Federal Grid Company

July 2011

Investor Presentation

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Disclaimer

The materials comprising this Presentation have been prepared by the Company solely for use by the Company’smanagement at investor meetings with a limited number of institutional investors who have agreed to attend suchmeetings and to be subject to obligations to maintain the confidentiality of this Presentation.

This Presentation does not constitute or form part of and should not be construed as, an offer to sell or issueor the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries in any jurisdictionor an inducement to enter into investment activity. No part of this Presentation, nor the fact of its distribution, should formthe basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.This Presentation does not constitute a recommendation regarding the securities of the Company.

This Presentation is not directed at, or intended for distribution to or use by, any person or entity that is a citizenor resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availabilityor use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

The forward-looking statements in this Presentation are based upon various assumptions, many of which are based,in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends,data contained in the Company’s records and other data available from third parties. These assumptions are inherentlysubject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its controland it may not achieve or accomplish these expectations, beliefs or projections. In addition, important factors that, in theview of the Company, could cause actual results to differ materially from those discussed in the forward-lookingstatements include the achievement of the anticipated levels of profitability, growth, cost and its recent acquisitions,the timely development of new projects, the impact of competitive pricing, the ability to obtain necessary regulatoryapprovals, and the impact of general business and global economic conditions. Past performance should not be taken asan indication or guarantee of future results, and no representation or warranty, express or implied, is made regardingfuture performance.

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Key messages

The largest publicly traded electricity

transmission company in the world by the length

of transmission lines and transformer capacity

A leading Russian blue chip company and the

largest Russian utility company by market

capitalisation

Natural monopoly position on the Russia’s

high-voltage electricity transmission market

Guaranteed return on investment following

the transition to the Regulatory Asset Base

tariff system (RAB)

Strong development pipeline backed by a

five-year RUR 952.4 billion investment

programme

Considerable scope to enhance performance

through greater operational efficiency and

capital structure optimization

Market Cap: USD 17.2 bln (25th July, 2011)

Federal Grid at a glance

Russian Federation: 79.48%

Free Float: 20.52%

Shareholders Structure:

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Regions of operations

Key Indicators 2010 2009

Revenues, RUR mln 113,330 87,580

Adj. EBITDA*, RUR mln 67,717 42 ,619

Adj. profit for the period*, RUR mln 27,910 17,160

Total volumes of electricity transmitted, bln kWh 486 466

*exclusive of the effect of impairment, revaluation of fixed assets and other non-cash items

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Russian Electricity Sector

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Regulatory bodies

Ministry of Economic Development

Ministry of Energy:Investment program approval

Federal Tariff Service (FTS):Tariff setting

Russian Electricity Sector

Generation

Transmission

Distribution Sales

Federal Grid

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Federal Grid Business

Electricity transmission Technological connection

Federal Grid is the backbone of Russia’s national electricity sector and a natural monopoly operating

in 73 regions of the country

Primary consumers are regional distribution companies, retail electricity supply and large industrial

enterprises

Federal Grid’s share in the electricity prices paid by the end-consumers is approximately 6%

Revenues are based on the tariff set by Federal Tariff Service (FTS) for 5 years using RAB

methodology

Income generated from electricity transmission makes up approximately 94% of the total revenue

Costs of electricity losses are passed on to consumers

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Strategy

The transmission electricity grid is a backbone of the national economy and infrastructure. Federal Grid plays a vital role in ensuring the development and reliability of this system. We operate in a modern, regulated market environment, and are committed to delivering value to our shareholders and investors.

MISSION

Upgrading existing facilities, further improving equipment reliability

Reduction of energy loss in transmission system through the introduction of energy efficient technologies

Reliability and efficiency

Balanced 2010-2014 Investment Program approved by the Government and Federal Grid Board of Directors

Introduction of Intelligent Electricity Grid and other innovative technologies Development and innovations

Ensuring high occupational and consumer safety standards

Introducing new environmental protection technologies and carefully managing related risks

Safety

Commitment to international Best Practice of corporate governance

4 independent directors in the Board of Directors. Audit Committee entirely comprised of independent directors

Focus on the development of the human capital

Corporate Governance

and Personnel

Transition to RAB tariff system and improvement in operating efficiency

Strong balance sheet, robust financial performance

The adopted Dividend Policy commits the company to paying dividends on profit

Shareholder Value

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Investment Program 2010 – 2014

Total amount of planned investments 2010-2014 is RUR952.4 bln

Grid upgrades under

Federal Programs(2)

(4,808 km; 4,181 MVA)

Upgrading grid facilities in

Moscow, St. Petersburg,

Tyumen

(980 km; 17,531 MVA)

Long-haul grids development(3)

(5,367 km; 10,890 MVA)

Innovations and energy

efficiency, technological

operations improvement

Renewal of fixed assets

(10,468 km; 37,866 MVA)

Technological connection

(33 km; 2,577 MVA)

Other grid development

projects

Joint projects with regional

authorities(1)

(5,367 km; 10,890 MVA)

Capacity provision

(NPP, HPP, TPP)

(5,180 km; 10,936 MVA)

(1) Excluding Moscow, St. Petersburg, Tyumen

(2) East Siberia – Pacific Ocean oil pipeline, Sochi Olympic Games, Vankor, Sayan, etc.

(3) Excluding joint projects with regional authorities

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127.4 (13.4%)

90.4 (9.5%)

212.8 (22.3%)

65.8 (6.9%)

216.3 (22.7%)

14.7 (1.5%)28.4 (3.0%)

58.7 (6.2%)

137.9 (14.5%)

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Key Investment Projects

Transmission lines (220KV, 330KV, 500KV, 750KV)

Transmission lines and substations

Underground cabling

Capacity provision of

Boguchanskaya HPP start-up

complex (1,000 MW)

Commissioning date – 2012

Infrastructure for Sochi

Olympic Games 2014

Commissioning date – 2012

Capacity provision of Kalininskaya

NPP generating unit #4 (1,000 MW)

Commissioning date – 2011

Electricity supply of East

Siberia – Pacific Ocean oil

pipeline

Commissioning date – 2012

Construction of Zeyskaya

HPP – Russian-Chinese

border transmission line

Commissioning date – 2013

Infrastructure for APEC

summit in Vladivostok in

2012

Commissioning date – 2011

Construction of electricity

supply facilities on

Elginskoye coal deposit

Commissioning date – 2013

Underground cabling in Moscow, St. Petersburg

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Transition from overhead

lines to cable and

construction of Skolkovo

220 KV substation

Commissioning date – 2012

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Investment Program: 2010-2014

New Construction

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2010 2011 2012

26,557

13,047

22,474

5,435

3,293

3,521

Transmission lines, km

Transformer capacity, MVA

New construction 2010 – 2014

2013 2014

19,000

5,893

8,1022,936

73 new substations with a total transformer capacity of 89,180 MVA

123 new high-voltage transmission lines with a total length of 21,078 km

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Transition to RAB

201051.1%

tariff growth

Return on initial

invested capital: 3.9%

Return on initial

invested capital: 5.2%Return on initial

invested capital: 6.5%

Return on new invested capital:

11% per annum

*approved by the Government of Russian Federation

** 32.91% for 1st quarter, 26.4% for 2-4 quarters

Source : Federal Tariff Service

5-year regulatory period*

Return on initial

invested capital: 7.8%

Return on new invested capital:

10% per annum

Return on initial

invested capital: 9.1%

2011**26.4%

tariff growth

2012

26.4%

tariff growth

201326.3%

tariff growth

201426.3%

tariff growth

Initial base of invested capital as of 01.01.2010 (Initial RAB) was RUR 647.6 bln

Annual regulatory rate of decrease in operating costs controlled by FTS is 2%

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Financial Performance (FY 2009 – 2010)

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Indicator 2009 2010

Adjusted operating profit margin,% 15.6% 26.4%

Adjusted EBITDA margin,% 48.7% 59.8%

Adjusted profit for the period margin,% 19.6% 24.6%

Key profitability ratios

P&L indicators, RUR mln87,580

42,619

13,65117,160

113,330

67,717

29,941 27,910

Revenue Adjusted EBITDA Adjusted operating profit Adjusted profit for the period

2009 2010

29.4%

58.9%

62.6%119.3%

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Credit potential (July 26st, 2011)

Total amount of untapped credit lines – RUR 65 bln

28.04.2011 Federal Grid Board of Directors made a

decision on bonds issuing in an amount up to RUR 125 bln

2009 2008 2007 2006 2005 2004

BBB BB+ BB+ B+ B+ B

Baa2 Baa2 Baa2 Baa2

2010

BBB

Baa2

Bank Amount Duration

Alfa-bank RUR 15 bln until January 2013

Sberbank Russia RUR 15 bln until February 2012

Gazprombank RUR 25 bln until May 2018

Raiffeisen BANK RUR 10 bln until May 2016

Credit portfolio and liquidity

Bond Portfolio (July 26th, 2011)

Bond issue RUR mln Interest rate,% Maturity date

Series 4 6,000 7.3 06.10.2011

Series 6 10,000 7.15 26.09.2013

Series 7 5,000 7.5 27.10.2015

Series 8 10,000 7.15 26.09.2013

Series 9 5,000 7.99 24.10.2017

Series 10 10,000 7.75 24.09.2015

Series 11 10,000 7.99 24.10.2017

Series 13 10,000 8.5 22.06.2021

Series 19 20, 000 7.95 06.07. 2023

Total 86,000

Credit facilities

DEBT/EBITDA* = 1.1

*EBITDA 2011E = RUR 76 109 mln

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Summary

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Advanced Tariff Regulation System

RAB-based regulation enhances operational

efficiency and ensures predictable returns on

invested capital

Large Scale of Operations and Stable Demand

Critical part of the infrastructure of the Russian

economy and the backbone of the national

electricity sector

Sound Financial Position

Strong growth in revenue and earnings

coupled with balance sheet strength

Established Development Program

Large-scale investment program is expected to

stimulate a robust expansion of our business

and asset base

Maximization of shareholders value

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Contacts

Federal Grid Company of Unified Energy System

5A, Akademika Chelomeya Str., Moscow, Russia, 117630

Head of Investor Relations

Alexander Duzhinov

Head of Investor Relations

Tel.: +7 (495) 710 90 64

Mob.: +7 (916) 041 80 53

E-mail: ir@fsk-ees.ru

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