Inter RAO - Export: Engineering and supply of power equipment 2016

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EngineeringInternationalPower TradingPower GridsRetail Power Supply

• The major power distribution company in Georgia (JSC Telasi);• Over 520 000 ultimate customers;• Over 4,9 thousand km of power transmission lines.

• Russian strategic operator of power exports and imports;• Electricity export in 2015: 17.5 billion kWh,import: 1.46 billion kWh.

• 15 built and upgraded power facilities in Russia and the CIS (about 4.5 GW);• Ongoing HPP and TPP construction projects in South America (1231 MW);• Supply of power equipment and spare parts.

• 35 GW in seven countries;• 40 TPP and 9 small cogeneration plants;• 12 HPP (including 7 small HPP);• 2 wind parks;• Power output in 2015: 141 billion kWh;• Heat output in 2015: 39.6 million Gcal.

• 12.7 million clients in 11 regions of Russia;• 16% of the Russian retail electricity market;• Retail power sales in the Baltic and Scandinavia;• Power supply to large enterprises.

• Energy audit and energy management;• Manufacturing of cutting-edge lighting systems;• Development of innovative technologies for thermal generation.

Revenues 13,21

EBITDA 1,17

Net profit 0,39

Power Generation R&D and Energy Efficiency

Company’s Overview Equity Ownership Structure Financial Performance, IFRS 2015 Statements ($ bln.)*

27.63%

20.09%

18.57%

28.79%

4.92%

Inter RAO Group

• A diversified international energy holding, one of the major energy companies in Europe;

• About 60 thousand people employed;• High priority for HSE policy. The environment

management system is certified pursuant to ISO 14001:2004 standard;

• Inter RAO is listed on MICEX- RTS, and the company's Global Depositary Receipts (GDR) are admitted to trading on the London Stock Exchange's International Order Book (IOB).

Rosneftegaz Group – 27.63%

Inter RAO Capital - 20.09%

Free float – 28.79%

Federal Grid Company Group – 18.57%

RusHydro Group – 4.92%

* Average exchange rate of USD to Ruble in 2015 was 60.96

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Омская ТЭЦ - 3

Tomskaya-1 CPConstruction of 15 MW gas-turbine unit. Launched in 2012.

Kharanorskaya TPPConstruction of a coal-fired unit, 225 MW. Launched in 2012.

Kaliningradskaya-2 CP Construction of 450 MW CCGT unit. Launched in 2011.

Gusinoozyorskaya TPP Reconstruction of a coal-fired unit, 210 MW. Launched in 2013.

Omskaya-3 CPConstruction of 85 MW CCGT unit. Launched in 2013.

Ivanovo CCGT unitsConstruction of 325 MW CCGT unit. Launched in 2012.

Urengoyskaya TPP Construction of 474 MW CCGT unit. Launched in 2012.

Sochinskaya TPPConstruction of 80 MW CCGT unit. Launched in 2009

Dzhubginskaya TPP Construction of 2 X 210 MW gas-turbine units. Launched in 2013.

1 983 MW of new and upgraded facilitiesto be launched in 2016-2017

Reference list of Inter RAO engineering projects in Russia and the CIS

Yuzhnouralskaya-2 TPP Construction of two CCGT units with total capacity of 825 MW. Launched in 2013-2014.

Nizhnevartovskaya TPP Construction of 413 MW unit. Launched in 2014.

Sangtuda-1 HPP (Tajikistan) 670 MW.Launched in 2008-2009

Cherepetskaya TPPConstruction of two coal-fired units with total capacity of 450 MW. Launched in 2014-2015.

Completed projects (4 498 MW launched)

Year (total capacity) Plant Type Fuel

Capacity (increase)

, MW

2016

(540 MW)

ZatonskayaCogeneration Plant (CP),

(Construction of units 1,2)

NewGas

(CCGT)420

Omskaya-3 CP(replacement of a

turbine)Modernization gas 120

 2017

(2079 MW)

Verkhnetagilskaya TPP

(Unit 12) New

Gas

(CCGT)420

Permskaya TPPNew

Gas

(CCGT)800

Voronezhskaya-1 CP NewGas

(CCGT)223 Omskaya-5 CP

Reconstruction of steam-turbine 98/18 MW. Launched in 2015.

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Инжиниринговые проекты Группы «Интер РАО» в России и СНГ

International Engineering Business Development

2009• Start of power equipment exports to Cuba

2010

• Signing of the contract for supply of 13 gas-turbine units to Venezuela (total capacity 423 MW)

• Signing of the contract for construction of Toachi Pilatón hydro power complex in Ecuador (254 MW)

2011• Incorporation of Inter RAO – Export, LLC (a specialized subsidiary within

Inter RAO Group)

2013• Signing of the contract for expansion of Termogas Machala TPP in Ecuador

(from 130 MW to 308 MW)

2014• Inter RAO – Export and a consortium of Argentine companies win the

tender for construction of Chihuido – I HPP in Argentina (637 MW)

2015

• Signing of the contract for construction of 800 MW of thermal power capacities in Cuba (one 200 MW unit at Maximo Gomez TPP and three 200 MW units at Este Habana TPP)

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INTER RAO – Export , LLC

Our services

• Supply of basic and auxiliary equipment;

• Equipment installation and commissioning;

• Power plant management, operation and maintenance;

• Service contracts;

• Project management (EPC/EPCM contracts);

• Single window for promotion of Inter RAO Group companies’ goods and services.

• Experienced management team with a large portfolio of completed projects;

• Growing portfolio of the company’s ongoing projects, cooperation with major regional energy companies;

• Experience in raising project funding and use of government support;

• Use of the best international management practice in line with ISO 9001 standard;

• Strong and trust-based professional relations with the governments and regulators in Russia and the countries of the business reach.

Our advantages

Our Projects

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Supplies of miscellaneous equipment and spare parts

In 2009-2015 the Group performed 26 contracts for power equipment supplies to Cuba

Customer: ENERGOIMPORT

Equipment:

• Equipment for boilers of thermal power plants;• Circulation pumps;• Supporting structures and accessories for transmission

lines;• Spare parts for equipment and auxiliary equipment for

Maximo Gomez TPP;• Spare parts for equipment and auxiliary equipment for

Este Habana TPP;• Spare parts and equipment for small hydropower

plants.

Inter RAO Group is performing the contract for supplying of 13 gas-turbine units with total installed capacity of 423 MW to Venezuela

Customer: PDVSA (represented by Bariven)

Equipment:

• 32.6 MW LM2500+G4 gas-turbine units (produced by GE; some of them are completed with generators TTK-37 manufactured by the Russian company Privod);

• Under the order of Inter RAO – Export, LLC a new model of electric power generator has been created. It is compatible with GE gas turbine and designed for Venezuela’s power network which operates at 60 Hz.

Supplies to Cuba Supplies to Venezuela

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Toachi Pilatón hydro complex in Ecuador

Supply of electric power equipment for a 254 MW Toachi Pilatón hydropower chain.

Customer: State Company of Ecuador CELEC E.P.

Hydro complex structure:

• Alluriquín HPP, 204 MW (Alluriquín substation, Toachi dam)

• Sarapullo HPP, 48.9 MW (Sarapullo substation, Pilatón dam)

• Small HPP Toachi, 1.4 MW

Equipment:

• Hydro-power equipment (turbines, power generators, transformers);

• Hydromechanical equipment (spillway gates, cranes, intake screens, cleaning machines);

• Auxiliary equipment (electric and mechanical equipment);

• Equipment for 230 kV step up substations.

• The Customer provides funding using an export loan from JSC Roseximbank extended against sovereign guarantees of the Republic of Ecuador.

• For this project, the Customer signed an 11-year loan agreement worth $123.3 million with a banking syndicate including State Corporation Vnesheconombank, JSC Roseximbank, JSC Gazprombank, Gazprombank (Switzerland) Ltd. and Russian Commercial Bank (Cyprus) Ltd.

Project Profile Funding

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Expansion of Termogas Machala TPP in Ecuador

Project Profile Funding

The project includes expansion of the existing Termogas Machala thermal power plant by building a gas-turbine power generation unit and a steam turbine. As a result, Termogas Machala will be the first thermal power plant in Ecuador to operate in combined steam-gas cycle. Its installed capacity will increase from 130 MW to 308 MW.

Customer: State Company of Ecuador CELEC E.P.

Equipment and works:

• Design, delivery, construction, installation and launch of an additional 6FA gas-turbine unit;

• Design, delivery, construction, installation and launch of an additional steam-turbine unit;

• Construction of transmission lines;

• Expansion of two existing substations on turnkey conditions.

• The whole project is valued at approximately $230 million.

• The Customer provides funding using an export loan from Roseximbank extended against sovereign guarantees of the Republic of Ecuador.

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Construction of 800 MW in Cuba (four 200 MW-units)

Project Profile Funding

In October of 2015 INTER RAO – Export, LLC and the Cuban company Energoimport (forms a part of the State Power Company Union Electrica) signed the contract for construction of four 200-MW generating units at two operational power plants in Cuba: one at Maximo Gomez thermal power plant (town of Mariel) and three at Este Habana thermal power plant (town of Santa Cruz del Norte).

Customer: State Cuban Company Energoimport

Equipment and works:

• EPC, organizational and management activities;

• Design of power equipment;

• Supply of the whole complex of principal and auxiliary equipment;

• Installation of equipment;

• Commissioning and launch of the facilities

• The whole project is valued at 1.2 bln. Euros.

• The Customer will finance the project partially with own funds and also using an interstate export loan.

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Prospects and strategic prioritiesfor business development of INTER RAO – Export, LLC

• In 2010 – 2015 the region’s total installed capacity grew by 39.5 per cent.

• By 2020 it is expected to increase by 28.8 per cent more, and the total generation capacity is to reach 3 200 GW.

• The Latin American and Caribbean countries are the main region of the company’s presence (Ecuador, Cuba, Venezuela);

• According to projections for 2016 – 2025 the total installed capacity will increase from 372.5 GW to 472 GW.

• The region traditionally has been the area of presence of Russian power engineers;

• As of the end of 2015 the region’s installed capacity was 262 GW, by 2020 it is expected to grow by 21.8 per cent reaching 319 GW;

• According to forecasts, by 2020 the region’s installed capacity will grow by 37.6 per cent (to 129 GW).

• New promising markets: Ethiopia, Angola, South Africa.

• Searching for projects with the view of participating as an EPC/EPCM-contractor and supplier of equipment including the possibility of arranging target financing;

• Cooperation with sectorial companies and financial institutions in regional markets;

• Searching for investors interested in participating in projects of construction of generating capacities;

• Promoting the products manufactured by Inter RAO Group’s companies.

Latin America

• New promising markets: Vietnam, Lao PDR, India, Indonesia.

• New promising markets: Iran, Iraq, Egypt.

South and South-East Asia

Middle East Africa

• New promising markets: Argentina, Bolivia, Brazil.

Key areas of business development

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Inter RAO Group products and technologies

INTER RAO – Export, LLC represents the interests of Inter RAO Group for promotion of the products manufactured by the Group’s companies to foreign markets

Innovative technologies in the sphere of repair and restoration of power equipment, applied in the manufacturing facilities of Inter RAO – Coating Application Centre LLC.

Manufacturing of 77 MW gas-turbine units 6FA, by Russian Gas Turbines LLC which was established in 2011 as a joint venture between GE, Inter RAO and United Engine Corporation.

Solutions in the field of monitoring and dispatch of electric grid complex, elaborated in joint cooperation with the Inter RAO Power Efficiency Centre basing on intelligent devices which monitor the dispatch of electricity and heat.

LED technology solutions.