E.ON Russia Production management September 2013 Deputy General Director on production Igor Popov

Net installed capacity Net generation volume Availability KPI Efficiency Overview of key E.On Russia achievements Overview of 2012 technical KPI E.ON Russia vs. E.ON Europe and Russian energy system Content Overview of ERU Production activity Production capacities Actual running hours Organizational structure Organizational model Plan-Do-Monitoring-Analysis Integration into Fleet Overview of achievements Overview of results Energy market model – Why is UU crucial KPI for ERU? Costs covered by capacity tariff Capacity payment UU in the money

ERU Production capacities Москва Smolensk power plant Net capacity: power [MW] 3 х heat [MW] 77 Utilization*while available [%] 35,7 TRIF* 0,0 Commissioned Yaiva power plant Net capacity: power [MW] 4 х ,6 heat [MW] 83 Utilization while available [%] 70,7 TRIF 0,0 Commissioned / 2011 Moscow Bereza power plant Net capacity: power [MW] 2 х heat [MW] 938 Utilization while available [%] 75,9 TRIF 0,8 Commissioned Surgut-2 power plant Net capacity: power [MW] 6 х ,3 heat [MW] 977 Utilization while available [%] 81,3 TRIF 0,0 Commissioned / 2011 Key consumers are large power distribution companies and industrial enterprises ERU Net capacity: power [MW] heat [MW] Utilization while available [%] 70,9 TRIF 0,2 ~ km  ERU has the highest Efficiency and utilization among competitors  73% of capacities are located favorably in terms of fuel supply  Power plants are located in regions with consistent consumption increase Consumers Düsseldorf ~ km Shatura power plant Net capacity: power [MW] 3х186,4 + 2х195,7 +1х74, ,61 407,6 heat [MW] 284 Utilization while available [%] 39,6 TRIF 0,0 Commissioned / 2011 * Actual 2012 values

Actual running hours (ERU Steam)

Organizational structure Deputy General Director on Production Production & Technology division (5 employees) Maintenance & upgrade division (6 employees) CCGT division (5 employees) Health & Safety division (4 employees) Collection of operation plans, analysis and reports division (3 employees) Chief engineers of plants Directors of power plants Key responsibilities: Production & Technology division – keeping of an engineering policy, operational excellence, environment management Maintenance & upgrade division – development and execution of maintenance and refurbishment plans Health & Safety division – arrangement and keeping of a supervisory control over complying with HSE standards, technical rules, industrial and fire safety norms and requirements Collection of operation plans, analysis and reports division – accounting and deviation analysis of financial indicators of production plans CCGT division – operation and service of CCGT unit

Organizational model Production Assessment of actual equipment technical conditions Development & implementation of continuous reliability improvement projects Maintenance & upgrade management Tracking deviation vs. regulations requirements and unplanned unavailability Accounting and analysis of performance parameters Supervision and corrections operation modes Development and introducing of continuous fuel consumption efficiency improvement Budget management (operation, maintenance and upgrade) Benchmarking, best practices introducing Incidents record and report Incidents analysis and development for its decrease Actual assessment of infrastructure technical conditions Development & implementation of continuous improvement of infrastructure conditions Corporate standards and policies application UU TRIF, SIP, СО2 Efficiency, Fuel consumptio n KPI: Reliability KPI implementation Efficiency KPI implementationHSE & environment KPI implementation 1. Reliability 2.Efficiency 3. HSE

Planning Long-time planning of generating units maintenance and equipment replacement. 3-year planning of maintenance and replacement Annual planning of maintenance of auxiliary equipment Determination of works volume and MTP. Budgeting. Net graphs of generating units maintenance and upgrade execution Monthly scheduling and correction of work volumes Actual execution of maintenanc e & upgrade Scheduling of annual maintenance & upgrade activities Summary planning of materials needs.

Acting/monitoring Real-time production monitoring Tracking deviation vs. regulations requirements (chemical parameters, vibrations etc.) Expert estimate of units starts and shut downs by historical and on-line trends

Acting/monitoring. Dashboard for manager

Analysis. Efficiency, reliability

Overview of key E.ON Russia achievements 2 1 Sucessfull application for OHSAS 18001:2007. Certificate by BUREAU VERITAS 2 Target achievement TRIF=1.16 (Actual 2012=0,20) Target achievement E.ON Russia UU=1.88% (Actual 2012=1.24%) 3 CCGT-personnel preparation, Commissioning and commercial operation start of 3 new CCGT generation units Development of new CCGT-technology exploitation experience 4 Increase of installed capacity of Bereza power plant from 750 up to 800 MW 5 Registration of all new CCGT building projects as Joint Implementation projects in terms of Kyoto Agreement Transaction of the ERU (Emissions reduced units) for Service contract for Yaiva CCGT (Siemens equipment) unit up to the best E.ON practices 7 Integration into E.ON CCGT Fleet

Overview of E.ON Russia results GWh mln €

E.On Net generation capacity and Net generation volume CCGT Steam 13

Availability KPIs For information: Availability= (Net Generation Volume + MWh Available on Standby + MWh Not Running due to External Influence)*100%/Net MWh for Period UU (unplanned unavailability) = Net MWh Unplanned Unavailable*100%/Net MWh for Period PU (planned unavailability) = Net MWh Planned Unavailable*100%/Net MWh for Period 14

ERU place in Russian energy system 15

Capacity tariff and payment Generation volume Profit Fixed costs Variable costs UU=0% Full capacity payment Reduced capacity payment UU>0% Capacity tariff Maintenance costs Labour costs and insurance Amortization Materials costs (non- fuel) GRID- operator services Purchasing of electricity and heat energy Others Full capacity payment = N inst *Tariff Reduced capacity payment = (N inst – N UU )*Tariff = (1 – UU)*N inst *Tariff

Capacity tariff and payment

Integration into E.ON CCGTSteam Implemenation paper of ERU integration into E.ON Functional Fleet Management Inclusion into Steam fleet as previous GSC world Goals: 1.Experience accumulation and information exchange in terms of CCGT units operation, maintenance & service; 2.Application of modern approaches for CCGT operation, maintenance & service, support in exploitation activities; 3.Usage of benefits from integrated procurement and negotiating procedures (equipment and services) for CCGTs, as well as from mid-term ERU budget expert estimation by Gas-CCGT Fleet expertes. Examples: 1.Bridgehead appointment in E.ON UK 2.Work of E.ON UK employees at E.ON Russia power plants (Yaiva, Shatura, Surgut-2) 3.Benchmarking engagement Goals: 1. Best practices exchange 2. Benchmarking engagement 3. Mutual support when necessary Examples: 1.Quarter KPI-report in E.ON format 2.Annual benchmarking report and continuous improvement process engagement 3.Visit of power plants (f.e, while searching design for dry fly ash system for new Bereza unit 3) 4.Market model exchange (visit of Mr.Kudryavyi – the member of work team by Ministry of Energy) 5.Partner inspection in HSE area 18