Inter RAO Group: Engineering and supply of power equipment 2015

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EngineeringInternational PowerTradingPower GridsRetail Power Supply

• One of the major power grid companies in Georgia (JSC Telasi);• Over 500 000 ultimate customers;• Over 4,6 thousand km of power transmission lines.

• Framework of Russia’s electricity export and import operations;• Electricity export in 2014 - 14 billion kWh, import – 3.5 billion kWh.

• 14 built and upgraded power plant units in Russia and the CIS (6.7 GWh);• Current projects of HPP and TPP construction in South America (1231 MW);• Supply of power equipment and spare parts.

• 35 GW in seven countries;• 39 TPP, 9 small cogeneration plants;• 13 HPP, (including 9 small HPP);• 2 wind parks;• Power output in 2014: 146 billion kWh;• Heat output in 2014: 41.6 million Gcal.

• 12.5 million clients in 11 regions of Russia;• 15.9% of the Russian retail electricity market;• Retail power sales in the Baltic and Scandinavia;• Power supply of large enterprises.

• Energy audit and energy management;• Manufacturing of cutting-edge lighting systems;• Development of innovative technologies for thermal generation.

Revenues 19,3

EBITDA 1,5

Net profit 0,26

Power Generation R&D and Energy Efficiency

Company’s Overview Ownership Structure Financial Performance, IFRS 2014 Statements ($ bln.)

Inter RAO Group

• Diversified international energy holding, one of the major energy companies in Europe;

• About 60 thousand people employed;

• High priority for HSE policy. The environment management system is certified pursuant to ISO 14001:2004 standard;

• Inter RAO is listed on MICEX- RTS, and the company's Global Depositary Receipts (GDR) are admitted to trading on the London Stock Exchange's International Order Book (IOB).

Rosneftegaz Group – 27.63%

INTER RAO Capital - 19%

FGC UES Group – 18.5%

Minority shareholders – 16.68%

Norilsk Nickel – 13.21%

RusHydro Group - 4,92%

* Average exchange rate of USD to Ruble in 2014 was 38,42

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Омская ТЭЦ - 3

Tomskaya TPP-1. Construction of GTU, 15 MW. Launched in 2012.

Kharanorskaya TPP.Construction of a coal-fired unit, 225 MW. Launched in 2012.

Kaliningradskaya TPP-2. Construction of CCGT, 450 MW. Launched in 2011.

Gusinoozyorskaya TPP. Reconstruction of a coal-fired unit, 210 MW. Launched in 2013.

Omskaya TPP-3.Construction of CCGT 85 MW. Launched in 2013.

Ivanovo CCGT. Construction of CCGT, 325 MW. Launched in 2012.

Urengoyskaya TPP. Construction of CCGT, 460 MW. Launched in 2012.

Sochi TPP.Construction of CCGT, 80 MW. Launched in 2009

Dzhubginskaya TPP. Construction of two GTU, 210 MW. Launched in 2013.

2 530 MW of new and upgraded facilities to be launched in 2015-2017

Reference list of Inter RAO engineering projects in Russia and the CIS

Yuzhnouralskaya TPP-2. Construction of two CCGTs, 825 MW. Launched in 2013-2014.

Nizhnevartovskaya TPP. Construction of CCGT 413 MW. Launched in 2014.

Sangtuda HPP-1 (Tajikistan). 670 MW. Launched in 2008-2009

Cherepetskaya TPP. Construction of two coal-fired units, 450 MW. Launched in 2014-2015.

Major completed projects (4418 MW launched)

Year (total capacity) Plant Type Fuel Capacity,

MW

2015

(98 MW)

Omskaya TPP-5 (reconstruction of a

steam turbine) Modernization coal 98/18

2016

(996 MW)

CCGT TPP-5, Ufa (Construction of Units 1,

2New gas 456

Verkhnetagilskaya TPP (Unit 12)

New gas 420

Omskaya TPP-3 (replacement of a

turbine)Modernization gas 120

 2017

(1436 MW)

Permskaya TPP New gas 800

Ekibastuz TPP-2, Kazakhstan (Unit 3) New coal 636

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Инжиниринговые проекты Группы «Интер РАО» в России и СНГ

International Engineering Business Development

2009• Start of power equipment exports to Cuba

2010

• Signing of the contract for supply of 13 gas-turbine units to Venezuela (423 MW)

• Signing of the contract for construction of Toachi Pilatón hydro complex in Ecuador (253 MW)

2011• Incorporation of INTER RAO – Export, LLC (a specialized subsidiary within

Inter RAO Group)

2013• Signing of the contract for expansion of Termogas Machala TPP in Ecuador

(from 130 MW to 308 MW)

2014• INTER RAO – Export and a consortium of Argentine construction

companies win the tender for construction of Chihuido – I HPP in Argentina (637 MW)

2015• Signing of the contract for construction of 800 MW of thermal power

capacities in Cuba (one 200 MW-unit at Maximo Gomez TPP and three 200 MW-units at Este Habana TPP)

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INTER RAO – Export, LLC

Our services

• Supply of basic and auxiliary equipment;

• Equipment installation and commissioning;

• Power plant management, operation and maintenance;

• Service contracts;

• Project management (EPC/EPCM contracts);

• Single window for promotion of Inter RAO Group companies’ goods and services.

• Experienced management team with a large portfolio of completed projects;

• The growing portfolio of the company’s ongoing projects, cooperation with major regional energy companies;

• Experience in raising project funding and use of government support;

• Use of the best international management practice in line with ISO 9001 standard;

• Strong and trust-based professional relations with the governments and regulators in Russia and the countries of the business reach.

Our advantages

Our projects

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Supplies of miscellaneous equipment and spare parts

In 2009-2014 the Group fulfilled 22 contracts for power equipment supplies to Cuba.

The Customer: ENERGOIMPORT

Equipment:

• Equipment for boilers of thermal power plants;• Circulation pumps;• Supporting structures and accessories for

transmission lines;• Spare parts for equipment and auxiliary equipment

for Maximo Gomez TPP;• Spare parts for equipment and auxiliary equipment

for Este Habana TPP;• Spare parts and equipment for small hydropower

plants.

Inter RAO Group is fulfilling the contract for supplying of 13 gas-turbine units with total installed capacity of 423 MW to Venezuela.

The Customer: PDVSA

Equipment:

• 32.6 MW LM2500+G4 gas-turbine units (produced by GE; some of them are completed with generators TTK-37 manufactured by the Russian company NPO Privod);

• Under the order of INTER RAO – Export, LLC a new model of electric power generator has been created. It is compatible with GE gas turbine and designed for Venezuela’s power network which operates at 60 Hz.

Supplies to Cuba Supplies to Venezuela

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Toachi Pilatón hydro complex in Ecuador

Supply of electric power equipment for 253 MW Toachi Pilatón hydro power plants chain.

The Customer: State Company of Ecuador CELEC E.P.

The hydro complex structure:

• Alluriquín HPP, 204 MW (Alluriquín substation, Toachi dam)

• Sarapullo HPP, 48.9 MW (Sarapullo substation, Pilatón dam)

• Small HPP Toachi, 1.4 MW

Equipment:

• Hydro-power equipment (turbines, power generators, transformers);

• Hydromechanical equipment (spillway gates, cranes, intake screens, cleaning machines);

• Auxiliary equipment (electric and mechanical equipment);

• Equipment for 230 kV step up substations.

The Customer will finance the project using an export loan from Roseximbank extended against sovereign guarantees of the Republic of Ecuador.

For this project, the Customer signed an 11-year finance agreement worth $123.3 million with a banking syndicate including State Corporation Vnesheconombank, JSC Roseximbank, JSC Gazprombank, Gazprombank (Switzerland) Ltd. and Russian Commercial Bank (Cyprus) Ltd.

Project Profile Funding

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Expansion of Termogas Machala TPP in Ecuador

Project Profile Funding

The project includes expansion of the existing Termogas Machala thermal power plant by building a gas-turbine power generation unit and a steam turbine. As a result, Termogas Machala will be the first thermal power plant in Ecuador to operate in combined steam-gas cycle. Its installed capacity will increase from 130 MW to 308 MW.

The Customer: State Company of Ecuador CELEC E.P.

Equipment and works:

• Design, delivery, construction, installation and launch of an additional 6FA gas-turbine unit;

• Design, delivery, construction, installation and launch of a additional steam-turbine unit;

• Construction of additional transmission lines;

• Expansion of two existing substations on turnkey conditions.

The whole project is valued at approximately $230 million.

The Customer will finance the project using an export loan from Roseximbank extended against sovereign guarantees of the Republic of Ecuador.

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Construction of 800 MW in Cuba (four 200 MW-units)

Project Profile Funding

In October of 2015 INTER RAO – Export, LLC and the Cuban company Energoimport (forms a part of the State Power Company Union Electrica) signed the contract for construction of four 200-MW generating units at two operational power plants in Cuba: one at Maximo Gomez thermal power plant (town of Mariel) and three at Este Habana thermal power plant (town of Santa Cruz del Norte).

The Customer: State Cuban Company Energoimport

Equipment and works:

• EPC, organizational and management activities;

• Design of power equipment;

• Supply of the whole complex of principal and auxiliary equipment;

• Installation of equipment;

• Commissioning and launch of the facilities.

The whole project is valued at 1.2 bln. Euros.

The Customer will finance the project partially with own funds and also using an interstate export loan.

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Prospects for business development of INTE RAO – Export, LLC*

Latin America is the key market for the company.

The ongoing projects in Ecuador and Cuba will ensure growth of the installed capacity of the national energy systems in 11% and 14% respectively;

Inter RAO – Export is committed to growing its footprint in Latin America, thus the project portfolio of Inter RAO Group in the region is enlarged annually.

Latin America

Promising markets and new projects*

Inter RAO – Export works in a close coordination with the governments of a number of African countries in order to clear out a list of potential power projects in the region.

The most prospective African markets for the company are, in particular, South Africa, Ethiopia and Angola.

Africa

Promising markets and new projects* Ecuador: Construction of HPP, 194 MW Construction of HPP, 595 MWArgentina: Chihuido-I HPP, 637 MW

South-East Asia The region is one of the fastest-growing

markets in the world. Inter RAO group studies the possibilities

of participating in projects in several countries. The priority markets are Vietnam, Laos, India, Indonesia.

Ethiopia: Modernization of HPP, 157 MW Construction of HPP, 422 MW

The representative office of the company functions in Ecuador.

Venezuela: Construction and launch of 3

plants based on gas-turbine units.

Cuba: Reconstruction of 100 MW –

power unitMiddle East

The region is a traditional range of business interest for Russian power engineering companies.

Inter RAO Group studies projects in various countries in the region and is committed to active participation in tender procedures. * The funding for all the projects will be organized without the engagement of Inter

RAO Group’s financial resources.

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Energy Saving and Energy Efficiency

INTER RAO – Export LLC represents the interests of Inter RAO Group for promotion of the products manufactured by the companies of the Group to foreign markets.

Technological solutions for LED technologies elaborated on the base of JSC INTER RAO LED Systems (full cycle of production of LED sources).

Innovative technologies in the sphere of repair and restoration of power equipment, applied in the manufacturing facilities of INTER RAO – Coating Application Centre LLC.

Manufacturing of gas-turbine units 6FA with a unit capacity of 77 MW, by Russian Gas Turbines LLC which was established in 2011 as a joint venture between GE, Inter RAO and United Engine Corporation.

Solutions in the field of monitoring and dispatch of electric grid complex elaborated in joint cooperation with the INTER RAO Power Efficiency Centre basing on new generation intelligent devices (Smart Meter) which monitor the dispatch of electricity and heat.