JSC Inter RAO Released RAS Financial Statements for 12 months of 2013

Revenue from electricity export was 23.3 billion RUB, down 2.3 billion RUB (9.0%) from 2012. The biggest reductions of electricity export by volume are attributable to Kazakhstan and Lithuania (27.0% and 25.4% respectively) where they were driven by lower commercial sales and capacity restrictions set by Baltic system operators for Russian deliveries in the second half of 2013. Export to Finland increased by 8.3% by volume due to larger deliveries to this country and growing exchange rate of Euro to Ruble. Export to other traditional countries did not change significantly.

JSC Inter RAO is finalizing the transfer of its power generation affiliates to its fully owned subsidiary JSC INTER RAO — Electric Power Plants. Leases of power generation equipment at Kaliningradskaya TPP-2, Severo-Zapadnaya TPP and Sochinskaya TPP expired on March 1, 2012. Lease of power generation equipment at Ivanovskiye CPP expired on September 30, 2013. Therefore, the financial statements of JSC Inter RAO for 2012 included two months of performance data for all four aforementioned subsidiaries and ten months of performance data for one of them, while the 2013 financial statements only include nine months of performance data for Ivanovskiye CPP. As of October 1, 2013, JSC Inter RAO no longer generates electricity or heat.

Revenue from sales of electricity and capacity at the Wholesale Electricity and Capacity Market was 14.7 billion RUB in 2013, down 1.9 billion RUB (11.4%) year-on-year. Our revenue reduced because we transferred all power generation operations to JSC INTER RAO — Electric Power Plants as a part of our effort to optimize the management of power generation assets. Other revenue was 3.2 billion RUB in 2013, compared to 0.5 billion RUB in 2012. Growth of other revenue is primarily attributable to the sale of four gas turbine power generation units to Venezuela.

Cost of goods sold was 34.7 billion RUB in 2013, down 0.5 billion RUB (1.4%) from the previous year. Gross profit was 6.5 billion RUB in 2013 compared to 7.5 billion RUB a year ago. Loss from sales was 1.9 billion RUB in 2013 compared to 1.1 billion RUB in 2012.

Income from stakes in other businesses was 3.5 billion RUB compared to 2.6 billion RUB in the same period of 2012. The 0.9 billion RUB (34.6%) increase is attributable to larger dividend payments from subsidiaries and affiliates.

Balance of other income and expenses amounted to (56.5) billion RUB, compared to (11.0) billion RUB a year ago. The strongest contributing factor to this line was the growth of expenses due to revaluation of listed and unlisted financial assets at the end of reporting year. Depreciation amounted to 57.0 billion RUB in 2013 compared to 14.8 billion RUB in 2012. The main reason for this change was the plunge of energy shares.

Net loss was 53.7 billion RUB in 2013 compared to net loss of 14.4 billion RUB a year ago.

Excluding depreciation of financial investments, we received 3.3 billion RUB of net profit in the reporting year compared to 0.4 billion RUB of net profit in 2012.

Total assets of JSC Inter RAO reduced by 98.4 billion RUB (22.1%) to 346.3 billion RUB as of December 31, 2013. Primary drivers of total asset reduction were the reduction of fixed assets and short-term accounts receivable, which were partially offset by an increase in cash and cash equivalents.

Fixed assets reduced by 56.6 billion RUB (15.3%) in 2013 to 312.7 billion RUB at the end of the reporting year. Reduction of fixed assets was primarily driven by the following factors: 58.6 billion RUB (17.5%) contraction of long-term financial investments due to their revaluation at the end of the reporting period; sale of our stakes in JSC Volzhskaya TGK and JSC TGK-6 as a part of our energy asset management strategy; and 5.3 billion RUB (19.9%) increase in long-term accounts receivable due to the signing of additional payment deferral agreements with our subsidiaries.

Current assets reduced by 41.7 billion RUB (55.4%) in 2013 to 33.6 billion RUB as of December 31, 2013. This reduction was primarily driven by the payment of 37.8 billion RUB of accounts receivable of our CJSC INTER RAO Capital subsidiary and conversion of short-term intragroup accounts receivable into long-term accounts receivable. Cash and cash equivalents increased by 2.6 billion RUB (18.4%) to 16.7 billion RUB.

Net debt reduced by 8.9 billion RUB (62.7%) to 5.3 billion RUB in 2013. The split between long-term debt and short-term debt changed from 77.2% and 22.8% in the beginning of 2013 to 99.9% and 0.1% at the end of 2013 due to scheduled and early repayment of high-cost loans.

Total liabilities (excluding loans and borrowings received) decreased by 35.7 billion RUB (76.9%) from the beginning of the year to 10.7 billion RUB at the end of reporting period. Reduction of other liabilities was primarily driven by repayment of 26.2 billion RUB loan from INTER RAO Capital and 10.4 billion RUB worth of our promissory notes. These notes were used to acquire power generation assets of JSC Bashkirenergo.