Current financial results

JSC INTER RAO UES financial performance according to IFRS consolidated financial statements

mln. EUR

¹ IFRS Consolidated Financial Statements of JSC INTER RAO UES  for the year ended 31 December, 2006.

² The main reasons of the Groups’ results for 2007 are the following: 

• in 2007, management of the Group commissioned an independent valuer – Deloitte & Touche - to appraise the property, plant and equipment of five major subsidiaries in order to determine its fair value for the purpose of revaluation as at 1 January 2007. As the result of such revaluation the Group recognised impairment loss in the amount of 30,18 mln EUR which has been recognized in consolidated income statement and which has made the company’s profitability indexes worse;  
• decline of the sell prices in the energy market NordPool due to the significant water resources in Scandinavian countries during 2007 and due to the reduction of carbon dioxide emission quotas;
• volume increase of highly-cost import in the first quarter 2007 in order to cover internal demand in the autumn and winter period 2006-2007 of the parent company;
• increase of purchase prices in the Russian spot market during 2007 (pricing in this market sector is on demand and supply basis).

³ During 2008 the Company went through the reorganizational process  in frame of the final stage of the Russian energy industry reform and which has influenced the principles of the 2008 IFRS financial statements preparation.

As the result of the reorganization the Group has received the following generating assets: JSC “Ivanovo Thermal-gas Plant”, JSC “Norht-West TPP”, JSC “Sochinskaya TES”, JSC “Kaliningradskaya TEC-2”, as well as JSC “Ispytatelniy Stend Ivanovskoy GRES”  and JSC “Eastern energy company. In the Financial Statements the Company has accounted  for the business combinations with  JSC INTER RAO UES and its subsidiaries, JSC “Ivanovo Thermal-gas Plant”, JSC “North-West Thermal Power Plant”, JSC “Kaliningradskaya TEC-2”, JSC “Ispytatelniy Stend Ivanovskoy GRES” and JSC “Eastern energy company” as business combinations amongst entities under common control under an accounting policy using the predecessor accounting method. Accordingly, information in respect of the comparative period and opening balances as at 1 January 2007 has been prepared as if the business combinations took place at the beginning of the earliest period presented. Therefore all the above entities together with their subsidiaries were accounted in the Financial Statements effective from 1 January 2007.

⁴ As the result of the impairment test of the PPE of five major subsidiaries the book value of the appraised PPE  as of 01 January 2007 was lower then its fair value, determined by the independed valuer. The impairment loss has been recognized in consolidated income statement as provision for impairment of PPE.  

⁵ EBITDA has been calculated as Operating profit + Depreciation and Amortization. For 2007 EBITDA has been calculated as Operating profit + Depreciation and Amortization + Provisions for Impairment of PPE since the management has carried out revaluation of five major subsidiaries and it is considered as extraordinary expenses.

Revenue by business segments, in million of EUR

2008*                                                                                                                      2007*

* Based on the Consolidated Financial Statements of JSC INTER RAO UES for the year ended 31 December 2008 (including financial data of the companies acceded to the INTER RAO Group in 2008).

2006**                                                                                                                  2005**

** Based on the Consolidated Financial Statements of JSC INTER RAO UES  for the year ended 31 December 2007, 2006 and 2005 accordingly, without taking into account the financial data of the companies acceded to the INTER RAO Group in 2008).

JSC INTER RAO UES financial performance according to RAS financial statements

mln. rubles

¹ the data of the financial statements of JSC INTER RAO UES prepared in accordance with the Russian accounting standards;

² the data include financial results of JSC “Sochinskaya TES” (now – Sochinskaya TES Branch) for 12 month 2008, financial results of Severo-Zapadnaya TETs Branch and Ivanovskie PGU Branch for May – December 2008, financial results of the Kaliningradskaya TETs Branch for July – December 2008 and financial results of the export and import operations (JSC INTER RAO UES functions) for May – December 2008.

The procedure of the financial statements preparation for reorganized companies is regulated by the order of the Finance Ministry No. 44n as of May 20, 2003 “On approval of the instructions on the financial statements preparation for the reorganized companies”.

Revenue of JSC INTER RAO UES by business segments, in million of RUR

Comments:

6 month 2009 include financial statements of JSC INTER RAO UES prepared in accordance with the Russia accounting standards.

Contact information:
Address: 12, Krasnopresnenskaya Nab., Entrance 7, Moscow, 123610, Russian Federation
Tel.: +7 (495) 967-05-27
Fax: +7 (495) 967-05-26
Contact person: Ivanichkina Svetlana
E-mail: ivanichkina_sv@interrao.ru