TGC-1 9М 2018 IFRS Results 9 November, 2018

Disclaimer TGC-1 9М 2018 IFRS Results The information contained herein has been prepared using information available to Public Joint Stock Company “Territorial generating company №1” (hereinafter - TGC-1 or the Company) at the time of preparation of the presentation. Since making a presentation on the activities of TGC-1 and the content of the presentation could affect the external or other factors. In addition all relevant information about TGC-1 may not be included in this presentation. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information. Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve risk and uncertainty. TGC-1 cautions that actual results may differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Report for a description of the major risk factors. This presentation 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 shares in TGC-1, 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. TGC-1 9М 2018 IFRS Results

Operational and Financial Highlights for 9M 2018 Operational Highlights Financial Highlights, RUB mln 9M 2017 9M 2018 Change Installed Capacity, MW 6,950 0.0% Electricity Production, mn kWh, Including: 20,884 21,555 +3.2% CHPP 10,731 11,380 +6.0% HPP 10,153 10,176 +0.2% Electricity Sales Including Purchased Energy, mln kWh 23,138 23,989 +3.7% Capacity Sales, MW (monthly average) 5,313 5,461 +2.8% Heat Output, thous Gcal 16,576 16,435 -0.9% Useful Heat Output Including Purchased Energy, thous Gcal 16,914 16,824 -0.5% Fuel Rate on Electricity*, g/kWh 216.2 219.6 +1.6% Fuel Rate on Heat*, kg/Gcal 170.0 168.6 -0.8% Capacity Load Factor, %* 45.9 47.4 +1.5 p.p. 40.1 42.5 +2.4 p.p. 54.2 54.4 +0.2 p.p. 9M 2017 9M 2018 Change Revenue 60,176 63,494 +5.5% Operating Expenses, Incl.: (51,111) (54,088) +5.8% Variable Costs (30,828) (33,106) +7.4% Fixed Costs (14,126) (15,128) +7.1% Depreciation and Amortization (6,157) (5,854) -4.9% Total Operating Expenses** (50,293) (53,146) +5.7% Operating Profit 9,884 10,348 +4.7% Profit Before Income Tax 8,799 9,902 +12.5% EBITDA*** 16,040 16,202 +1.0% Profit for the Period 6,766 8,548 +26.3% Total Comprehensive Income for the Period * Without PJSC Murmanskaya CHPP. ** With account to Other operating income, Reversal of impairment loss for financial assets and Government subsidy. *** EBITDA = Operating profit + Depreciation of property, plant and equipment and Amortization of intangible assets and investment property TGC-1 9М 2018 IFRS Results

Dynamics of Sale Prices for Electricity at the Day-ahead Market TGC-1’s Regional Sale Prices for Electricity at the Day-ahead Market, RUB/MWh 13 CHPP 40 HPP Murmansk Oblast Karelia Murmansk Apatity Petrozavodsk Saint-Petersburg Leningrad Oblast 9M 2017 9M 2018 Kolsky Branch Karelsky Branch Nevsky Branch TGC-1 TGC-1 9М 2018 IFRS Results

TGC-1’s Sale Price for Electricity at the Day-ahead Market, RUB/MWh Dynamics of Prices for Electricity at the Day-ahead Market: CHPPs and HPPs TGC-1’s Sale Price for Electricity at the Day-ahead Market, RUB/MWh TGC-1 9М 2018 IFRS Results

Revenue Change Factors Prices and Tariffs*, RUB mln Revenue, RUB mln Revenue Structure* 9M 2017 9M 2018 Revenue Change Factors Prices and Tariffs*, RUB mln Growing sales volume at the day-ahead market in 1Q 2018 (+23.0%) and growing day-ahead electricity prices in 2Q 2018 (+4.6%); Increased CSA capacity sales volume (+6.7%) in 9M 2018; Revenue for exported electricity growth, resulting from elevated prices at Nord Pool market (+215.3%); Increased heat output in 1Q 2018, on the back of lower air temperature. 9M 2017 9M 2018 Change Average Electricity Price, thousand RUB/MWh 949.4 998.1 +5.1% Average New Capacity Price, RUB/MWh per Month 867,585.8 866,997.8 -0.1% Average Old Capacity Price RUB/MWh per Month 116,767.7 116,396.9 -0.3% * Management report data. TGC-1 9М 2018 IFRS Results

Fixed and Variable Costs Variable Costs, RUB mln Variable Costs Change Main Factors 9M 2017 9M 2018 Change Fuel 21,579 23,183 +7.4% Electricity, Capacity and Heat Purchases 5,037 5,453 +8.3% Water Usage Expenses 2,050 2,191 +6.9% Other Materials 649 652 +0.5% Heat Transmission 1,513 1,627 +7.5% Total Variable Costs 30,828 33,106 Growing fuel expenses on the back of increased by 6.0% electricity output at CHPPs; Increased expenses for electricity purchase, caused by growing electricity output; Growth in water usage expenses, resulting from water consumption by heating grid; Heat and electricity transmission cost growth on the account of new consumers connection in Leningrad Oblast. Fixed Costs, RUB mln Fixed Costs Change Main Factors 9M 2017 9M 2018 Change Employee Benefits 5,601 6,061 +8.2% Repairs and Maintenance 2,338 2,558 +9.4% Taxes Other than Income Tax 1,328 1,526 +14.9% Fees of Electricity Market Operators 615 635 +3.3% Rent Expenses 1,811 2,077 +14.7% Insurance Cost 215 219 +1.9% IT-service Cost 234 391 +67.1% Other 1,984 1,661 -16.3% Total Fixed Costs 14,126 15,128 +7.1% Growing rent expenses; Increased employee benefits on the account of salary indexation in 1H 2018; Growing IT-service cost, due to renovation of the Company information-management systems and enhancement of informational security; Increase of taxes other than income tax due to less property tax allowance used in St. Petersburg and growing property tax for grid assets. TGC-1 9М 2018 IFRS Results

Debt and Liabilities TGC-1 9М 2018 IFRS Results Debt Structure, RUB mln Net Debt*/ EBITDA Maturity Profile, as of 30 September, 2018, RUB mln Debt Portfolio Management Two bond issues series 03-04 of TGC-1 are traded on Moscow Exchange. Weighted average interest for TGC-1 debt portfolio for 9M 2018 amounted to 7.27%, 2.33 p.p. lower year-on-year. * Net debt = Total amount of borrowings less cash and cash equivalents TGC-1 9М 2018 IFRS Results

EBITDA and Profit Bridge EBITDA, RUB mln Profit Bridge for 9M 2018, RUB mln Profit Dynamics, RUB mln TGC-1 9М 2018 IFRS Results

Assigned Credit Ratings Credit Ratings by S&P Global Ratings Date Rating Type Rating Value 20.09.2018 International scale long-term rating «BBB-», forecast «stable» International scale short-term rating «A-3», forecast «stable» Credit Ratings by Fitch Ratings Date Rating Type Rating Value 11.09.2018 Foreign currency nominated long-term IDR «BBB-», forecast «stable» Domestic currency nominated long-term IDR Foreign currency nominated short-term IDR «F3» Domestic currency nominated short-term IDR Domestic currency nominated priority unsecured rating «BBB-» Credit rating ACRA Date Rating Type Rating Value 18.01.2018 National scale credit rating «AA(RU)», forecast «stable» TGC-1 9М 2018 IFRS Results

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