JSC “OGK-6” 2009 Financial Results (IFRS) April, 2010
Financial results (IFRS) Financial Results Net profit reached 2,4 bln rubles EBITDA grew 2,5 times Operating expenses fell 14% with revenues practically staying at the level of г., mln. RUR 2008 г., mln. RUR change y.o.y. Revenues41,87042,275- 1% Operating expenses( 38,471 )( 44,688)- 14% Other operating income/ (expenses)32( 156 )- Operating profit/ (loss)3,432( 2,568 )- Profit / (loss) before income tax3,506( 2,097 )- Profit/ (loss) for the year2,442( 829 )- EBITDA*5,6482, % EBITDA margin13%13%6%6%7 п.п. Operating margin8%-1%9 п.п. Net margin6%-2%8 п.п. *EBITDA is calculated by the following formula: Net profit + Income tax – Tax benefit + Finance expenses – Finance income + Loss on disposal of property, plant and equipment + Impairment of inventories and property, plant and equipment= EBIT EBIT + Depreciation and amortization = EBITDA
Financial results (IFRS) Electricity and capacity sales Electricity sales in 2009 fell 21% to 33,998 mln kWh the volume of purchased electricity sales grew by 4% to mln kWh Capacity sales grew 0,6% to 9093 MW per month -21% +0,6%
Financial results (IFRS) Revenue Structure Revenues in 2009 decreased by 1% versus 2008 to 41,870 mln rubles Income from sales of electricity (63%) and capacity (31%) dominate the revenue structure. Sales of heat made up 5% of revenue mln. RUR Share in Revenues 2008 mln. RUR Share in Revenues Change y.o.y. Total Revenues41,870100%42,275100%-1% Electricity and Capacity Sales39,20594%39,87994%94%-2% Electricity Sales26,39263%29,02969%-9% Regulated contracts17,49442%16,74640%4% Day-ahead-market5,58513%9,79123%-43% Balancing market1,3973%1,5184%-8% Non-regulated bilateral contracts5791%00100% Retail market1,3383%9742%37% Capacity Sales12,81231%10,85026%18% Regulated contracts8,09819%9,35422%13% Competitive selection of capacity2,3776%9302%156% Non-regulated bilateral contracts on electricity and capacity 1,8474%2361%682% Retail market4901%3301%49% Heat Sales2,2235%2,0375%9% Other operating income4431%3601%23%
Financial results (IFRS) Operating Expenses Production cost decreased by 10% in comparison with 2008 amounting to 38,471 mln rubles The share of fuel costs in the overall production cost structure was 50% Fuel costs reduced in 2009 by 21% to 19,206 mln rubles as the result of the 25.5% reduction in electricity generation 2009 mln. RUR Share in expenses % 2008 mln. RUR Share in expenses % y.o.y. % Fuel Expenses19,20650%24,27254%-21% Gas11,20229%14,47632%-23% Coal7,66520%9,21721%-17% Fuel oil3401%5781%-41% Purchased heat and electricity4,71812%4,61910%2% Employee benefit expenses and payroll taxes3,75910%3,6028%4% Depreciation1,8675%2,8126%-34% Impairment of property, plant and equipment-0%1,9714%- Repairs and maintenance1,9034%1,8354% Other materials1,8775%1,5734%4%19% Water usage expenses8522%1,0852%-22% Energy market infrastructure cost7522%6401%18% Taxes6292%4371%44% Electricity transmission4461%3171%41% Loss on disposal of property, plant and equipment2071%790%164% Impairment of inventories1470%3 5651% (Reversal)/ origination of allowance for accounts receivable2261%-320%- Other 1,8825%1,4763%27% Total expenses38,471100%44,688100%-14%
Financial results (IFRS) Asset Structure 31 December 2009 mln. RUR 31 December 2008 mln. RUR. Change y.o.y. % Receivables and prepayments 4,8523,799 27,7% Including: Trade receivables2,8741, ,7% Allowance for impairment of trade receivables ,1% In the assets structure, the share of property, plant and equipment grew from 75% to 85%, and the share of current assets reduced from 19% to 13%. The impairment of trade receivables accounts for 7% of trade receivables +14%
Financial results (IFRS) Liabilities and equity The weighted average cost of borrowing was 8,45%. The 2009 resulted in a low Debt/ EBITDA ratio Amounted to 0, %
Financial results (IFRS) Investment activities Project Implement ation date Increase of capacity (MW) Expected project costs Financed Drawn on project (reported) To be financed “Addition of a gas turbine to steam turbine plant, GRES-24, Unit No. 1” (CCGT Unit квартал 2010 г. 1104,1893,6783, «Modernization of the condensing section of Kirishskaya GRES on the basis of combined cycle technology”, unit No. 6 (CCGT Unit-800) 4 квартал 2011 г ,01210,8887,8628,124 “Construction of Novocherkasskaya GRES Power Unit No. 9 using circulating fluidized bed technology”, Unit No. 9 (330 MW) 4 квартал 2013 г ,3085,1012,18119,207 “Construction of the second phase of Cherepovetskaya GRES with separation of the first startup facility” – Unit No. 4 (330 MW) (project may be amended) ,5372, Total for major investment projects69,04621,82913,63927,842 *On April 16, 2010 the Board of Directors of OGK-6 adopted changes to the Cherepovetskaya GRES project from a construction of a new coal-fired unit (330 MW) to the construction of a new gas-fried unit (420 MW)/ Data as atа in mln. RUR. Including VAT The total commissioning of new plant and equipment in 2009 amounted to 2,6 bln RUR Total OGK-6 Installed Capacity growth is expected to reach 1360 MW -5% Major Projects
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