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

GAZPROM’S POWER GENERATION STRATEGY Denis Fyodorov Director General, Gazprom energoholding PRESS CONFERENCE ON THRESHOLD OF GAZPROM’S ANNUAL GENERAL SHAREHOLDERS MEETING 1 JUNE 21, 2010

Gazprom’s Power Generating Assets: Global Status RAO UES of Russia TGC -1 WGC-2 TGC-6 TGC-11 TGC-7 TGC-2 TGC-12 WGC-3 WGC-4 MOSENERGO TGC-8 TGC-13 WGC-5 TGC-9 TGC-14 TGC -4 WGC-6 TGC -5 TGC-10 WGC-1 Installed capacity Power generation 150 800 (GW) (billion kWh) 97 95 600 448 100 407 73 73 64 320 400 296 50 253 44 43 40 39 39 36 187 186 185 50 165 143 137 21 200 14 88 81 12 12 11 65 61 55 41 0 0 CEZ AS EDF E.ON GDF KEPCO RWE Duke Scottish CEZ AS Scottish Enel Southern AEP Fortum Tenaga EDF KEPCO E.ON GDF RWE Duke Fortum Endesa Gazprom Energias Enel Southern AEP Tenaga Iberdrola Gazprom Iberdrola Endesa Energias Source: companies' data 1 2 GAZPROM’S POWER GENERATION STRATEGY

Gazprom’s Power Generating Assets: Domestic Status Gazprom Group’s share in Gazprom Group’s share in domestic power generating domestic power generation facilities commissioning, 2008-2009 GAZPROM GAZPROM 57% 17% Other Other 1,120 164.6 companies companies billion kWh MW 827.4 billion kWh Gazprom Group’s share in domestic installed capacity GAZPROM Other companies - 123 GW 16% Gazprom - 36 GW RusHydro - 25 GW 11% 55% RosAtom - 23 GW 10% (1) Inter RAO - 18 GW 8% Source: State Statistics Committee, companies' data, UES system operator 1. The total installed capacity of Inter RAO UES includes its affiliate WGC-1 2 3 GAZPROM’S POWER GENERATION STRATEGY

Gazprom Group’s Power Generating Assets Structure GAZPROM GAZPROM energoholding Non-core assets Core assets (controlling stakes) 3.9% FGC UES of Russia MEZHREGIONENERGOSBYT Adler CHPS 8.5% MOSENERGO Inter RAO UES 10.5% Holding MRSK TGC-1 10.5% Kaliningrad RAO Eastern Energy GAZPROM CHPP-2 Systems energo 5.3% TGC-11 WGC-2 5% TGC-5 Kaunas CHPP WGC-6 5.3% WGC-5 3 4 GAZPROM’S POWER GENERATION STRATEGY

Operating & Financial Results 2009 2010 2009 2010 Power Heat Power Heat generation, generation, generation, generation, Revenue EBITDA Net profit billion kWh million Gcal billion kWh million Gcal 112 RUB billion 94 65.4 64.3 62.4 61.7 17.8 MOSENERGO 8.1 4.5 1.3 38 31 26.9 26.9 26.7 26.3 TGC-1 7.5 3.3 2.8 0.2 40.5 40.7 49.8 47.2 WGC-2 3.5 2.3 2.4 1.7 -0.3 -1.3 42.2 41.8 38.9 29.0 WGC-6 5.1 4.4 4.4 2.8 1.6 0.8 Source: companies’ data 4 5 GAZPROM’S POWER GENERATION STRATEGY

Further Development of Power Generating Companies Capacity of Gazprom Group’s power generating companies will reach 44.8 GW 1 by 2020 Investment-driven development: Operating efficiency enhancement: − − Optimizing management structure Enhancing competitiveness − − Optimizing costs Ensuring production reliability − − Centralizing procurement Expanding market presence − − Renovating capital assets Improving corporate governance − Increasing marginal profit 1. Without regard to facilities decommissioning 6 5 GAZPROM’S POWER GENERATION STRATEGY

Prerequisites for Merger between WGC-2 & WGC-6 Corporate decisions regarding the structure of this deal are under development Merger between Installed capacity portion, GW WGC-2 and 25.3 23.2 WGC-6 will create 17.8 one of the largest power generating 11.9 9.9 WGC-2 8.7 8.6 8.5 companies 7.5 (1) RusHydro in Russia RosAtom WGC-6 Mosenergo WGC-1 WGC-5 WGC-4 Inter WGC-3 RAO 1. The total installed capacity of Inter RAO UES power plants does not include WGC-1 7 6 GAZPROM’S POWER GENERATION STRATEGY

Non-Core Assets Non-core assets swap: − Gaining control in power generating companies and assets − Increasing Gazprom Group’s share in core power generating companies 10.5% RAO Eastern Energy Systems Total value of Holding MRSK 10.5% Gazprom Group’s 8.5% Inter RAO UES non-core assets GAZPROM 5.3% is about Enel WGC-5 energoholding USD 1.8 billion (1) 5.3% TGC-11 5% TGC-5 3.7% FGC UES 1. The assets are evaluated in accordance with the statements as of May 17, 2010 7 8 GAZPROM’S POWER GENERATION STRATEGY

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 9 8 GAZPROM’S POWER GENERATION STRATEGY

Thank You for Your Attention! PRESS CONFERENCE ON THRESHOLD OF GAZPROM’S ANNUAL GENERAL SHAREHOLDERS MEETING 10 JUNE 21, 2010