1. OGK-2 Group 2017FY IFRS Results
March 12, 2018

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
2016
2017
Change
Electricity Output, mn kWh
67,086
63,433
-5.4%
Effective Electricity Output Without Regard to Financial Operations, mn kWh
63,027
59,252
-6.0%
Useful Heat Output, thousand Gcal
6,355
6,452
+1.5%
Fuel Rate on Electricity, g/kWh
336.1
340.3
+1.2%
Fuel Rate on Heat, kg/Gcal
152.5
156.1
+2.4%
Installed Capacity Load Factor, %
40.8
38,1
-2.7 p.p.
2016
2017
Change
Revenue
134,398
141,308
+5.1%
Operating Expenses, incl.
(124,529)
(125,261)
+0.6%
Variable Costs2
(80,793)
(79,475)
-1.6%
Fixed Costs2
(34,202)
(34,521)
+0.9%
Depreciation and Amortization
(9,534)
(11,265)
+18.2%
Other Operating Income (Expense)
(480)
(495)
+3.1%
Operating Profit
9,389
15,551
x1.7
EBITDA3
18,923
26,816
+41.7%
Profit for the Period
3,053
7,201
x2.4
Total Comprehensive Income for the Period
3,051
7,055
x2.3
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
2017
Average electricity price at the free market, RUR/MWh
1,186.1
Average heat tariff, RUR/Gcal
789.2
Average price for new capacity,
RUR/MW per month
757,981.6
Average price for old capacity,
124,139.8
Electricity and Capacity Revenue Structure for 2017FY1
Structure of Electricity Sales Volume at the Wholesale Market for 2017FY1
1 Management report data

5. Variable Costs Variable Costs Change Factors
Variable Costs Structure, mn RUR
2016
2017
Change
Fuel Expenses
68,890
66,298
-3.8%
Purchased Heat and Electricity
11,645
12,966
+11.3%
Ecology Payments
258
211
-18.2%
Total Variable Costs
80,793
79,475
-1.6%
Growth of fuel expenses (gas) was due to output decrease.
Purchased electricity and capacity expenses growth accounted for increased purchase volumes and prices 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
-3.8%
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.
Increased maintenance and repair expenses were due to additional repair works at Ryazanskaya, Surgutskaya and Krasnoyarskaya stations, as well as additional service works at Adlerskaya and Serovskaya stations.
Lower other fixed costs resulted mostly from decrease of raw and other materials expenses at Adlerskaya station, on the back of lower service expenses for gas turbines.
2016
2017
Change
Employee Benefit
8,461
8,135
-3.9%
Maintenance and Repair Expenses
3,861
4,058
+5.1%
Fee of the System Operator
2,020
2,049
+1.4%
Taxes Other than Income Tax
2,866
3,665
+27.9%
Rent
2,368
2,613
+10.3%
Other Fixed Costs
14,626
14,001
-4.3%
Total Fixed Costs
34,202
34,521
+0.9%
Total Fixed Costs, mn RUR
Depreciation and Amortization, mn RUR
+0.9%
+18.2%

7. EBITDA and Profit EBITDA, mn RUR Profit Bridge for 2017FY, mn RUR
+41.7%

8. Debt Debt Structure, mn RUR
Debt Maturity Profile, as of December 31, 2017, mn RUR
Net Debt, mn RUR1
Net Debt/ EBITDA
3.30
2.02
-11.5%
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