iiiiii jsc inter rao ues. 2 content company profile i activities geography ii development prospects...
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www.interrao.ru
JSC INTER RAO UES
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Content
CompanyProfile
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Activities Geography
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Development Prospects
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www.interrao.ru
Company Profile
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JSC INTER RAO UES Is a Transnational Energy Holding Company
Affiliates more than 20 companies in 14 countriesof Europe and Asia
Controls a number of generating and distributing energy assets in Russia and abroad
Total personnel capacity — 17,000 people
Head-quarters — Moscow, Russian Federation
Dynamic investment activities
Leading positions in the sphereof electric energy export/import in Russia
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Positioning of JSC INTER RAO UES
as a transnational Russian energy Corporation
with ramous business in the sphere of investment
and energy-generating activities,
trading operations on the electric energy market
1. Strong positions on the electricpower markets of Europe and Asia
2. Positive dynamics of the operations volumes
3. Constant diversification of business
4. Highly professional and competent management
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Objective and Principles
ObjectiveObjective PrinciplesPrinciples
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Share Capital Structure
40%60%
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EnergyGenerationand Distribution
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EnergyGenerationand Distribution
AssetManagement
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AssetManagement
InvestmentActivities
1
Export-Import
2
Export-Import
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We Single Out 4 Core Areas of Business
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1. Company’s Targets
Steady business value increase
Stable and active presence on the target markets
Diversification of business
Result:Reorganization of the Company from the tradinginto a vertically-integrated holding with a wide scopeof functions in the sphere of the electric-powersupply industry
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EnergyGenerationand Distribution
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EnergyGenerationand Distribution
AssetManagement
3
AssetManagement
InvestmentActivities
1
Export-Import
2
9
Export-Import
2
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InvestmentActivities
1
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2. Electric Energy Export Structurein 2006
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Китай
MongoliaKazakhstan
Azerbaijan
Georgia
Moldova
Norway Finland
BelarusLatvia
Lithuania
54%
11% 9%
26%
7%
5%
4%3%3%
2%1%1%
China
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2. Electric Energy Import Structurein 2006
MongoliaKazakhstan
Azerbaijan
BelarusLatvia
Lithuania
72%
10%
Ukraine
9.8%
8.2% 6.3%
1%0.8%0.1%
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2. Export and Import Turnoverin 2004-2006, bln kWh
ChinaAzerbaijanGeorgia
Moldova
Norway Finland
BelarusLatvia
LithuaniaUkraine
10
2004 2005 2006
Export
Import
Kazakhstan Mongolia
10.010.5
20.9
10.1
20.5
5.1
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EnergyGenerationand Distribution
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EnergyGenerationand Distribution
AssetManagement
3
InvestmentActivities
1
Export-Import
2
13
Export-Import
2
4
AssetManagement
3
InvestmentActivities
1
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3. Asset Management
JSC INTER RAO UES
“Electric Networks of
Armenia” CJSC
JSC Severo-Zapadnaya
TETs
JSC InterRAO UES Balkans
JSC Stantsia Ekibastuzskaya
GRES-2
LLP INTER RAO Tsentralnaya
Asia
JSC INTER RAO UES Ukraine
JSC Armianskaya
Atomnaya Electrostantsia
TGR Enerji INTER-ENERGO B.V.
Techno-electrica S.R.L.
“Mtkvari Energy L.L.C.”
JSC Moldavskaya
GRES
Gardabani Holdings B.V.
Silk Road Holdings B.V.
ES Georgia Holdings B.V.
Saint Guidon Invest N.V.
“International Power
Corporation” CJSC
JSC Telasi
JSC Khramhesi I
JSC Khramhesi II
JSLLC Energospetservis-
obsluzhivanie
RAONORDIC OY
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EnergyGenerationand Distribution
4
AssetManagement
3
InvestmentActivities
1
Export-Import
2
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Export-Import
2
EnergyGenerationand Distribution
4
AssetManagement
3
InvestmentActivities
1
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4. JSC INTER RAO EUS Facilities’ Productive Energy Supply in 2006
20040
Bln kWh
2005 2006
1
2
3
Iriklinskaya GRESKaliningradskaya TETs-2
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4. Electric Energy Generationby the Holding Enterprises
20040
2005 2006
4
8
12
Bln kWh
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Today INTER RAO UESIs a Successfully Developing Company
The latest methods of corporate management and state-of-the-art technologies in the sphere of electric energy
Direct and indirect facilitation of the generating capacity build-up and the RF network infrastructure development
Participates in the investment projects implementation
Vital contribution to the international economic activity of Russia
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Activities Geography
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The Group’s Assets are Locatedin a Number of Countries of the World
Severo-Zapadnaya TETs
Kaliningradskaya TETs-2
Ivanovskiye PGU
Orel Region Branch
Finland
Moldova
Armenia
Georgia
Ukraine
Tadjikistan
Kazakhstan
Sochinskaya TES
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Russia:JSC Severo-Zapadnaya TETs
North-West region is the second in Russiain terms of power consumption rate of growth
In terms of technological development the station isthe most advanced in Russia
Installed capacity: 900 MW
Equity interest:25% + 1 share
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Russia:JSC Kaliningradskaya TETs-2
Strategic objective: no-break electric energy supply of the region and stability guarantee
Prospect — entrance to the market of Poland
Installed capacity:450 MW
Planned capacity:900 MW
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Russia:Ivanovskiye PGU
PGU’s* objectives:
New effective technologies development
Creation of spare capacity in the region
Energy and power shortage coverage in the region
Installed capacity:354,1 MW
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Equipped with the gas-steam power-generating units PGU-39:
the best technical-and-economic and ecological indicators in Russia
Own system of technologic process management
Installed capacity:78 MW
Annual output:565 mln kWh
Russia:JSC Sochinskaya TES
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Russia:Orel Region Branch
Was established in July, 2005
Serves an end of the Group’s business diversification
In 2006 was granted the status of the last resort provider
Generate 25%of the electric energy consumed in the region
Supply:
3,700 corporations
197,000 individuals
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CIS: KazakhstanStantsia Ekibastuzkaya GRES-2
Installed capacity: 1,000 MW(2 units, 500 MW each)
Equity interest: 50%
GRES interest amounts to 10-12%of the overall e/e capacity generatedin the republic
Prospect — increase in suppliesto Russia, e/e generation build-up, consolidation on the local market
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CIS: Tadzhikistan JSC Sangtudinskaya GES-1
Planned capacity:670 MW
Commercial operation —the year of 2009
Is being built on the Vakhsh River 200km away from Dushanbe:
the end of the 80s – the beginning of the 90s —the beginning of construction and its suspension
since 2005 — massive project financing(after negotiations between Russia and Tadzhikistan)
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Number of consumers: about 950,000
Among the largest enterprises of Armenia
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Capacity: 815 MW
Trust managementfor 5 years
The major consumer is the energy market of Armenia
Capacity: 560 MW
Equity interest: 100%
The cascade consists of 7 HPPs on the Razdan River
Sevano-Razdanskiy Cascadeof HPPs
Armenian nuclear power plant
The Company owns:
• 8,111 transforming substations
• 24,300 km of overhead transmission lines
• 5,300 km of cable transmission lines
CIS: Armenia“Electric Networks of Armenia” CJSC
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Installed capacity:2,520 MW
Unique station operating on three types of fuel
Important strategic location in the region
Prospect — supplies of electric energyto the countries of the Southern Europe
CIS: MoldovaMoldavskaya GRES
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5,658km — total length of power transmission lines
Supplies electric energy to more than410,000 consumers:
95% — population
3.7% — commercial sector
Capacity: 600 MW
The company ownsthe 9th and the 10th unitsof Tbilisskaya GRES
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CIS: Georgia
Capacity: 110 MW
Generated electric energy goes to JSC Telasifor realization
Khramhesi I and Khramhesi II Mtkvari Energy
JSC Telasi
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CIS: Ukraine
Activeon the Ukrainian market since September, 2000
Equity interest: 90%
Investment projects support implementation:
In the course of new energy complexes construction
In the course of the existing objects re-equipmentand reconstruction
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Finland: RAO Nordic OY
Trading operations onthe Scandinavian electric energy market since 2003
Equity interest: 100%
Among the largest enterprises of Finland
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Toward 2007, Activities Geography Has Embraced More Than 20 Countries of Europeand Asia and Is Steadily Expanding
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Since 2004 the Installed Capacityof the INTER RAO UES Group’s Power PlantsHas Increased Almost 3 Times
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2004
2005
2006
2,495MW
6,915MW
7,365MW
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And the Length of the Power Transmission Lines Has Increased More than 10 Times
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2004
2005
2006
3,100km
32,700km
32,700km
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1
ROS — Return on Sales Attained Its Maximum for 3 Years
2004 2005 2006
2
10.3%
12
22
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Return on sales, RUB blnRevenue, RUB blnROS
9.2%9.7%
3
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ROE Growing Steadily During the Last 3 Years,and Reaching the Level of 48.8% in 2006
2004 2005 2006
48.8%
45.3%
37.8%
Net profit, RUB blnEquity capital, RUB blnROE
0.61.0
1.7
1.5
2.2
3.6
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Development Prospects
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Development of new assets
Further penetration into target markets
Key Objectivesof JSC INTER RAO UES Are
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In Our Further Development We Are Guided to 5 Priority — Oriented Regions
Baltic states
Scandinavia
Central and Eastern Europe
The Black Sea region
Central Asia and the Far East
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2007
USD bln.
2015
1.25
2007 2015
11.2 times
Toward 2015 the Company’s Business ValueIs Planned to Be Increased up to USD 14 bln
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Core Lines of Development Strategy
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1. Occupy dominant positionon the target energy markets
2. Consolidate company at the expense of the generating assets
3. Acquire and construct new objectsof energy infrastructure
4. Attract foreign partnerswith the view to participate in investment projects
As a Result Toward 2015INTER RAO UES Is to Become:
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Mainly state vertically-integrated energy conglomerate:
With firm business standing
Actively and steadily represented on the target markets
Generating assets installed capacity will amount to ~ 30,000 MW
The value of the Company will comprise ~ USD 14,000,000,000
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Contact Information
7 Entrance, 12 Krasnopresnenskaya Nab., Moscow, 123610
Telephone: +7 (495) 967-05-27
Fax: +7 (495) 967-05-26
www.interrao.ru