50%) FOREIGN ASSETS (5,965 MW) Moldova, Transdniestria Republic:

• CJSC Moldavskaya GRES

(100%) – 2,520 MW Georgia:

• Mtkvari Energy LLC

(100%) – 600 MW

• JSC Khramesi GES I

(100%) – 112.8 MW

• JSC Khramesi GES II

(100%) – 114.4 MW – JSC Telasi (75%) Armenia:

• JSC RazTES (100%) –

1,110 MW – CJSC Elektricheskiye seti Armenii (100%) Kazakhstan:

• Ekibastuzskaya GRES-2

(50%) – 1,000 MW Lithuania:

• Vydmantai (51%) –

30 MW Turkey:

• Trakiya (100%) – 478

MW TRADING – RAO NORDIC OY (Finland) (100%) – AB INTER RAO Lietuva (Lithuania ) 51% – SIA INTER RAO Latvia (Latvia) (51%) – INTER RAO Eesti OU (Estonia) (51%) – INTER RAO Green Renewables and Trading AB (75%) – LLP Kazenergoresurs (Kazakhstan) (100%) – JSC «Eastern Energy Company» (100%) ENGINEERING – INTER RAO Engineering (100%) – Quartz New technology (100%) – Quartz Group (100%) – INTER RAO Worley Parsons (51%) – INTER RAO Interenergoeffect (50%) – INTER RAO Power Efficiency Center – JW with Rostec (25%), GE (50%) & INTER RAO (25%) (RUS Gas Turbines Holding) – INTER RAO Export (100%) – Fund Energy without Borders (100%) – Karmanovskaya TPS – 1,810 MW – 10 CHPPs (including Zauralskaya gas-piston plant) – 2,167 MW – 5 gas-turbine units - 25 MW – 9 HPPs (including 7 small-size plants) - 212 MW MINORITY STAKES – Irkutskenergo – 40.28% – RusHydro – 1.83% – Mosenergo – 5.05% – OGK-2 – 5.7% – Federal Grid Company – 0.37% – TGK-9 – 2.48% – TGK-1 – 1.97% – TGK-14 - 0,60% – Quadra – 2.25% – TGK-2 – 1.19% – TGK-14 – 0.6% Total minority stakes market value - 781 m. $⁽¹⁾

(1) As of September, 2013

INTER RAO GROUP

5

1,5 0,8 0,6 1,3 0,4 0,4 0,3 0,4 0,3 0,1 0,1 500 1 000 1 500 2 000 2 500 3 000 3 500 2013E 2014E 2015E 2016E – Payments calculated based on 13-14% allowed rate of return, 15-year payback period, benchmark OPEX and CAPEX, various adjustment coefficients

CAPEX 2013 - 2016

Generation CDA Generation Repairs*** International

New Generation Capacity and CAPEX in Russia

*** Generation Repairs includes maintenance, modernization and construction of buildings and facilities, supply companies, other capital expenditures and financial investment – Fuel type: coal – Fuel efficiency: 310 g/kWh / CUR**: 59% – Supplier: Power Machines , EMAlliance – Average CDA* payment : $696 ths per MW/year / $57 ths per MW/month since November 2012

$ bln

– Fuel type: gas – Fuel efficiency: 258 g/kWh / CUR**: 40% – Supplier: "NPO" Saturn “, Power Machines etc. – Average CDA* payment : $210 ths per MW/year / $18 ths per MW/month since March (166 MW), since June (325 MW) 2012 – Fuel type: gas – Fuel efficiency: 256 g/kWh / CUR**: 70% – Supplier: Power Machines , EMAlliance etc. – Average CDA* payment : $232 ths per MW/year / $19 ths per MW/month since December 2012 – Fuel type: gas – Fuel efficiency for TPP: 375 g/kWh / CUR** for TPP: 67% – Supplier for TPP: Turbomach – Average CDA payment for TPP: $447 ths per MW/year / $37 ths per MW/month since January 2013

Tomskaya CHPP-1 – 15 MW Kharanorskaya TPS – 225 MW Ivanovskiye CCGT – 325 MW Urengoyskaya TPS – 460 MW

* CDA (Capacity Delivery Agreement) is the same as CSA (Capacity Supply Agreement) ** CUR – Capacity Utilization Rate

1,167 MW New Capacity commissioned (CDAs)* in 2012-2013, incl.: Omskaya CHPP-3 – 82 MW

– Fuel type: gas – Fuel efficiency: 207 g/kWh / CUR**: 87% – Supplier: EMAlliance – Average CDA* payment : $437 ths per MW/year / $36 ths per MW/month since July 2013

During 2013-2016 total CAPEX will amount to $6 bn

3,2 1,5 1,1 0,4

Expected Project Type Total Capacity MW Total Capacity to be Commissioned, MW 2013 Yuzhnouralskaya TPS-2 New 400 1, 425 Cherepetskaya TPS New 225 Gusinoozerskaya TPS Modernisation 210 Djubginskaya TPP New 90*2 Nizhnevartovskaya TPS New 410 2014 Cherepetskaya TPS New 225 653 Yuzhnouralskaya TPS-2 New 400 Omskaya CHPP-3 Modernisation 60(10) Omskaya CHPP-5 Modernisation 98(18) 2015 Permskaya TPS New 800 1, 238 Verkhnetagilskaya TPS New 420 Omskaya CHPP-5 Modernisation 98 (18) 2016 Ekibastuzskaya TPS New 600 720 Omskaya CHPP-3 New 120

4,036 MW New Capacity to be commissioned in 2013-2016, incl.:

6

Key Developments 2012-2013

ACQUISITION OF BASHKIR GENERATION AND TRAKYA ELEKTRIK AT THE END OF 2012 POSITIVELY IMPACTED 1H2013 IFRS RESULTS

These assets contributed to EBITDA about 3 bln rubles 1

EBITDA MARGIN OF GENERATION SEGMENT REACHED 20% DRIVEN BY NEW DPM CAPACITY LAUNCHES AND POWER PRICE GROWTH

Commission over 1 GW of new generating capacity under CDA (Ivanovskie CCGT, Kharanorskaya GRES, Urengoyskaya GRES, Tomskaya CHPP-1 and Omskaya CHHP-3) 2

GRADUAL IMPROVEMENT OF EFFICIENCY IN MAIN BUSINESS SEGMENTS 3

• Generation: fuel costs and loading factor optimization

and etc.

• Heat generation: optimization of management structure,

raising heat tariffs and etc.

• Supply: semi-fixed costs optimization, stuff reduction

and etc.

FINALIZING TARGET STRUCTURE OF ASSETS 4

Over $1,5 bln raised as a result of minorities stakes disposal

7

IFRS Financial Results 1H 2013

8

Rub m

1H2013 1H2012 Change

Revenue

317 743 262 799 20.9%

Adjusted EBITDA

21 643 17 065 26.8%

EBITDA margin

6.8% 6.5% 0.3%

Adjusted EBIT

9 220 9 423

• 2.2%

Net (loss)/income

• 13 845
• 10 054
• Adjusted net profit⁽³⁾

10 943 9 010 21.5%

FCF

• 4 971
• 17 017
• Rub m

As of 30.06.2013 As of 31.12.2012 Change

Total Assets

515 607 528 583

• 2.5%

Total Equity

342 264 353 189

• 3.1%

Adjusted Total Debt⁽¹⁾

66 915 64 716 3.4%

Adjusted Net Debt⁽²⁾

21 003 10 557 98.9%

Note: Includes financial results of Bashkir Generation from the date of acquisition – November 2012 and Trakya Elektrik – December 2012. (1) Includes share in debt of joint ventures RUB 6 093 m as of 30.06.2013 г. (RUB 5 305 m as of 31.12.2012) (2) Includes cash deposits (3-12 months) RUB 2 537 m as of 30.06.2013 (RUB 6 110 m as of 31.12.2012) and share in debt of joint ventures of RUB 6 093 m as of 30.06.2013 (RUB 5 305 m as of 31.12.2012) (3) Adjusted net income – excludes provision and impairment (RUB 17 163 m for the 1H2013 , RUB 14 342 for the 1H2012 ) and effect of recognition of “Put” and “Call” option (RUB 7 625 m for the 1H2013 and RUB 4 722 m for the 1H2012)

Evolution of Key Financials – 1H2012/1H2013

9

8 123 + 8 848 16 971 2 724

• 673

2 051 4 627

• 2 525

2 102 2 393 + 70 2 463

• 109

+ 479 370

• 693
• 1 621
• 2 314

EBITDA 1H2012 EBITDA 1H2013 55 580 + 29 717 85 297 21 669 + 3 457 25 126 174 118 + 17 371 191 489 10 519 + 5 159 15 678 913

• 760

153 Revenue 1H2012 Revenue 1H2013

317 743 +20.9% 17 065 +26.8%

Evolution of Key Financials – 1H2012/1H2013

Generation Trading Supply Foreign assets Revenue Bridge EBITDA Bridge Generation Trading Supply Foreign assets

RUB m RUB m

EBITDA increase mainly in Generation due to new capacity commissioning and acquisition of Bashkir Generation

Other Other 262 799 21 643 Unallocated and eliminations

71% 9% 9% 10% 1%

EBITDA Breakdown 1H2013⁽¹⁾

27% 8% 60% 5% 0.05%

Revenue Breakdown 1H2013

10

174 118 191 489 4 627 2 102 50000 100000 150000 200000 1H2012 1H2013

Financial Results by Business Segments for the 1H2013

55 580 85 297 8 123 16 971 15000 30000 45000 60000 75000 90000 1H2012 1H2013 RUB m Revenue EBITDA EBITDA margin 14.6% 19.9% Organic growth⁽²⁾ 21 669 25 126 2 724 2 051 10000 20000 30000 1H2012 1H2013 RUB m Revenue EBITDA EBITDA margin 12.6% 8.2% RUB m Revenue EBITDA EBITDA margin 2.7% 1.1%

(1) Excludes financial results of Bashkir Generation, that is recognized from the date of acquisition – November 2012 г.

10 519 15 678 2 393 2 463 3000 6000 9000 12000 15000 18000 1H2012 1H2013 RUB m Revenue EBITDA EBITDA margin 22.7% 15.7%

Generation Supply Trading Foreign Assets

11

64 716 10 557 66 915 21 003

• 45000
• 30000
• 15000

15000 30000 45000 60000 75000

Adjusted Debt Adjusted Net Debt

64 716 66 915 59 411 60 822 20000 40000 60000 80000 as of 31.12.2012 as of 30.06.2013

Debt and Liquidity Analysis

Debt Composition (as of 30.06.2013) Debt Maturity Profile⁽¹⁾ Net Debt Evolution

By maturity By currency

Short-term 38% Long-term 62%

Total Debt Evolution⁽²⁾

as of 31.12.2012 as of 30.06.2013 RUB 64 % USD 28% EUR 5% Other 3% RUB m 23 259 18 273 17 820 1 470 9000 18000 27000 36000 45000 Less than 1 year 1-2 years 2-5 years More than 5 years

(1) Includes financial lease (2) Includes share in debt of joint ventures in the amount of RUB 6 093 m as of 30.06.2013 (RUB 5 305 m as of 31.12.2012) (3) Includes cash deposits (3-12 months) in amount of RUB 2 537 m as of 30.06.2013. (as of 31.12.2012 – RUB 6 110 m) and share in debt of joint ventures in amount of RUB 6 093 m as of 30.06.2013 (as of 31.12.2012.- RUB 5 305 m) (4) Calculation of total debt-to-EBITDA ratio as of 30.06.2013 based on LTM EBITDA

⁽²⁾ ⁽³⁾

Includes share in debt of joint ventures Excludes share in debt of joint ventures

2.44x 2.15x

#x Total debt-to-EBITDA ratio(4)

RUB m RUB m

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Gradual Operational Improvement

GENERATION HEAT SUPPLY

• Optimize semi-fixed costs (annually 1 cop/kWt, that will reduce the costs by 15% by 2015)
• Optimize number of personnel – by 2014 the planned reduction will reach 9% (could bring around 1 bln rub of savings annually)
• Work with regional energy commission on increasing regulated supply margins (from the 01.07.2013 supply margins for IRAO

supply companies increased by 35%)

• Bring to the market new products, provide additional services with higher margins
• (by 2015 income should increase almost

twice, to 280 mln rub)

• Improve liquidity of receivables – management intend to decrease turn over of receivables up to 15 days by 2014

Optimize fuel costs

• Optimize coal consumption, switch to alternative types of coal
• Negotiate better terms with coal suppliers

Optimize loading factor

• Reduce loading of inefficient plants and increase loading of efficient plants
• Decommission inefficient generation (around 1 GW within next 3 years)
• Cost optimisation self-usage electricity consumption by 5% (in 2014 )

Optimize reconstruction and repairs costs

• Keep costs at the level of 2013 but implement all the necessary repairs to provide security

Staff reduction

• Cut personnel up to 22%, incl. outsourcing of services (could yield around 1 bln rub of savings annually)
• Optimize number of personnel integration of management of Bashkir generation and TGK-11 on the basis of “Heat” Division of Inter RAO UES

will lead to 20% personnel reduction

• Work with regional energy commission on economically justified heat tariffs (from 01.07.2013 heat tariffs for Bashkir Generation increased by

9%, for Bashkir Heat Grids by 35%. It will increase EBITDA by 700 mln rub in 2013)

• Decommission inefficient boiler plants and include investment component into tariff to build new units or for modernization
• Spin off loss-making heat grids from TGK-11 to get economically justified tariffs for heat transportation

1 2 3

13

Appendix

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• 1. Operational Performance Results 1H 2013

15

6 176 7 757 11 011 680 21 161 1 986 4 214 5 965

Electricity and Heat Production

Installed Electric Capacity

TGK-11 IRAO – Electricity Generation Bashkir Generation Foreign Generation Total: 33 326 MW

Note: Operational results of Bashkir Generation and Trakya Elektrik are presented on LFL basis, operational results of Group’s subsidiaries are presented on an aggregate basis without excluding inter-segment transactions

48.5 50.1 4.9 4.8 11.0 10.2 8.5 7.1 10 20 30 40 50 60 70 80 1H2012 1H2013

Electricity Production

72.3

• 0.8%

TWh

72.9

Installed Heat Capacity Heat Production

Total: 25 622 Gcal/h Load Factor 49.9% Load Factor 21.4%

2.6 2.5 9.0 9.2 13.2 11.8 0.1 0.1

5 10 15 20 25 1H2012 1H2013

23.6

• 5.0%
• Mln. Gcal

24.9

TGK-11 IRAO – Electricity Generation Bashkir Generation Foreign Generation TGK-11 IRAO – Electricity Generation Bashkir Generation Foreign generation TGK-11 IRAO – Electricity Generation Bashkir Generation Foreign generation

16

(1) For Russian power generation assets

Gas 75% Coal 24% Fuel

• il/Petroleum

products 1%

Fuel Consumption

Fuel Mix Gas Suppliers⁽¹⁾ Total gas consumption for Inter RAO Group reached: 16,281 mcm Total coal consumption for Inter RAO Group reached 10,334 ths. tons

52% 37% 9% Other 2% Fuel Efficiency

Основной Основной Основной Основной 100 200 300 400 IRAO - Electricity Generation TGK-11 Bashkir Generation Foreign Generation

320.2 #

• fuel efficiency for Inter RAO Group

g/kWh 65% 55% 54% 7% 23% 9% 24% 1% 36% 4% 21% 2% 0% 20% 40% 60% 80% 100% Gas Coal Fuel oil

Fuel Consumption Breakdown

TGK-11 IRAO – Electricity Generation Bashkir Generation Foreign Generation

17

22% 10% 68%

Electricity Supply

Electricity Sales to Customers⁽¹⁾

TWh

Retail Electricity Sales Breakdown Number of Customers Supply Margins of Guaranteed Suppliers⁽²⁾

(1) Includes electricity sales in retail and wholesale markets (2) Weighted average supply margin by group of customers

Legal entities, thousand accounts Households, thousands accounts

382 400 1H2012 1H2013

+4.9% +1.6%

RUB/MWh 1H2013 1H2012 Non-guaranteed suppliers Guaranteed suppliers

77.5 76.2

• 1.7%

11 199 11 378

1H2012 1H2013 Loss compensation Households and equated groups of customers Other customers

84 104 98 88 98 103 103 139 113 115 109 118

20 40 60 80 100 120 140 160

Mosenergosbyt Group PSK Group Altayenergosbyt Saratovenergo Tambov Supply Company IRAO- Orelenergosbyt

+15.2%

64.0 64.0 13.5 12.2

20 40 60 80

1H2012 1H2013

Average change of supply margins

18

600 700 800 900 1000 J a n 2 1 2 F e b 2 1 2 M a r 2 1 2 A p r 2 1 2 M a y 2 1 2 J u n 2 1 2 J u l 2 1 2 A u g 2 1 2 S e p 2 1 2 O c t 2 1 2 N

• v

2 1 2 D e c 2 1 2 J a n 2 1 3 F e b 2 1 3 M a r 2 1 3 A p r 2 1 3 M a y 2 1 3 J u n 2 1 3

Trading in The Russian Market

Electricity Price Dynamics on the Spot Market Electricity Sales Breakdown, TWh Capacity Price Dynamics on the Wholesale Market⁽²⁾

RUB/MWh Half-year average price for the 1st price zone Half-year average price for the 2nd price zone 655 877 977 754

Capacity Sales Breakdown(1), MW

(1) The breakdown is only provided for electricity sold on the wholesale market (2) Capacity prices dynamics is calculated on the base of nominal average price of 1MW of capacity sold in each market segment

Regulated agreements 33% CDA 6% KOM 48% Free bilateral agreements 0,1% Forced-mode regime 12% Expensive generation 1% +11% Regulated agreements 19% Free market 81%

Total electricity sales in the wholesale market - 67.6 TWh

+15%

RUB/MW/month 1H2012 1H2013 Change, %

Regulated agreements

120 260 118 694

• 1,3%

CDA

462 442 713 065 +54,2%

КОМ

120 024 138 379 +15,3%

Forced-mode regime

159 817 166 614 +4,3%

Expensive generation

134 594 154 497 +14,8%

Free bilateral agreements

130 117 116 313

• 10,6%

19

1.2 +1.3 2.6

2 4 6 8 10 12 14

1H2012 1H2013 9,7

Electricity Spot Prices in 1H2013⁽¹⁾ Electricity Export Breakdown in 1H2013 Comments

Export Import

International Activity

€/MWh Nord Pool 2nd price zone 1st price zone Balt Pool (x%) Percentage change yoy

2.6 TWh (+111%) 9.9 TWh (+2%)

 In 1H2013 Inter RAO exported about 9.9 TWh of electricity. Finland, Lithuania, Belarus and China accounted for over 80% of electricity exported  Electricity export to Kazakhstan reduced by 28% (yoy) due to lower fluctuations in concurrent operation of national energy systems, and also due to marginal slowdown of commercial sales  Electricity export to Lithuania decreased by 20% (yoy) due to electricity price increase in the Russian Wholesale Electricity and Capacity Market  Electricity export volumes to China in 1H2013 doubled as a result of demand growth in accordance with current long-term agreement  Aggregate import of electricity for reported period reached 2.6 TWh due to threefold growth of electricity imports from Kazakhstan Export/Import Volumes

Import Export

TWh

Export Import

(1) Electricity prices in EUR are based on the following average exchange rate for 1H2013: EUR/RUB = 40.76

Finland 24% Belarus 22% Lithuania 20% China 19% Kazakhstan 9% Others 6% Kazakhstan 86% Georgia 10% Others 4%

+14.3%

12.4 10.9

TWh

+5% +9% +11% +15% #% Price change yoy

23 24 24 24 24 26 18 19 19 19 18 17 42 39 45 44 37 39 44 43 46 45 43 55 10 20 30 40 50 60

January Ferbuary March April May June +0.2 9.9

20

• 2. IFRS Financial Results 1H 2013

21

55 580 85 297 8 123 16 971 15000 30000 45000 60000 75000 90000 1H2012 1H2013 27% 73%

Key Segments: Generation

Contribution to Group for 1H2013 Revenue and EBITDA EBITDA Contribution by Company

7 265 + 5 549 12 814 858 + 854 1 712 + 2 445 2 445

2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000

EBITDA 1H2012 EBITDA 1H2013 Inter RAO – Electricity Generation TGК-11 Bashkir Generation

(1) Excludes inter-segment revenue RUB 9 835 m for 1H2012 and RUB 13 980 m for 1H2013 (2) Excludes financial results of Bashkir Generation, that is recognized from the date of acquisition – November 2012

71% 29% Generation Other RUB m RUB m. Revenue EBITDA EBITDA margin

14.6% 19.9%

Revenue Contribution by Product⁽¹⁾

7 661 +7 911 15 572 34 210 + 13 585 47 795 12 888 + 7 235 20 123 821 + 986 1 807

10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000

Revenue 1H2012 Revenue 1H2013 Electricity Capacity Heat Other RUB m Organic growth⁽²⁾

Revenue EBITDA

55 580 85 297 8 123 16 971

22

9% 91%

Key Segments: Trading

Trading Other

Contribution to Group Results for 1H2013 Revenue and EBITDA Revenue Contribution by Geography⁽¹⁾

21 669 25 126

2 724 2 051

10000 20000 30000 1H2012 1H2013 RUB m Revenue EBITDA EBITDA margin 8% 92%

Revenue EBITDA

(1) Excludes inter-segment revenue RUB 657 m for the 1H2012 and RUB 658 m for the 1H2013; (2) Includes Georgia, South Ossetia, Azerbaijan, Mongolia, Ukraine, Latvia and Estonia

12.6% 8.2%

4 819 + 1 836 6 655

3 667 +924 4 591 3 554

• 565

2 989 3 934 +325 4 259 1 472 +1 542 3 014 1 682

• 331

1 351 2 541

• 274

2 267 Revenue 1H2012 Revenue 1H2013 Kazkhstan Russian Federation Other RUB m

(²)

Finland Lithuania Belarus China

21 669 25 126

23

104 311 + 13 170 117 481 31 611 + 2 129 33 740 19 094 + 2 796 21 890 19 102

• 724

18 378 Revenue 1H2012 Revenue 1H2013

Key Segments: Supply

Supply Other

Contribution to Group results for 1H2013 Revenue and EBITDA Revenue Contribution by Company ⁽¹⁾ EBITDA Contribution by Company

RUB m Revenue EBITDA EBITDA margin 60% 40% 9% 91% RUB m

(1) Excludes inter-segmentе revenue RUB 75 m for the 1H2012 and RUB 88 m for the 1H2013 (2) Includes Tambov Energy Retail Company, Saratovenergo, Altayenergosbyt, Inter RAO – Orlovskiy energosbyt, Industrial Energetics and RT-Energotrading (jointly controlled entity)

RUB m 174 118 191 489

4 627 2 102

50000 100000 150000 200000 1H2012 1H2013

2.7% 1.1%

MES PSK Other⁽²⁾ 1 632

• 1 150

482 1 024

• 612

412 1 010

• 182

828 961

• 581

380 EBITDA 1H2012 EBITDA 1H2013 MES PSK Other⁽²⁾ RN-Energo RN- Energo

Revenue EBITDA

174 118 191 489 4 627 2 102

24

10% 90% 1 827

• 45

1 782 558 +109 667 8 +6 14 EBITDA 1H2012 EBITDA 1H2013 Generation Distribution

Key Segments: Foreign Assets

Foreign assets Other

Contribution to Group for 1H2013 Revenue and EBITDA EBITDA Contribution by Business

10 519 15 678

2 393 2 463

3000 6000 9000 12000 15000 18000 1H2012 1H2013 RUB m 166 + 36 202 776

• 15

761 758

• 736

22 699 +290 989

• 6

+ 495 489 EBITDA 1H2013 EBITDA 1H2013

EBITDA Contribution by Geography

Kazakhstan Georgia Moldova Armenia Revenue EBITDA EBITDA margin 5% 95%

Note: Includes financial results of Trakya Elektrik from December 2012 (1) Includes EBITDA from trading and other operations.

22.7% 15.7%

RUB m RUB m Other⁽¹⁾ Turkey

Revenue EBITDA

2 393 2 463 2 393 2 463

25

76 576 + 29 905 106 481 171 024 + 21 344 192 368 20 380 + 4 169 24 549 9 652 + 6 978 16 630 1 644 + 2 286 3 930

• 6 591
• 6 283
• 12 874

OPEX 1H2012 OPEX 1H2013 104 848 + 14 527 119 375 73 468 + 7 255 80 723 41 135 + 23 169 64 304 15 630 + 3 189 18 819 37 604 + 10 259 47 863

70 000 140 000 210 000 280 000 350 000

OPEX 1H2012 OPEX 1H2013 Purchased electricity and capacity Electricity transmission fees Fuel expenses Other⁽¹⁾

OPEX Dynamics By Business Segments

RUB m

OPEX Dynamics By The Main Items

Generation Supply Trading Foreign Assets Other⁽²⁾

OPEX Breakdown Comments

 In 1H2013 Inter RAO Group’s operating expenses increased by RUB 58 399 m (+21%) in comparison with 1H2012  Key OPEX change drivers:  Fuel expenses increased by RUB 23 169 m (+56%) due to acquisition of Bashkir generation and Trakya Elektrik gas-fired power plant in Turkey at the end of 2012;  Purchased electricity and capacity costs increased by RUB 14 527 m (+14%) as a consequence of electricity consumption growth in the retail market and rise of export- import operations;  Electricity transmission costs increased by RUB 7 255 m (+10%) as a result of grid tariffs growth from 01.01.2013 and increase of electricity export to Finland and China Employee benefit expenses Purchased electricity and capacity 36% Electricity transmission fees 24% Fuel expenses 19% Employee benefit expenses 6% Other⁽¹⁾ 15%

Operating expenses of Inter RAО Group in 1H2012 demonstrated the same growth rate (+21% yoy) as consolidated revenue

Unallocated and eliminations

Consolidated Operating Expenses

(1) Includes D&A, impairments of PPE and accounts receivables and other operating expenses (2) Includes Engineering segment’s OPEX

RUB m

272 685 331 084 272 685 331 084

26

• 3. IFRS Financial Results 2012

27

RUB m

2012 2011 Change

Revenue 556 189 536 244 3,7% Adjusted EBITDA 26 493 41 657

• 36,4%

Adjusted EBIT 9 897 28 641

• 65,4%

Net (loss)/income

• 22 355

41 457

• Adjusted net profit ⁽³⁾

5 091 12 852

• 60.4%

FCF

• 41 822

24 113

• RUB m

31.12.2012 31.12.2011 Change

Total Assets 528 634 531 916

• 0,6%

Total Equity 353 838 390 657

• 9,4%

Adjusted Total Debt⁽¹⁾ 64 789 48 644 33,2% Adjusted Net Debt⁽²⁾ 10 630

• 33 541
• Note : Includes financial results of Bashkir Generation from the date of acquisition – November 2012 , and Trakya Elektrik – December 2012.

(1) Includes share in debt of jointly controlled entities RUB 5 378 m as at 31.12.2012 (RUB 672 m as at 31.12.2011) (2) Includes cash deposits (3-12 months) RUB 6 110 m as at 31.12.2012 (RUB 38 667 m as at 31.12.2011) and share in debt of jointly controlled entities of RUB 5 378 m as at 31.12.2012 (RUB 672 m as at 31.12.2011) (3) Adjusted net income – excludes provision and impairment (RUB 39 410 m for the year 2012, RUB 30 274 m for the year 2011), and effect of the eexcess of the acquired share in the fair value of the identifiable assets and liabilities over the cost of investment and gain from acquisition of available-for-sale financial assets and assets classified as held-for-sale, net (RUB 11 645 m for the year 2012 and RUB 44 652 m for the 2011) and revaluation of Associates (RUB 319 m for the year 2012 и RUB 14 227 m for the year 2011).

Financial Performance FY2012 (1/2)

28

17 993

• 2 633

15 360 5 260

• 864

4 396 16 907

• 10 613

6294 5 227

• 651

4 576

• 306

+149

• 157

EBITDA 2011 EBITDA 2012

98 016 +31 177 129 193 54 327

• 10 240

44 087 362 445

• 3 490

358 955 20 804 +2 033 22 837 652 +465 1 117 Revenue 2011 Revenue 2012

556,189 +3.7% 45,081

• 32.4%

Generation Trading Supply International Revenue bridge EBITDA bridge⁽¹⁾ Generation Trading Supply International

(1) Hereinafter EBITDA excludes unallocated and eliminations.

RUB m RUB m

EBITDA fall mainly in Generation and Supply segments Other Other 536,244 30,469

Financial Performance FY2012 (2/2)

29

48 644 64 789 47 972 59 411 20000 40000 60000 80000 As of 31.12.2011 As of 31.12.2012

Debt and Liquidity Analysis 2012

Debt Composition (as of 31.12.2012) Debt Maturity Profile ⁽¹⁾ Debt ratios evolution

By maturity By Currency

Short - term 25% Long - term 75%

Total Debt evolution ⁽²⁾

As of 31.12.2011 As of 31.12.2012 RUB 65 % USD 26% RUB m EUR 6% Other 3% RUB m 15 034 7 501 34 553 2 323 9000 18000 27000 36000 45000 Less than 1 year Between 1 and 2 years Between 2 and 5 years Over 5 years

(1) Including financial lease (2) Includes share in debt of jointly controlled entities in the amount of RUB 5 378 m as at 31.12.2012 (RUB 672 m as at 31.12.2011) (3) Includes cash deposits in the amount of RUB 6 110 m as at 31.12.2012 (As at 31.12.2011: RUB 38 667 m) and share in debt of jointly controlled entities in the amount of RUB 5 378 m as at 31.12.2012 (as at 31.12.2011: RUB 672 m);.

48 644

• 33 541

64 789 10 630

• 45000
• 30000
• 15000

15000 30000 45000 60000 75000 Adjusted Debt Adjusted Net debt

⁽²⁾ ⁽³⁾

млн. руб.

Includes share in jointly controlled entities Excludes Includes share in jointly controlled entities

1.17 2.45

Debt including share in jointly controlled entities/EBITDA

30

On Track to Deliver Strategy

STRATEGIC PRIORITIES

• Organic growth through construction of new electricity generation capacity in Russia

and M&A

• Selective expansion into target foreign markets through M&A, developing greenfield
• Raising efficiency of existing assets, getting new cash flow from Capacity Delivery

Agreements (CDA)

• Extending Geography & product line
• Increasing market share with independent suppliers

45 TWH 25%

TRADING VOLUME SUPPLY ARKET SHARE IN RUSSIA

€2.8 BN

CONSOLIDATED EBITDA

25%

INSTALLED CAPACITY ABROAD TOTAL INSTALLED CAPACITY

40 GW €23 BN

CONSOLIDATED REVENUE

250 TWH

ELECTRICITY SUPPLIED

Key Targets 2015E

31

IR Contacts

Irina Makarenko

Director for Investor Relations tel.: +7 (495) 664 88 40 (ext 2008) e-mail: makarenko_ia@interrao.ru

Larisa Sadovnikova

Investor Relations tel.: +7 (495) 664 88 40 (ext 2068) e-mail: sadovnikova_lv@interrao.ru

Alexander Smirnov

Investor Relations tel.: +7 (495) 664 88 40 (ext 2720) e-mail: smirnov_aa@interrao.ru For additional information please visit our website at: www.interrao.ru

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THANK YOU FOR YOUR ATTENTION!