Annual Report 2013

Key Indicators

FINANCIAL INDICATORS:

Indicator 2011 2012 2013Change
2013/2012, %
Revenues, bln RUB RAS 68.1 69.4 92.9 33.9 %
IFRS* 69.0 70.0 93.333.3 %
EBITDA, bln RUB RAS 13.7 12.3 11.5 – 6.3 %
IFRS 14.8 15.2 11.3– 25.6 %
Net profit, bln RUB RAS 5.2 3.5 0.3 – 91.4 %
IFRS 5.5 4.6 0.3– 94.2 %
Net asset value (as of December 31), bln RUB RAS 50.5 53.5 53.0 – 0.9 %
IFRS 38.6 42.6 41.8– 2.1 %
ROE, % RAS 10.3 6.4 0.6 – 5.8 ppt
IFRS 14.4 10.8 0.6– 10.2 ppt
Net profit margin, % RAS 7.6 5.0 0.3 – 4.7 ppt
IFRS 8.0 6.6 0.3– 6.3 ppt
EBITDA margin, % RAS 20.1 17.7 12.4 – 5.3 ppt
IFRS 21.4 21.8 12.1– 9.7 ppt
 

OPERATING INDICATORS:

Indicator 2011 2012 2013 Change
2013/2012, %
Productive supply (supply from the grid to consumers and co-operating TGC), bln kWh 56.7 57.9 57.8 –0.2 %
Energy losses, % 9.93 9.53 9.16 -0.37 ppt
Length of power lines along ROW, thous. km 371.7 385.3 388.5 0.8 %
Substation capacity, MVA*:        
35 — 110 kV 32,781.2 32,747.0 33,226.1 1.5 %
6 — 35/0,4 kV 16,113.4 16,775.3 17,486.4 4.2 %
Added capacity under grid connection agreements, MW 946.1 853.9 1,018.5 19.3 %
 

ADDITIONAL INFORMATION:

Indicator 2011 2012 2013 Change
2013/2012, %
Capitalization, bln RUB 25.2 24, 6 9.3 –62.2 %
Number of shareholders 14,413 14,267 14,189 –0.5 %
Staff listing on 31.12 30,977 30,333 32,721 7.9 %
 

IDGC CURRENTLY OPERATES 2:

2,344

Substations
35-110 kV

93,648

Transformer substations 6-10/0.4 kV and 6-10 kV distribution centers

375,252 km

Length of overhead lines
(along the ROW)

33,226 MVA

Total capacity of substations
35-110 kV

17,486 MVA

Total capacity of transformer substations 6-10/0.4 kV and 6-10 kV distribution centers

13,205 km

Length of cable lines

DESCRIPTION OF IDGC OF CENTRE BRANCHES AS OF DECEMBER 31, 2013:

Branch Length of power lines (ROW), thous km* Length of cables, thous km* Number of 110 kV and 35 kV substations* Substation capacity, MVA Productive supply, bn*Productive supply, bn kWhTransformer Substation volume, MWGrid connections, CAPEX, mln RUB
Belgorodenergo 42.1 6.7 178 7.311.1217.24,176
Bryanskenergo 25.1 0.1 143 3.13.938.4464
Voronezhenergo 51.2 0.2 294 6.48.0185.31,400
Kostromaenergo 23.9 1.5 165 3.22.545.7895
Kurskenergo 35.6 0.3 284 5.25.348.2949
Lipetskenergo 30.7 1.0 198 4.56.8131.51,768
Orelenergo 28.1 0.3 140 2.62.248.9572
Smolenskenergo 38.1 2.0 253 4.83.592.91,141
Tverenergo 26.6 0.1 207 3.52.948.7498
Tambovenergo 47.0 0.5 311 5.84.876.81,356
Yarenergo 26.8 0.5 171 4.37.085.01,206
 enlarge  

BENCHMARK OF IDGC OF CENTRE AND ITS DOMESTIC PEERS IN 2013:

2nd number

IDGC of Centre is the second by a number of indicators in the distribution grid sector

CAPITALIZATION
(31.12.2013), bln RUB:

TRADING VOLUME AT MOEX
(2013), mln RUB:

DIVIDENDS
(for 2012), mln RUB:

REVENUES UNDER RAS
(2013), bln RUB:

EBITDA* UNDER RAS
(2013), bln RUB:

RATINGS AND CERTIFICATES

BB “Stable” Outlook

In 2013, Standard&Poor’s rating agency upgraded the credit rating of IDGC of Centre by one point to “BB” with a “Stable” outlook.

S&P noted the Company’s strong reliability and stable financial standing for the long-term outlook. The key factors taken into account in the decision to upgrade the rating were:

  • Sufficient liquidity;
  • Acceptable debt burden;
  • The Company’s dominant position on the market in its areas of presence;
  • Stable cash flow on core activity;
  • Favorable debt redemption schedule.

The “Stable” outlook shows that the rating agency believes the Company will maintain a moderate debt burden and acceptable level of liquidity on a regular basis.3

The Company has recorded its credit rating history since 2009.


NRCG 7+

IDGC of Centre is one of the few companies of the sector to receive the NRCG 7+ (Developed Corporate Governance Practices) national corporate governance rating assigned by the Russian Institute of Directors.

Rating agency analysts assigned the NRCG 7+ rating based on all of the events, achievements, and positive aspects of the Company’s corporate management system:

  • Observance and strong protection of shareholder rights;
  • Equal representation of all shareholders in the Board of Directors, its independence from Company management and its expanded powers to participate in decisions regarding important transactions;
  • The Company’s clear information policy and high level of information disclosure;
  • The Company’s social responsibility and consideration of interests of related parties.

In 2013, IDGC of Centre confirmed its compliance with the ISO 9001:2008 standard after auditing its quality management system.

The British Standards Institution (BSI) analysts conducted a successful review of the Company’s core business processes, and its results allowed the Company to obtain a positive expert opinion.

IDGC OF CENTRE INVESTMENT HIGHLIGHTS IN 2013

IDGC of Centre is one of the leading companies in the power industry and is in the list of distribution grid companies with investment appeal. The key factors of the Company’s investment appeal are:

1Presence in 11 regions of Central Russia with steady economic growth potential
2Innovation leadership in the sector
3Stable financial position
4Approved dividend policy and favorable dividend history
5Corporate governance rating of NRCG 7+, the highest among domestic peers
6Standard & Poor's rating "BB" with a “Stable” outlook
7Development of additional energy services
8Extra revenue from fulfilling the functions of a supplier of last resort