1. OGK-2 Group 6M 2017 IFRS Results
August 28, 2017

2. Disclaimer
The information contained herein has been prepared using information available to JSC “OGK-2” (hereinafter - OGK-2 or the Company) at the time of preparation of the presentation. Since making a presentation, on the activities of OGK-2 and the content of the presentation could affect the external or other factors. In addition all relevant information about OGK-2 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. OGK-2 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 OGK-2, 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.

3. Operational and Financial Highlights
Operational Highlights1
Financial Highlights, mn RUR
6М 2016
6М 2017
Change
Electricity Output, mn kWh
31,179
32,633
+4.7%
Effective Electricity Output Without Regard to Financial Operations, mn kWh
29,278
30,513
+4.2%
Useful Heat Output, thousand Gcal
3,518
3,501
-0.5%
Fuel Rate on Electricity, g/kWh
336.8
336.4
-0.1%
Fuel Rate on Heat, kg/Gcal
152.9
155.5
+1.7%
Installed Capacity Load Factor, %
38.6
39.6
+1.0 p.p.
6М 2016
6М 2017
Change
Revenue
59,720
70,094
+17.4%
Operating Expenses, incl.
(54,982)
(58,336)
+6.1%
Variable Costs2
(36,425)
(39,258)
+7.8%
Fixed Costs2
(14,628)
(13,544)
-7.4%
Depreciation and Amortization
(3,929)
(5,534)
+40.9%
Other Operating Income (Expense)
(49)
(238)
x3.9
Operating Profit
4,689
11,519
+145.7%
EBITDA3
8,619
17,053
+97.9%
Profit/ Total Comprehensive Income for the Period
2,419
6,826
+182.2%
1 Management report data
2 Variable and fixed costs classification is based upon management report methodology
3 EBITDA = Operating profit + Depreciation and Amortization

4. Revenue Revenue Structure, bn RUR Prices and Tariffs1
6М 2017
Average electricity price at the free market, RUR/MWh
1,136.3
Average heat tariff, RUR/Gcal
780.4
Average price for new capacity,
RUR/MW per month
758,263.0
Average price for old capacity,
134,932.2  
Electricity and Capacity Revenue Structure for 6М 2017 г.1
Structure of Electricity Sales Volume at the Wholesale Market for 6М 20171
1 Management report data

5. Variable Costs Variable Costs Change Factors
Variable Costs Structure, mn RUR
6М 2016
6М 2017
Change
Fuel Expenses
30,826
33,189
+7.7%
Purchased Heat and Electricity
5,451
5,962
+9.4%
Ecology Payments
148
107
-27.7%
Total Variable Costs
36,425
39,258
+7.8%
Increase of fuel expenses was due to higher electricity production, as well as growing fuel prices.
Purchased electricity expenses growth accounted for increased purchase volumes at the wholesale market.
Lower ecology payments resulted mainly from decreased volume of extracted bottom ash waste at Troitskaya station.
Fuel Expenses, mn RUR
Fuel Consumption, thous. t
+7.7%
1 Management report data

6. Fixed Costs and Depreciation
Fixed Costs and Depreciation Change Factors
Fixed Costs Structure, mn RUR
Depreciation and amortization growth was due to commissioning under CSA at Troitskaya and Novocherkasskaya stations.
Rent expenses increase resulted from growing rent at Adlerskaya station.
Taxes grew mainly on the account of increased water payments at Stavropolskaya, Novocherkasskaya and Krasnoyarskaya-2 stations, on the back of increased production and tariff, as well as growing property tax, as a result of commissioning under CSA at Troitskaya station.
Decreased maintenance and repair expenses were due to lower service expenses for gas turbines at Adlerskaya station in 6M 2017.
Lower other fixed costs mostly resulted from decrease of raw and other materials expenses at Adlerskaya station, on the back of lower service expenses for gas turbines in 6M 2017.
6М 2016
6М 2017
Change
Employee Benefit
3,931
3,593
-8.6%
Maintenance and Repair Expenses
1,888
1,535
-18.7%
Fee of the System Operator
998
1,024
+2.6%
Taxes Other than Income Tax
1,549
1,795
+15.9%
Rent
1,161
1,381
+18.9%
Other Fixed Costs
5,101
4,216
-17.3%
Total Fixed Costs
14,628
13,544
-7.4%
Total Fixed Costs, mn RUR
Depreciation and Amortization, mn RUR
+40.9%
-7.4%

7. EBITDA and Profit EBITDA, mn RUR Profit Bridge for 6M 2017, mn RUR
+97.9%

8. Debt Debt Structure, mn RUR
Debt Maturity Profile, as of June 30, 2017, mn RUR
Net Debt, mn RUR1
Net Debt/ EBITDA
3.30
1.97
-15.0%
1 Net debt = Total amount of borrowings less cash and cash equivalents

9. Thank You For Your Attention!
IR contacts:
Natalya Grizel
Tel.: +7(495) , ext. 2416