Bank of America Merrill Lynch 2012 CalGEMs Global Emerging Markets - PowerPoint PPT Presentation

Investor Presentation Bank of America Merrill Lynch 2012 CalGEMs Global Emerging Markets One-on-One Conference June 2012

DISCLAIMER This document is confidential and has been prepared by JSC RusHydro (the “Company”) solely for use at the presentation and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any other purpose. This document 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 securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its presentation, communication or distribution form the basis of, or be relied on in connection with any contract or investment decision. These written materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities act of 1933, as amended. Any public offer or distribution of securities to be made in the United States will be made in accordance with a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. The Company has not registered and does not intend to register any portion of any offering in the United States or conduct a public offering of any securities in the United States. This presentation is only addressed to and directed at persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) ("Qualified Investors"). In addition, in the United Kingdom, this presentation is being distributed only to, and is directed only at, (i) Qualified Investors who have professional experience in matters relating to investments who fall within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") and Qualified Investors falling within Article 49(2)(a) to (d) of the Order, and (ii) Qualified Investors to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). This presentation must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, by persons who are not Qualified Investors. Any investment or investment activity to which this presentation relates is available only to (i) in the United Kingdom, relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, Qualified Investors, and will be engaged in only with such persons. The distribution of this presentation in other jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. No reliance may be placed for any purpose whatsoever on the information contained in this document or on assumptions made as to its completeness. No representation or warranty, express or implied, is given by the Company, its subsidiaries or any of their respective advisers, officers, employees or agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents. This document may include forward-looking statements. These forward-looking statements include matters that are not historical f acts or statements and reflect the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liq uidity, performance, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forwarding-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that the actual results of operations, financial condition and liquidity of the Company and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this document. In addition, even if the Company’s results of operations, financial condition and liquid ity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in future periods. The Company does not undertake any obligation to review or confirm expectations or estimates or to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation. By attending this presentation, you agree to be bound by the foregoing limitations. 2

RusHydro: the Leading Russian Utility & Renewables Player Russia’s largest genco and one of the world’s largest publicly traded hydro generation companies, with capacity of ca. 35 GW The biggest winner from electricity market liberalization in Russia due to extensive exposure to low-cost hydro generation Focus on improving efficiency of existing assets and successful completion of ongoing M&A deals The most liquid generation company of the Russian stock market, with average daily trading volume of more than USD 50mn Included in the MSCI Emerging Markets and MSCI Russia indices, with weights of 0.09% and 2.1%, respectively GDRs listed on the LSE, ADRs trading OTC and OTC QX in New York 3

RusHydro at a Glance (1): before acquisition of RAO ES of East Operating HPPs Tidal PPs Operating HPPs under reconstruction Wind PPs Installed capacity 26 GW Operating HPPs w/construction underway Energy retail companies Electricity generation (2011) HPPs under construction 77 TWh R&D institutes GeoPPs Average annual generation 79.7 TWh Kislogubskaya TPP Ust ’ -Srednekanskaya HPP, 570 М W Kolymskaya HPP, 900 М W Lengidroproekt Verkhne-Mutnovskaya GeoPP , 12 М W VNIIG Mutnovskaya GeoPP-1, 50 М W Zagorskaya PSHPP, 1200 MW Pauzhetskaya Geo PP 12 М W Cascade of Verkhnevolzhskiye HPPs, 457MW Zagorskaya PSHPP-2, 840 М W Nizhegorodskaya HPP, 520 MW Institute Hydroproject Ryazan Energy Trading Company NIIES Kamskaya HPP, 522 MW Cheboksarskaya HPP, 1370 MW Votkinskaya HPP, 1020 MW Saratovskaya HPP, 1360 MW Chuvash Energy Trading Company Kalmytskaya WPP Zhigulevskaya HPP , 2320 MW Boguchanskaya HPP, 3000 М W Cascade of the Kubanskiye HPPs, Zeiskaya HPP, 1330 М W Volzhskaya HPP 2582,5 М W 462,4 MW Krasnoyarsk Energy Trading Company Bureyskaya HPP, 2010 М W Karachaevo-Cherkessian branch , 160 М W Novosibirskaya HPP, 455 М W Zelenchugskiye Kabardino-Balkarian branch, 90,1 М W Krasnoyarskaya HPP, 6000 М W (25%) HPP, 320 М W North-Ossetian branch, 78,2 MW Sayano-Shushenskaya HPP, 6721 М W Kashkhatau HPP, Dagestan branch, 1381,8 М W (incl. Maynskaya HPP) 65,1 М W Irganaiskaya HPP, 400 М W Zaramagskiye HPPs, Armenia 352 М W Sevan-Hrazdan cascade, 561MW 4

Peer group comparison RusHydro is the largest listed hydropower generation company in the world and one of the largest generating companies in Russia RusHydro capacity vs. hydro capacities of global peers (GW) RusHydro in Russian electricity generation (GW) HydroQuebec 34 RusHydro 31.7* 34.8** Eletrobras 34 Gazprom 18.7* Enel 31 36.2 RusHydro 26 InterRAO 22,7* 28.5 EDF 23 20.4 Three Gorges 18 Rosenergoatom Eurosibenergo 15 19.5 EuroSibEnergo 11.2* Statkraft 13 Vattenfall 12 E.On Russia 10.3 Fuma CE 10 8.8 Enel OGK-5 Iderdrola 10 *- attributable capacity, i.e. amount of capacity on an equity-adjusted basis ** - incl. assets of RAO ES of the East RusHydro vs. selected peer companies: valuation benchmarks EV/Capacity, EV/Output-10, MCap, EV/EBITDA-10 EV/EBITDA-11E EV/EBITDA-12E USD/kW USD/MWh USD mln. RusHydro 5,1 4,8 4,7 385 139 10 084 Tractebel Energia 8,0 7,5 6,9 1 860 282 10 029 Verbund 11,4 11,6 9,5 1 947 541 10 326 China Yangtze Power 10,2 10,0 9,8 1 317 293 16 404 Eletrobras 7,2 6,4 5,4 686 142 13 551 Source: Factset, Bloomberg 5

New capacity: time to reap the benefits  8 GW of new hydro and pumped storage capacity coming online in 2012-2013 vs less than 3 GW in 2000-2010  Over 1.4 GW are contracted under Capacity Supply Agreements (DPM), providing a rate of return of 10.5% for 20 yrs  1920 MW will be launched each year in 2012-2013 on Sayano-Shushenskaya plant, bringing its total installed capacity to pre- accident level by 2014. Replacement of 3 restored units by new ones will be finished by 2016  Ca. 1 GW of capacity will be added through 2025 as a result of extensive modernization of hydropower plants, primarily of the Volga-Kama cascade  Positive cash-flow expected in 2014 Capacity commissioned/capex 2012: 2013: ratio 4338 MW 3748 MW 100 140 169 60,0 640 640 50,0 640 420 40,0 999 420 8086 30,0 640 640 20,0 640 999 10,0 999 0,0 2007 2008 2009 2010 2011 2012 2013 6 6 * - Boguchansk HPP is part of the Boguchansk electrometallurgical complex, 50/50 JV with RUSAL, therefore 50% of its installed capacity can be attributed to RusHydro