Denis Fyodorov Director General, Gazprom energoholding PRESS - - PowerPoint PPT Presentation

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GAZPROM’S POWER GENERATION STRATEGY

Denis Fyodorov

Director General, Gazprom energoholding

PRESS CONFERENCE ON THRESHOLD OF GAZPROM’S ANNUAL GENERAL SHAREHOLDERS MEETING JUNE 21, 2010

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55 41 61 65 81 88 137 143 165 185 186 187 253 296 320 407 448 200 400 600 800

EDF KEPCO E.ON GDF Enel RWE Southern AEP Gazprom Iberdrola Endesa Tenaga Duke Fortum CEZ AS Energias Scottish

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GAZPROM’S POWER GENERATION STRATEGY

Installed capacity Power generation

(billion kWh) 11 12 12 14 21 36 39 39 40 43 44 50 64 73 73 95 97 50 100 150

EDF Enel E.ON GDF KEPCO RWE Iberdrola Southern Endesa AEP Duke Gazprom Energias Fortum CEZ AS Tenaga Scottish

(GW) TGC-2 TGC -4 TGC -5 TGC-6 TGC -1 TGC-8 TGC-9 TGC-10 TGC-11 TGC-12 TGC-13 TGC-14 WGC-1 WGC-3 WGC-4 WGC-5

RAO UES of Russia Source: companies' data

Gazprom’s Power Generating Assets: Global Status

TGC-7 WGC-2 WGC-6 MOSENERGO

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164.6 billion kWh 827.4 billion kWh 1,120 MW

(1)

Source: State Statistics Committee, companies' data, UES system operator 16% 55% 8% 10% 11%

Other companies - 123 GW Gazprom - 36 GW RusHydro - 25 GW RosAtom - 23 GW Inter RAO - 18 GW

• 1. The total installed capacity of Inter RAO UES includes its affiliate WGC-1

Gazprom Group’s share in domestic power generation Gazprom Group’s share in domestic power generating facilities commissioning, 2008-2009

Gazprom’s Power Generating Assets: Domestic Status

Gazprom Group’s share in domestic installed capacity GAZPROM’S POWER GENERATION STRATEGY

Other companies 17% Other companies 57% GAZPROM GAZPROM GAZPROM

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Kaunas CHPP Adler CHPS Kaliningrad CHPP-2

FGC UES of Russia TGC-11 TGC-5 WGC-5 Inter RAO UES Holding MRSK RAO Eastern Energy Systems

Non-core assets 3.9% 5.3% 5% 5.3% 10.5% 10.5% 8.5% Core assets (controlling stakes)

Gazprom Group’s Power Generating Assets Structure

GAZPROM’S POWER GENERATION STRATEGY

GAZPROM

GAZPROM

energo MEZHREGIONENERGOSBYT

MOSENERGO GAZPROM

energoholding

TGC-1 WGC-2 WGC-6

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Power generation, billion kWh Heat generation, million Gcal

64.3 61.7 65.4 62.4 2009

Power generation, billion kWh Heat generation, million Gcal

2010 RUB billion 26.7 26.9 26.3 26.9 47.2 49.8 2.3 2.4 29.0 38.9 4.4 4.4 2009 2010 Source: companies’ data Revenue EBITDA Net profit

GAZPROM’S POWER GENERATION STRATEGY

Operating & Financial Results

MOSENERGO

TGC-1 WGC-2 WGC-6

94 112 8.1 17.8 1.3 4.5 2.8 7.5 0.2 3.3 31 38 40.5 40.7

• 0.3

3.5

• 1.3

1.7 42.2 41.8 1.6 5.1 0.8 2.8

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Further Development of Power Generating Companies

Capacity of Gazprom Group’s power generating companies will reach 44.8 GW1 by 2020

Investment-driven development: Operating efficiency enhancement: − Enhancing competitiveness − Ensuring production reliability − Expanding market presence − Renovating capital assets − Increasing marginal profit − Optimizing management structure − Optimizing costs − Centralizing procurement − Improving corporate governance

• 1. Without regard to facilities decommissioning

GAZPROM’S POWER GENERATION STRATEGY

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Prerequisites for Merger between WGC-2 & WGC-6

Corporate decisions regarding the structure of this deal are under development

Merger between WGC-2 and WGC-6 will create

• ne of the largest

power generating companies in Russia

RusHydro Inter RAO WGC-3 WGC-4 WGC-5 WGC-2 WGC-6 WGC-1

Mosenergo

RosAtom

25.3 23.2 17.8 11.9 9.9 8.7 8.6 8.5 7.5 (1)

• 1. The total installed capacity of Inter RAO UES power plants does not include WGC-1

Installed capacity portion, GW GAZPROM’S POWER GENERATION STRATEGY

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RAO Eastern Energy Systems Holding MRSK Inter RAO UES Enel WGC-5 TGC-11 TGC-5 FGC UES

10.5% 10.5% 8.5% 5.3% 5.3% 5% 3.7%

Non-Core Assets

Total value of Gazprom Group’s non-core assets is about USD 1.8 billion (1)

− Gaining control in power generating companies and assets − Increasing Gazprom Group’s share in core power generating companies

Non-core assets swap:

• 1. The assets are evaluated in accordance with the statements as of May 17, 2010

GAZPROM’S POWER GENERATION STRATEGY

GAZPROM

energoholding

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2010 Priorities

− Reliable and uninterrupted heat and power generation − Investment programs (capacity supply agreements) implementation by power generating companies − Strategy and objectives shaping within Gazprom Group’s power generation business architecture − Operating efficiency enhancement by the Group’s power generating companies − Merger between WGC-2 and WGC-6 − Non-core assets swap

GAZPROM’S POWER GENERATION STRATEGY

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Thank You for Your Attention!

PRESS CONFERENCE ON THRESHOLD OF GAZPROM’S ANNUAL GENERAL SHAREHOLDERS MEETING JUNE 21, 2010