According to the prepared in accordance with the Russian Accounting Standards statements for Q1 2021, Rosseti Centre’s revenue (the public name IDGC of Centre, PJSC, the ticker — MRKC) was 26 832,8 mln RUB, including from electric energy transmission — 25 999,6 mln RUB, from grid connections — 213,8 mln RUB, from sale of electric energy and power — 166,2 mln RUB and other revenue — 453,2 mln RUB. Sales profit was 3 227,9 mln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA²) reached 6 357,7 mln RUB, EBITDA margin increased against the same period last year and was 23,7 %. Net profit reached the level of 2 172,1 mln RUB.

Data in million 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 + depreciation charges

^[3]Net debt is calculated as follows: long-term debt + short-term debt – cash and cash equivalents – short-term financial investments

*Taking into account the volume of services for the transmission of electricity in the territory of execution of the functions of the electricity supplier of last resort in the Tver region

Revenue for electricity transmission services at the end of the 1st quarter of 2021 showed an increase of 7,9 % compared to the same period in 2020 due to growth in the volume of services provided for electricity transmission by 5,8 % in a colder winter, as well as due to an increase in the average tariff from 1 July 2020.

Revenue from grid connection services at the end of the 1st quarter of 2021 increased by 53,6 % compared to the same period of 2020 due to the execution in the 1st quarter of 2021 of the grid connection agreement with Russian Railways LLC worth 80,08 mln RUB.

The decrease in other revenue in the reporting quarter does not reflect any negative trends, since the provision of unregulated services is not characterized by a stable quarterly distribution of revenue receipt within the year. At the end of 2021, an increase in income from other activities is projected.

The main reason for the 6,6 % increase in the cost of sales was growth in depreciation and amortization and expenses for the services of electric grid companies and for compensation of electricity losses in the grids due to an increase in the volume of electricity consumption. At the same time, the relative amount of electricity losses decreased by 0,12 p. p., which is the result of organizational and technical measures taken.

Due to the outstripping revenue growth rate over the cost price growth rate, EBITDA increased by 11,4 %. Net profit for the 1st quarter of 2021 increased by 39,7 % compared to the same period last year.

The Company’s total assets as of 31 March 2021 increased by 2,3 % and amounted to 133 356,6 mln RUB. The Company’s net assets increased by 3,7 % and reached 60 753,5 mln RUB. The net debt³ amounted to 41 121,7 mln RUB (as of 31 December 2020 — 44 261,5 mln RUB).

The Company’s statements for Q1 2021 can be found at: https://mrsk-1.ru/en/information/statements/rsbu/2021/.