fy2012 key results (ras)
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2013TRANSCRIPT
FY2012 Key Results (RAS)
Disclaimer
This presentation is not an offer or invitation to make offers (advertisement) in respect of purchase or subscription to securities of Lenenergo. Neither the presentation, nor any part hereof, nor the fact of its representation or distribution serve as the basis for entering into any agreement or taking any investment decision; therefore, the presentation should not be relied upon in this respect. This presentation may contain estimates. The estimates are not based on actual circumstances and include statements in respect of the intentions, opinions or current expectations of JSC Lenenergo as regards the results of its activity, financial position, liquidity, prospects of growth, strategy and the industry, in which Lenenergo operates. Such estimates by their nature are characterized by presence of risks and uncertainty factors since they are related to the events and depend on the circumstances, which may fail to happen in the future. Lenenergo warns that the estimates are not a guarantee of the future parameters, and the actual results of Lenenergo activities, its financial position and liquidity, as well as development of the industry, in which it operates, may significantly differ from those included in the estimates contained herein. Besides, even if the results of the Company's activities, its financial position and liquidity, as well as the development of the industry, in which it operates, correspond to the estimates contained herein, such results and events are not indicative of the results and events in the future. This presentation contains the information received from third parties besides the official information on Lenenergo activities. This information has been received from the sources which are reliable in Lenenergo opinion. Nevertheless, we do not guarantee the accuracy of such information which may be reduced or incomplete. All opinions and estimates contained herein reflect our opinion as at the date of publication and are subject to change without notice. Lenenergo does not bear liability for the consequences of use of the opinions or estimates contained herein, or information incompleteness. Lenenergo does not undertake obligations in respect of revision or confirmation of the estimates and evaluations, as well as in respect of updating of the information contained herein.
General Information on the Company
LENENERGO is the largest electricity distribution grid company (the operator of 0,4-110 kV networks), servicing the territory of Saint-Petersburg and the Leningrad region. It is a natural monopoly, which tariffs are set by the regulating authorities - Federal Tariff Service (FTS) and regional regulators
Main types of activity: • electricity transmission & distribution • technological connection of new customers to networks
The share of Lenenergo on the electricity transmission market as of
31.12.2012 - 70,3 %
Service area: St.-Petersburg and the Leningrad region
Main competitors: in St.-Petersburg - JSC SPbES, in the Leningrad region - JSC LOESK
Assets
Service area
87,3 thousand km
Population of the region
6,2 mln people
Unit 2010 2011 2012
Installed capacity MVA 20 741 21 427 21 952
0,4-110 kV OTL (on circuit) Km 39 419 39 783 40 053
0,4-110 kV (on line) Km 36 274 36 587 36 859
0,4-110 kV cable lines Km 18 622 19 554 20 400
35-110 kV substations pcs
(MVA)
372
(13 466)
373 (13 742)
377 (13 969)
6-35 kV transformer substations pcs
(MVA)
14 361
(7 275)
14 770 (7 686)
15 025 (7 983)
* MCap is calculated based on the weighted average price at the MICEX SE
Unit 31.12.2012
Productive electricity supply mln kWh 30 007
Connected capacity MW 523
Revenue RUB mln 36 273
EBITDA RUB mln 10 221
Net profit RUB mln 1 234
CAPEX RUB mln 14 891
MCap* as of 25.03.2013 RUB mln 7 926
Personnel people 6007
Key indicators
RAS_2012FY | 1
53,41%
26,57%
7,15%
2,24% 3,60% 1,49%
5,54%
JSC IDGC Holding
St.-Petersburg (CPMC)
JSC IDGC of Ural
ENERGYO SOLUTIONS RUSSIA LIMITED (EOS Russia)
RUSENERGO FUND LIMITED
JP Morgan Funds
others
PRODUCTION UNITS (ELECTRICITY TRANSMISSION)
JSC Lenenergo
CJSC Tsarskoselskaya Energy Company (96,95%)*
CJSC Kurortenergo (98,13%)*
CJSC Lenenergospetsremont (100%)*
Subsidiaries BRANCHES
Share Capital and Organizational Structure
* – from the authorized capital
electricity transmission and technological connection services
design and construction work in power supply
Management of objects under construction
Service branch
JSC Energy Service Company Lenenergo (100%)*
energy services, services of energy saving and energy efficiency
JSC IDGC Holding The city of St.-Petersburg (CPMC) Minority shareholders
Russian Federation
53,41% (+ 7,15% - share of JSC IDGC of Ural) 26,57% 12,87% Vyborg power networks Gatchina power networks Kingisepp power networks St-Petersburg high-voltage power networks Novaya Ladoga power networks Suburban power networks Tikhvin power networks Cable network
** as of the last closing date of the shareholders register: 06.06.2012 considering the additional issue of ordinary shares in 2102 and the purchase of shares by IDGC of Ural
Share capital structure of Lenenergo**, % from ordinary shares
Authorized capital 1 228 325 624,08
Ordinary shares* 1 135 061 313,08
Preferred shares 93 264 311
Authorized capital of Lenenergo, pcs. (RUB)
Organizational Structure of Lenenergo
* In 2012, the authorized capital was increased by placing of 209 039 634,04 additional ordinary shares
RAS_2012FY | 2
JSC Energouchet (40%)* manufacture, installation and repair of energy resources gauges
High voltage grids (FSK) LENENERGO
Third-party grid organizations (TGOs)
Electricity trading companies
End users Generation
wholesale electricity market
Major TGOs in the region: in SPb – JSC SPbES, in LR – JSC LOESK
• Independent electricity trading companies • Guaranteeing suppliers: JSC PSK, LLC RSK-Energo,
LLC Rusenergosbyt, LLC Energy Holding • Direct consumers – participants of wholesale and
retail electricity markets
Payment of losses in Lenenergo networks
TGK-1, OGK-6, NW GRES, LAES, etc.
Consolidated revenue system*
electricity fee purchase of electricity
electricity transmission
fee
electricity transmission fee
electricity
electricity electricity
0,4-110 kV grids 0,4-10 kV grids > 220 kV grids
electricity
Business Model of Lenenergo: Cash Flows and Electric Power Flows
*RGR of TGOs and RGR of FSK comprise RGR of Lenenergo
Transmission services
Distribution grid company
electricity transmission fee
Market share of TGOs
.
.
.
Branch of FSK UES – MES of North-West
Wholesale electricity market
34%
RAS_2012FY | 3
0
5
10
15
20
25
30
35
0,00
500,00
1000,00
1500,00
2000,00
2500,00
3000,00
3500,00
4000,00
MICEX MICEX PWR average АО ЛЭ
Securities in 2012 Against the Background of Investor Distrust Due to the Uncertainty of Tariff Regulation
31.12.2011 31.12.2012 ∆,% MICEX, p.p. 1402,23 1474,72 5,2% MICEX PWR, p.p. 2053,02 1707,42 -16,8%
LSNG (MICEX), RUB 9,84 6,603 -32,9%
LSNGP (MICEX), RUB 21,74 17,63 -18,9%
Market capitalisation of Lenenergo, RUB mln*
Dynamics of MICEX, MICEX Power and shares of Lenenergo in 2012
Year Dividends on
ordinary shares, RUB per 1 share
Dividends on preferred shares, RUB per 1 share
Accrued dividends, RUB thousand
for 2009 no 3,4933 325 804
for 2010 no 4,0804 380 559
for 2011 no 1,5198 141 742
** In accordance with the Charter of JSC Lenenergo dividends are accrued on preferred shares of A-type in the amount of 10% of the net profit for the financial year ended
MCap*, RUB mln 2010 2011 2012 2012/2011, %
MICEX SE 27 372 11 139 7 759 -30,3%
Dividend payments**
* MCap is calculated based on the weighted average price at the MICEX SE at the end of the period
RUB p.p. Shares of Lenenergo
Quotation List
MICEX SE B
Tickers
Ordinary shares LSNG
Preferred shares LSNGP
12 266 12 373 11 836 10 982 8 227 7 705 7 049 7 080 8 132 7 871 7 931 7 759
янв.12 фев.12 мар.12 апр.12 май.12 июн.12 июл.12 авг.12 сен.12 окт.12 ноя.12 дек.12
RAS_2012FY | 4
2010 2011
EPS (ordinary shares) 3,70 1,38
P/E (ordinary shares) 7,02 7,14
Payout ratio, % (preferred shares) 10,00% 10,00%
Dividend yield, % (preferred shares) at the end of the year 11,39% 6,99%
Key indicators on shares
average OS
01/12 02/12 03/12 04/12 05/12 06/12 07/12 08/12 09/12 10/12 11/12 12/12
Key results of the Company in 2012
Indicator Unit 31.12.2011 31.12.2012 Δ in %
2012/2011
Productive electricity supply mln kWh 28 975 30 007 3,6%
Electricity losses % 10,60% 10,37% -0,23 p.p.
Connected capacity MW 321 523 63,1%
Revenue, including: RUB mln 37 009 36 273 -2,0%
- electricity transmission RUB mln 28 526 28 816 1,0%
- grid connections RUB mln 8 311 7 282 -12,4%
- other activity RUB mln 172 175 1,7%
Cost RUB mln 31 758 32 830 3,4%
Gross profit RUB mln 5 252 3 443 -34,4%
Profit before tax RUB mln 2 361 2 154 -8,8%
Net profit RUB mln 1 417 1 234 -12,9%
For reference:
ROE % 2,54% 2,08% -0,46 p.p.
EBITDA RUB mln 8 630 10 221 18,4%
EBITDA margin % 23,32% 28,18% 4,86 p.p.
Net debt*/EBITDA - 2,34 2,19 -
Investment program
(disbursement) RUB mln 15 061 14 891 -1,1%
* Net debt is calculated as total borrowings (including debt on interest %) minus cash assets and short-term investments
CAPEX, RUB mln
EBITDA, RUB mln
Electricity losses, %
Costs, RUB mln Revenue, RUB mln
20 828 26 088
34 201 37 009 36 273
2008 2009 2010 2011 2012
17680 20815 27 488 31 758 32 830
2008 2009 2010 2011 2012
10,8 10,3 10,7 10,6 10,4
2008 2009 2010 2011 2012
5 566 8 190
10 356 8 630
10 221
2008 2009 2010 2011 2012
1 540
3 258 3 806
1 417 1 234
2008 2009 2010 2011 2012
Net profit, RUB mln
11 409 10 334
15 813 15 061 14 891
2008 2009 2010 2011 2012
Dynamics of key indicators for the 5 recent years
RAS_2012FY | 5
37 009
31 758
5 252 1 417
36 273 32 830
3 443 1 234
Выручка от реализации
Себестоимость Пприбыль от реализации
Чистая прибыль
2011 2012
8 630 10 221
2011 2012
-4 560 -6 573
6 418 6 494
-440
1 313
от прочей пром. деятельности
от услуг по ТП
от услуг по передаче э/э
36 273
3 443 2 154 1 234
Выручка от реализации
Пприбыль от реализации
Прибыль до налогообложения
Чистая прибыль
Formation of Financial Result in 2011 – 2012
-2% +3% -34 % -13%
+ 18 %
Formation of sales profit and net profit, RUB mln EBITDA, Rub mln
EBITDA margin, %
23% 28%
EBITDA 10 221 100%
Depreciation of fixed assets and intangible assets
6 278 12,1%
Interest payable 1 788 17,5%
Profit tax 920 9,0%
Net profit 1 234 61,4% - =
1 417 1 234 - 13%
Net profit by types of activity, RUB mln
Cost of sales
1 288 920
32 830
Balance of other incomes -
expenses
Profit tax
Formation of net profit in 2012, RUB mln
Net profit margin
3,4%
Net profit in 2012 is formed mainly due to income from the identified non-metered and non-contractual electricity consumption
Despite the decline in sales profit in 2012, net profit remained approximately at the level of 2011, EBITDA and EBITDA margin showed significant growth
Gross profit margin
9,5%
2011 2012
RAS_2012FY | 6
from other activities from grid connections from electricity transmission
Sales revenue Sales profit Profit before tax Net profit
Sales revenue Cost of sales Sales profit Net profit
30 456 32 344
1 226 400
2011 2012
по передаче э/э по ТП
28 526 28 816
8 311 7 282
2011 2012
от передачи э/э от ТП
Formation of Revenue and Prime Cost in 2011 – 2012
37 009 36 273
77,1 %
22,5% 20,1%
79,4%
Revenue by types of activity*, RUB mln
-2%
Prime cost by types of activity*, RUB mln
31 758 32 830 +3%
95,9%
3,9%
98,5%
1,2%
Structure of prime cost, RUB mln Dynamics of the prime cost structure, RUB mln
27 488 31 758 32 830 Indicator 2011 2012 Δ in %
2012/2011
Controllable expenses 5 488 5 857 7%
Materials 413 469 14%
Production work and services 1 014 1 218 20%
Payroll 2 693 2 790 4%
Other expenses 1 369 1 380 1%
Non-controllable expenses 26 270 26 973 3%
Purchased power for compensation of losses 5 357 4 754 -11% Services of TGOs 7 969 8 029 1%
Services of FSK 5 686 6 119 8%
Depreciation of fixed assets and intangible assets 5 102 6 278 23%
Lease payments 1 187 803 -32%
Other expenses 969 990 2%
Total expenses 31 758 32 830 3%
16,1%
46,8%
10,7%
19,1% 7,2%
4 885 5 488 5 857
22 602 26 270 26 973
2010 2011 2012
Подконтрольные затраты Неподконтрольные затраты
Structure of prime cost in 2012
+12% +7%
+16% +3%
Other expenses
Depreciation
Payroll, social
charges
Production work and services
Materials
RAS_2012FY | 7
from electricity transmission
from grid connections
from electricity transmission
from grid connections
* Including other activities the amount of revenue and costs of which is less than 1% of the total sum
Controllable expenses Non-controllable expenses
11%
11%
5%
42%
16%
15% облигационный займ серии 04
Банк ВТБ
Связь-Банк
Сбербанк России
АБ Россия
Внешэкономбанк
Credit Portfolio and Debt Position at the End of 2012
31.12.2011 31.12.2012 Δ in %
31.12.2012/ 31.12.2011
Equity capital 56 195 76 417 36%
Liabilities, including: 51 584 55 323 7%
Long-term borrowings 23 785 28 220 19%
Short-term borrowings 27 799 27 103 -3%
Equity to liabilities 1,09 1,38 -
Leverage 32,5% 26,7% -5,8 p.p.
Capital structure, RUB mln
Debt position, RUB mln
Borrowings flow in 2012, RUB mln
* Net debt is calculated as the sum of credits and loans (including the debt on accrued but not paid interest) minus cash assets and short-term financial investments
31.12.2011 31.12.2012 Δ in %
31.12.2012/ 31.12.2011
Net debt at the end of the period* 20 197 22 360 11%
Net debt/EBITDA 2,34 2,19 -
26 800
11 238 10 393
27 645
Кредитный портфель на 31.12.2011г.
Привлечение (выборка)
Погашение Кредитный портфель на 31.12.2012г.
- + 89 % -
long-term borrowings
Parameters of the bonded loan of Series 04
RU000A0JS785
Volume RUB 3 bn
Rate, % 8,5 %
Date of placement 24.04.2012
Maturity date 1 820th day
Term of the offer 3 years
Circulation period 5 years
11 564 14 405
20 197 22 360
1,4 1,4
2,3 2,2
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
4,00
4,50
5,00
0
5 000
10 000
15 000
20 000
25 000
2009 2010 2011 2012
Net Debt Net Debt/EBITDA
Agency Rating Assigned
Moody’s Ba2
(outlook – stable) Nov. 2009
Moody’s Interfax Rating Agency (rating on the national scale
Aa2.ru
(outlook - stable) Nov. 2009
Credit Rating
Confirmed in Jan. 2013
Structure of credit portfolio at the end of 2012
Average rate
8,26%
Net Debt/EBITDA
RAS_2012FY | 8
Credit portfolio as
of 31.12.2011
Credit portfolio as
of 31.12.2012
Attraction Maturity
Bonded loan of Series 04
VTB Bank
Svyaz-Bank
Sberbank of Russia
AB Russia
Vnesheconombank
Implementation of the Investment Program of Lenenergo in 2012
CAPEX in 2012 totaled RUB 14 891 mln, that is RUB 170 mln, or 1% lower than in 2011 (RUB 15 061 mln)
CAPEX in 2010-2012, RUB mln, VAT not included
Parameters of the investment program, RUB mln
Indicator
St.-Petersburg Leningrad region Lenenergo
2011 2012 Δ in %
2012/2011 2011 2012
Δ in % 2012/2011
2011 2012 Δ in %
2012/2011
Disbursement, RUR mln, VAT not included
10 829 11 515 6% 4 232 3 376 -20% 15 061 14 891 -1%
Commissioning of FA, RUR mln 11 246 12 424 10% 5 077 3 651 -28% 16 323 16 075 -2%
Commissioning of capacity, MVA 623 1 409 126% 373 502 35% 996 1 911 92%
Commissioning of capacity, km 935 716 -23% 778 864 11% 1 713 1 581 -8%
CAPEX, RUB mln 15 813 15 061 14 891 Indicator 2011 2012
Δ in % 2012/ 2011
Investment program, total 15 061 14 891 -1%
Depreciation 5 133 2 935 -43%
Additional issues, including loans attracted for additional issues
- 1 292 -
Payments by property 1 289
Lost income 1 917 184 -90%
Bank credits 4 207 6 702 59%
TC prepayments 3 804 2 489 -35%
Funding sources of CAPEX in 2011-2012, RUB mln (VAT not included)
20%
9%
9% 1%
41%
21%
TC prepayments
Bank credits
Depreciation
Additional issue of shares
Payments by property
Lost income
932
996
1 911
1 507
1 713
1 581
Commissioning of capacity
MVA km
2012
2011
2010
4 503 6 753 5 297
10 377 8 223
8 557
933 85 1 037
2010 2011 2012
ТПиР
Новое строительство
Прочие RAS_2012FY | 9
Re-equipment & reconstruction
New construction
Other
RF Government Decree of 29.12.2011 #1178 on the fundamentals of pricing (revised RF Government
Decree of 30.06.2012 #663)
Goal: the creation of funding sources of the investment program, allowing for executing accrued liabilities under grid connections and increasing the reliability of the electric grid complex of the region
Tariff Decisions for Electricity Transmission
Limitations of tariff decisions for 2013-2017
RF Government Decree of 29.12.2011 #1178 on the fundamentals of pricing
Tariff rates in 1H – at the level of the end of 2011 Tariff rates in 2H – considering 11% growth
Implying regulation for Lenenergo
Limitations of tariff decisions for 2012
Average annual growth rate in 2013-2017:
In SPB – no more 17,5% In LR – no more 14%
2012
approved 2012 fact
∆ in % from 2012
approved fact
St.-Petersburg
Revenues*, RUB mln 19 050 16 954 -11%
Tariff, cop./kWh 98,7 88,7 -10%
Leningrad region
Revenues*, RUB mln 12 953 12 577 -3%
Tariff, cop./kWh 117,1 112,9 -4%
• Bylaw of the Tariff Committee of St.-Petersburg of 20.12.2011 #499-r (revised #105-r of 14.05.2012) • Order of LenRTC of 27.12.2011 #227-p (revised #87-p of 13.07.2012, #115-p of 28.09.2012, #126-p of 30.10.2012)
Formation of actual revenue from electricity transmission in 2012
* Without deduction of load losses
RAS_2012FY | 10
The main reasons for the decrease of the actual tariff rates relative to the approved ones:
unequal distribution by quarters of the year of the volumes of the declared capacity in the contracts with trading companies;
selection by the trading companies to calculate the most profitable type of tariff (one-rate / two-rate), while the tariff decisions are taken on the basis of calculations of all consumers by one type of tariff. The greatest deviation of revenues is in St.- Petersburg, where in making the tariff decisions the declared capacity of LLC Energy Holding was understated, whereas the declared capacity of JSC PSK was overstated, thereby these companies respectively selected two-rate (Energy Holding) and one-rate (PSK) tariffs;
a different structure of productive electricity supply by voltage levels prevailing upon 2012 as compared to the structure approved by the regulator;
consumption by the customer of generated voltage LLC KINEF in the Leningrad region, which was not accounted for when making tariff decisions
Indicator Leningrad region St.-Petersburg Total Lenenergo
Loss on electricity transmission, included by regulators through smoothing -2 393 -2 737 -5 130
Deviation of actual expenses from those considered in the tariff model -14 -1 429 -1 443
Total actual loss on electricity transmission -2 407 -4 166 -6 573
Given the limitations of tariff growth in 2012 a loss on electricity transmission is included in the tariff model through the use of smoothing (which will be compensated in subsequent years):
RUB mln
Formation of RGR and Factors of Forming Losses in Electricity Transmission in 2012
Own funds for investment and
expenses from profit
LR 2 656
SPB -2 737
Loss on electricity transmission, included
by regulators
LR -2 393
SPB 4 584
Interest on loans, expenses from profit
LR 1101
SPB 1 886
Smoothing
LR 2 055
SPB 1 369
Own funds for investment
LR -500
SPB 1 329
Depreciation
LR 1 893
SPB 4 066
- - - = =
Indicator Unit 2012
St.-Petersburg Leningrad region Controllable expenses RUB thousand 2 883 268 2 541 166 Non-controllable expenses RUB thousand 12 952 052 9 810 419 services of FSK RUB thousand 4 529 830 2 236 393 services of TGOs RUB thousand 3 396 238 4 762 948 losses in Lenenergo networks RUB thousand 3 850 655 2 296 303 Other non-controllable expenses RUB thousand 1 175 329 514 776 Recovery of the capital RUB thousand 3 089 704 2 066 775 Return on the capital RUB thousand 1 494 066 589 389 Smoothing RUB thousand -1 369 168 -2 055 024 Total required gross revenue RUB thousand 19 049 923 12 952 727
Productive electricity supply Mln kWh 19 295 11 059 Average tariff for electricity transmission Cop./kWh 987,3 1 171,3 Growth to the previous year % -0,2% 6,0%
Excess of expenses in the business plan is mainly due to increase in depreciation on revaluation of fixed assets as of 01.01 2012
Growth of loss in the business plan is associated with the redistribution of power between the PSK and Energy Holding and the selection of tariff
RAS_2012FY | 11
33 460
4 485
28 975
34 513
4 506
30 007
Отпуск в сеть Общие потери в сетях Полезный отпуск
2011 2012
28 439 27 672
29 095 28 975
30 007
2008 2009 2010 2011 2012
Services on Electricity Transmission in 2012
+3,1% +3,6% +0,5%
Dynamics of productive supply, mln kwh
Dynamics of losses in the networks of Lenenergo, mln kWh, %
In accordance with the approved program of energy saving and energy efficiency of Lenenergo for 2012-2017 target energy losses
by the end of 2017 is expected at 9,21% to supply to the grid
The result of measures to reduce
electricity losses in 2012
Decrease in losses,
mln kWh
Decrease in technical losses 13,4
Decrease in commercial losses 116,1
The economic effect of implementing the
program to reduce losses in 2012 RUB 170 mln
- = 3 503
3 274
3 587 3 546 3 578
10,8
10,3 10,7 10,6
10,4
10
11
12
3 100
3 150
3 200
3 250
3 300
3 350
3 400
3 450
3 500
3 550
3 600
3 650
2008 2009 2010 2011 2012
0,38% from
supply to the grid
Structure of electricity supply to the grid in 2012 by groups of customers
29,0%
2,3% 1,2%
14,5%
0,4% 19,8%
32,7%
Промышленные потребители
Транспорт
Сел. хоз-во и пищ. пром.
Непромышленные потребители
Бюджетные потребители
Население
ТСО
Dynamics of indicators for electricity transmission in 2011-2012, mln kwh
RAS_2012FY | 12
Supply to grid Total losses in networks Productive supply
Industrial customers
Transport
Agriculture and food industry
Non-industrial customers
Budget organizations
Population
TGO
Services on Grid Connections in 2012
+ 77%
Conclusion and execution of contracts for grid connection in 2011-2012., MW (pieces)
+63%
The share of property contracts in revenues has steadily decreased: from 63% in 2010 to 25% in 2012
Revenue from TC, RUB mln
7 282 On current contracts (term of service after
01.01.2012)
on expired contracts (term of service before
01.01.2012)
4 315
2 967
59%
41%
on cash contracts
on property contracts
5 428 75%
1 854 25%
+ +
=
485 MW
321 MW
861 MW
523 MW
заключено договоров закрыто договоров
2011 2012
6 302 pcs
14 561 pcs
20 159 pcs
6 949 pcs
Indicator 2010 2011 2012 Δ in %
2012/2011
Revenues, RUB mln 10 164 8 311 7 282 -12%
Connected capacity, MW 645 321 523 63%
Average rate on
contracts, RUB/MW 15 751 25 919 13 933 -46%
Dynamics of revenues and average rate on contracts for grid connection
Formation of revenues from grid connections in 2012
In 2012, there was an increase in the number of applications received in relation to 2011 by 50%, the growth of the declared capacity - by 27%. The group of applicants up to 15 kW was 89,4% of the total number of applications with a share of 9.4% of the total declared capacity111
По сроку оказания По способу оплаты by the term of services By payment method
14 688 19 870
29 832
2010 2011 2012
Dynamics of applications for grid connection, pieces (WM)
2270 2306
2934
RAS_2012FY | 13
Contracts concluded Contracts closed
JSC IDGC Holding and the Administration of St. Petersburg exercised their pre-emptive right to acquire shares in proportion to the existing stake in the ordinary shares of Lenenergo.
End use of funds - renovation program of 6-110 kV cable network in St. Petersburg
Results of the issue
Shareholder Volume of purchase,
RUB Volume of purchase,
pieces
Share from ordinary shares
after the placement, %
JSC IDGC Holding 2 043 433 581,28 140 345 713 53,41
St.-Petersburg (CPMC) 999 999 072,8 68 681 255 26,57
Other shareholders 184 417,58 12 666,04 20,02
The offering price – RUB 14,56 is defined as the weighted average price of one ordinary share upon trading results at the MICEX Stock Exchange for 3 months from 08.07.2011 to 07.10.2011
53,41%
26,57%
20,02%
Subject of the Russian Federation –
the city of St.-Petersburg (CPMC)
Date of state registration of the report on the issue results: 18.09.2012
209 039 634,04 shares is placed for a total amount of RUB 3 043 617 072
Share from ordinary shares after the placement, %
Payment procedure: JSC IDGC Holding introduced cash funds in payment for the shares , and the Administration of St.-Petersburg introduces the property.
JSC IDGC Holding Other
Annex: Results of the Additional Issue of Ordinary Shares in 2012
RAS_2012FY | 14
Annex: Tariff Models, Approved by Regional Regulators for 2012-2017
and Agreed by FTS of Russia
2012 2013 2014 2015 2016 2017
Saint-Petersburg Grown of average tariff from joint operations 3,2% 17,5% 14,1% 11,4% 10,1% 10,0% Investment program 10,0 9,6 9,0 9,1 8,3 8,2
Including from electricity transmission tariff 4,4 5,0 5,8 6,3 6,9 7,5 Loans payable at end of the year 15,7 16,6 17,2 16,8 15,2 12,4 Debt/EBITDA on transmission 4,9 2,6 2,2 1,7 1,3 0,9 Net profit -2,7 -0,5 0,2 1,3 2,5 3,9
Leningrad region Grown of average tariff from joint operations 6,0% 13,0% 12,9% 12,7% 12,1% 12,0% Investment program 3,4 4,8 5,3 5.8 3,2 3,3
Including from electricity transmission tariff 2,5 3,3 4,4 4,7 2,8 3,1 Loans payable at end of the year 10,6 12,2 14,0 15,1 11,2 6,0 Debt/EBITDA on transmission 17,6 4,0 3,1 2,5 1,3 0,5 Net profit -2,4 -0,4 0,5 1,2 3,3 5,3
RUB bln
• Excess of tariff growth rates for electricity transmission over the forecast of social and economic development in 2013-2017 pursuant to the RG Government Decree of 30.06.12 #663
• Increase in the approved investment program for the Leningrad region of the costs for grid connection of privileged applicants in the amount of RUB 6 bn in 2013-2015 is made in accordance with p. 32 and p.87 of the Fundamentals of pricing approved by the RG Government Decree of 29.12.11 #1178, to avoid a direct impact on the growth of tariff
Tariff projection is formed with the following conditions:
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CONTACTS
JSC Lenenergo 196247, Russia, Saint-Petersburg, Constitution Sq., 1 Head of Department for Corporate Governance and Shareholders Relationship Andrey Smolnikov Tel./ fax +7 (812) 595 31 76 [email protected]
Investor Relations Ulyana Davydova Tel. +7 (812) 494 39 06 Fax +7 (812) 494 37 34 [email protected] [email protected]
www.lenenergo.ru