Annual Report 2013

Milestones in 2013

MILESTONES IN 2013:

January IDGC of Centre received an energy certificate after completing a mandatory energy audit
February IDGC of Centre proceeded to operate as a supplier of last resort in the Bryansk, Orel and Kursk Regions by virtue of the resolution passed by the Russian Ministry of Energy
Standard & Poor`s agency increased the Company’s rating from “BB-“ to “BB” with a “Stable” outlook
March A new Grid Control Centre in Lipetsk, one of the most state-of-the-art divisions of the Company, was opened
April Oleg Isayev was approved as General Director of IDGC of Centre
The National Rating Agency increased the individual credit rating of IDGC of Centre from “АА-“ to “AA” (Very High Credit Quality, Level 2)
The first coupon payment on Series BO-01 traded certified interest-bearing non-convertible bearer bonds in the amount of 178.5 mln RUB was made.
May The Company proceeded to operate as a supplier of last resort in the Tver Region on the basis of the relevant resolution of the Russian Ministry of Energy
June The Annual Shareholders’ Meeting was held: the annual report was approved, the dividends were on common shares were announced, the new members of the Company’s Board of Directors were elected, and the Company’s auditor for 2013 was approved
The Federal Commercial Court of the Moscow District cancelled the ruling of the Moscow Commercial Court and the resolution of the Ninth Commercial Court of Appeal regarding the legal dispute with NLMK under the Last Mile contract
The Company prepared the issue of Series BO-02 – BO-6 bonds to the total amount of 25 bln RUB with a maturity period of 10 years
IDGC of Centre successfully passed the recertification audit and satisfied the requirements of the ISO: 9001:2008 international standard
July IDGC of Centre completed the construction and commissioned the 110 kV Novoselki substation in Yaroslavl
A Board of Service Consumers was created at IDGC of Centre – an expert body representing the interests of all consumer groups, public unions and business community associations
AugustThe Company confirmed the NRCG 7+ (Developed Corporate Governance Practices) national corporate governance rating
IDGC of Centre paid dividends on common shares for 2012 in the amount of 863 mln RUB, which constituted 25 % of the net profit under RAS
The Company proceeded to operate as a supplier of last resort in the Smolensk Region
OctoberIDGC of Centre received certification of preparedness for winter after successfully completing preparations for peak loads during fall-winter of 2013/2014
The second coupon payment on Series BO-01 traded certified interest-bearing non-convertible bearer bonds in the amount of 178.5 mln RUB was made
The first meeting in praesentia of the IDGC of Centre Board of Service Consumers was held
An open meeting of the Management Board of IDGC of Centre devoted to the issues of increasing energy efficiency was held
NovemberThe Company completed the reconstruction of the 110 kV Gorshechnoye substation – a strategic facility of the Kursk Region
Comprehensive reconstruction of the 35/10 kV Zadonsk-Selskaya substation was completed, the capacity of the substation increasing from 2.5 to 4 МVА
December Grid connection to the power grids of the Muchkapsky Seed Factory in the Tambov Region - a unique agricultural facility second to none in Russia - was completed

EVENTS AFTER THE REPORTING DATE:

February The first meeting of the regional Board of Consumers was held at IDGC of Centre
The functions of a supplier of last resort that the Company fulfilled in the Orel Region were transferred to its subsidiary JSC Inter RAO UES according to the resolution of the Russian Ministry of Energy
March The Company published its RAS financial statements for 2013: the sales volume grew by 22.3 %, energy losses decreased by 0.37 %
The IDGC of Centre management took part in the “Utilities Day” conference of ATON Investment Company
Standard & Poor`s rating agency amended IDGC of Centre’s credit rating outlook to “Negative” after amending the rating outlook for the Russian Federation
April The Company published its IFRS consolidated financial statements for 2013: the revenue grew by 33.3 %
Following the resolution of the Russian Ministry of Energy, IDGC of Centre passed the functions of a supplier of last resort in the Kursk and Tver Regions to JSC AtomEnergoSbyt