БАШКИРСКОЕ ОТКРЫТОЕ АКЦИОНЕРНОЕ ОБЩЕСТВО ЭНЕРГЕТИКИ И ЭЛЕКТРИФИКАЦИИ

«БАШКИРЭНЕРГО»

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Конфиденциально

OJSC “Bashkirenergo” Financial and Operational Results of 6 months of 2011

(IFRS)

Conference-call presentation, September 6, 2011

Bashkir open joint-stock company of the power industry and electrification

OJSC “BASHKIRENERGO”

Andrey Makarov, CEO of OJSC “Bashkirenergo”

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mln. RURKey Financial Indicators

Factors for change in revenue:Revenue reduction in the statements for the six months of 2011 is the result of reclassification of all operations of LLC ESKB into the separate line “Profit from the discontinued operations” due to the decision of to sell the retail company.Factors for change in operational expenses:- Fuel costs for 6 months of 2011 making up 54% of overall operating expenses

increased 12% to 13,783 mln RUR (482 mln USD) and were driven by a 15% gas price indexation, as well as by a 4% rise in power output by thermal power plants. The slower growth pace of fuel costs compared to gas price hike is explained by the reduction in specific consumption of equivalent fuel.

- Purchased electricity and capacity sales fell 70% to 1,992 mln RUR (70 mln USD) as the result of reclassification of the LLC ESKB results.

Revenue structure, %Indicator 6 months

2011 6 months

2010 y.o.y.

Revenue 29,385 31,302 -6%Operational expenses (25,493) (28,168) -9%Fuel (13,783) (12,292) 12%Purchased electricity (1,992) (6,632) -70%Staff costs (4,210) (3,920) 7%Depreciation (1,735) (1,713) 1%Operational Profit 3,892 3,134 24%EBIT margin, % 13% 10% 3 b.p.OIBDA 5,627 4,847 16%OIBDA margin, % 19% 16% 3 b.p. Financial (costs)/income (28) (19) 47%Income tax (863) (771) 12%Profit from continuing operations 3,001 2,344 28%Profit from discontinued operations 331 40 728%Net profit 3,332 2,384 40%Net margin, % 11% 8% 3 b.p.

Structure of operating expenses, %

6 months 2010 6 months 2011

21,240 22,659

6,653 6,3691,492 2,274

Other Heat Electricity and capacity

6 months 2010 6 months 2011

12,292 13,783

3,920 4,210

6,632 1,992

1,713

1,735

1,456

1,441

518

1,137

1,637

1,195

Fuel Staff costs Purchased electricityDepreciation Repairs and maintenance Transision of electricityOther

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Key Financial Indicators for 6 months of 2011 mln RUR

CompaniesRevenue OIBDA Net profit

6 months 2011

6 months 2010

6 months 2011

6 months 2010

6 months 2011

6 months 2010

OJSC “Bashkirenergo” 20,534 36,791 3,005 349 2,324 133 LLC “BGK” (generation) 2,591 14,851 565 1,658 23 946 LLC “BashRES” (ditribution grid) 7,030 5,889 1,573 1,599 868 926LLC “BashRTS” (heating and heating grid) 4,988 3,728 (34) 360 (129) 206LLC “BSK” (transmission grid) 614 932 177 592 73 404 LLC “Bashteplosbyt” (heat retail) 0 53 (3) 11 (3) 9 Other 646 2,068 30 68 (3) 26 Total 36,403 64,311 5,315 4,636 3,153 2,649 Adjustments (7,018) (33,009) 312 211 (152) (305)Total IFRS 29,385 31,302 5,627 4,847 3,001 2,344

2211.31788108695; 63%

941.202; 27%

331; 10%

Net profit in segments6 months 2011 , mln RUR

Generation of electricity and heat Grid

Retail (electricity)*

The intersegment revenue between LLC ESKB (retail company) and LLC “BashRES” (distribution grid) with OJSC “Bashkirenergo” (genco) has become external.

OIBDA is adjusted for depreciation and other items.Net profit is adjusted for intergroup dividends additional depreciation charge and some

provisions.* In compliance with the IFRS standards for the reason of the decision by the Board of Directors of OJSC “Bashkirenergo” to sell the retail company, all operations of LLC ESKB are reflected in a separate line “Profit from the discontinued operations”.

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Heat with steam 4 825

Heat with water9 131

“Generation” segment operational results for six months of 2011

OJSC “Bashkirenergo” total power generation in the first six months of 2011 was 11,476 mln kWh, gaining 4.3% year-over-year, Capacity factor rose to 62%.

The specific consumption of equivalent fuel fell 2.5 g/kWh for electricity generation to 316.7 g/kWh as the result of energy efficiency measures.

Electricity sales at the wholesale market for six months amounted to 12,356 mln kWh, with 1,690 mln. kWh of purchased electricity.

Capacity sales amounted to 3,681 МW a month.

The main reason for strong operational results in Generation segment is a preferable price situation at OREM.

Heat output by segments, thousand Gcal

Heat output of the Company amounted to 13,956 thousand Gcal matching the results of 2010.

The specific consumption of equivalent fuel for heat output fell 1 kg/Gcal to 142.8 kg/Gcal compared to the same period last year due to heat output redistribution from boilers to CHPs.

Electricity Capacity0%

10%20%30%40%50%60%70%80%90%

100%

1,7031,018

10,6532,663Unregulated prices

Tariff

Electricity and capacity sales structure at OREM

Power Generation 2008 – 2011, mln kWH

1Q 200

8

2Q 200

8

3Q 20

08

4Q 200

8

1Q 200

9

2Q 200

9

3Q 200

9

4Q 200

9

1Q 201

0

2Q 201

0

3Q 20

10

4Q 201

0

1Q 201

1

2Q 20

114,000

4,500

5,000

5,500

6,000

6,500

7,000

5

6 months 2010 6 months 2011 6 months 2010 6 months 2011

losses

effective output

Transmission grid Distribution grid (LLC “BashRES”)

10 779

(LLC “BSK”)

1,46%

9 908

9,47%9,14%

9 547

Operational results of Power Grid for 6 months of 2011

Redistribution of actual power flow due to the grid regime factors resulted in a slight increase of power losses both in transmission and distribution grid.

The revision of transmission tariffs of transmission and distribution line of OJSC “Bashkirenergo” caused little financial impact in the Company’s overall results.

1,43%

10 847Mln kWh

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Capital and reserves52 091

Liabilities11 071

Equity and liabilities

June 30, 2010 June 30, 2011

Debt structure, mln RURShort-term loans and borrowingsLong-term loans and borrowings

Structure of assets, equity and liabilities as at June 30, 2011.

By the end of the six months of 2011 the Company’s financial debt increased to 2,433 mln RUR (87 mln USD) mainly due to a three-year loan for the construction of a new power station SGU CHP-5 obtained from Sberbank. .

June 30, 2010 June 30, 2011

0.18x

0.43xДолг/OIBDA

The debt/OIBDA ratio still stays at the comfortable level of 0.43.

Non-current assets

53 060

Current assets 10 103

Assets

2 433

866

In 6 months the Company assets increased by 9%.

Property, plant and equipment increased by 7% due to new commissioning and increase of construction in-progress.

Liabilities increased by 44% as the result of growth of loans and trade and other payables.

Mln. RUR

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Investment projects in “Generation” segment

Construction of SGU-60 at CHP-2 of Ufa

Modernization of the existing steam turbine with GTU SGT-800 Siemens 47 MW increasing the unit install capacity to 53 МW and 35 Gcal/h.

On August 29, 2011 SGU-60 was officially commissioned and starting from September 1, 2011 it began to supply electricity and capacity to OREM.

Estimated project cost 14,017 mln RUR.

Installed capacity 440 MW, 290 Gcal/h

Year of commissioning 2013

Construction of CHP-5 of Ufa with 2 gas-steam units (SGU-220 MW)

Estimated project cost 1,543 mln RUR.

Installed capacity 53 МW

Year of commissioning 2011

On April 29 the Board of Directors approved the decision to resume the construction of the SGU CHP-5 in Ufa (440 MW, 290 Gcal/h) with the total project cost of 14 bln RUR.

On June 15, 2011 OJSC “Bashkirenergo” settled all the payments amounting to 2,113 mln RUR for the gas-turbine, steam-gas, and generator equipment produced for SGU CHP-5 in Ufa.

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Disclaimer

Statements contained in this presentation may contain forward-looking information that reflects management’s current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations

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Contacts

Head of Investor Relations OJSC “Bashkirenergo”

Maxim Kochetkov

tel: + 7 (495) 228-07-74 +7 (963) 990-67-66

kochetkov@bashkirenergo.ru