According to the prepared in accordance with the Russian Accounting Standards statements for 6 months of 2015 IDGC of Centre’s revenue totalled 38,9 bln RUB, including from electric energy transmission — 38,0 bln RUB, from grid connections — 0,5 bln RUB and other revenue — 0,4 bln RUB. Profit from sales amounted to 4,7 bln RUB, sales profit margin increased a little to 12,1%. Earnings before interest, taxes, depreciation and amortization (EBITDA²) reached 7,5 bln RUB, at the same time the indicator profitability increased to 19,3%. Net profit decreased to 0,5 bln RUB.

Data in billion RUB, unless specified otherwise

[1] Revenue net of cost of sales, selling and administrative expenses
[2] EBITDA is calculated as follows: net profit + profit tax and other similar mandatory payments + interest payable - interest receivable + depreciation charges
[3] Net debt is calculated as follows: long-term debt + short-term debt – cash and cash equivalents – financial investments

Changes in the level of revenue and cost of sales relative to 6 months of 2014 are mainly connected with the transfer by the Company of functions of a supplier of last resort to third-party companies in the compared periods. The increase in the key rate of the Central Bank of the Russian Federation, as well as the formation of reserves for estimated liabilities associated with challenging transactions with retail companies, deprived of the status of a supplier of last resort and recognized as a bankrupt, had significant impact on the financial results for 6 months of 2015.

In connection with the execution by IDGC of Centre in 2013-2014 of functions of a supplier of last resort and accounting for income from electricity transmission in the profit from the sale of electricity, the comparison of the proceeds, received by the Company for the current and previous year for the electricity transmission services and for services from the resale of electric energy and power, should be carried out under comparable conditions.

Data in billion RUB, unless specified otherwise

The volume of electricity transmission services in comparison with the same period last year increased by 0,7% and was 27,5 billion kWh. The reduction in the comparable revenue from electricity transmission occurred due to changes in the model of "joint operation" in the Bryansk region from 01.06.2014 in respect of settlements between IDGC of Centre, PJSC, the supplier of last resort LLC "TEK-Energo" and the territorial grid company LLC "Bryanskoblelectro", and namely: points of delivery from grids of LLC "Bryanskoblelectro" were excluded from the contract for the provision of electric energy transmission services between IDGC of Centre, PJSC and LLC "TEK-Energo", a contract for the provision of electric energy transmission services was concluded between LLC "Bryanskoblelectro" and IDGC of Centre, PJSC, providing for settlements under an individual tariff "with joint operation paying to IDGC of Centre". Reduction of electric energy losses in comparable terms was achieved, excluding the volume of transmission in regards with "last mile" facilities from 9,28% for 6 months in 2014 to 9,27% for 6 months in 2015 due to the implementation of the program on energy saving and energy efficiency.

The company’s total assets as of June 30, 2015 increased by 0,9% and amounted to 112,4 bln RUB. The company’s net assets amounted to 55,9 bln RUB. Net debt³ decreased to 35,6 bln RUB (as of December 31, 2014 — 36,8 bln RUB).

The Company’s statements for 6 months of 2015 can be found at: https://www.mrsk-1.ru/en/information/statements/rsbu/2015/