Key Results in the Reporting Period

RUB million unless otherwise stated

Notes:

EBITDA: Earnings Before Interest + Depreciation and Amortization + Lease Interest + Loss from Revaluation of Revaluation of Fixed Assets
The connected capacity equals permanent grid connection (net of generation).

“Amid the COVID-19 pandemic and high air temperatures unusual for the region in the autumn and winter period, the Company focused its operations on maintaining stable financial and economic performance achieved by the Company. “Rosseti Lenenergo”, PJSC, worked consistently throughout the year to optimize its credit portfolio, reduce operating expenses, and improve the structure of other income and expenses. These efforts allowed us to maintain our financial performance flat year-on-year while keeping our leverage low”.

Aleksey Polinov
Deputy CEO for Economics and Finances, Rosseti Lenenergo, PJSC

Notes to the Financial Results

Rosseti Lenenergo posted a revenue of RUB 82,708 million, including:

Electricity distribution revenue totaled RUB 75,897 million, up by RUB 201 million or 0.3%year-on-year due to higher tariffs.

Grid connection revenue totaled RUB 6,350 million, down by RUB 243 million or 3.7% year-on-year due to lower grid connection volumes in 2020.

Operating expenses totaled RUB 61,609 million, up 1.0% (or RUB 590 million) year-on-year, mainly caused by an increase in expenses for depreciation of fixed assets, intangible assets (“IA”) and right-of-use assets ("ROU") due to the commissioning of fixed assets and receipt of IA and ROU in 2020.

Rosseti Lenenergo’s net profit for the reporting period increased by RUB 43 million or 0.4% year-on-year, mainly due to a decrease in the allowance for expected credit losses, including that created in 2019 for expected losses from illegal consumption.

The company’s EBITDA for the reporting period totaled RUB 34,929 million, up 2.3% year-on-year, mainly due to a decrease in the allowance for expected credit losses.

Principal Balance Sheet Figures

RUB million unless otherwise stated

Notes:

Net debt is calculated as long-term and short-term loans and borrowings (including outstanding interest), less cash and cash equivalents and short-term financial investments.

ROE is calculated as (Net Profit for 12 months / Equity) * 100

As at December 31, 2020, Rosseti Lenenergo’s assets totaled RUB 219,476 million, up 2.3% year-on-year. The change in assets is mainly due to the implementation of the Group’s investment program. In 2020, net assets grew to RUB 6,591 million (up 4.8%).

Return on equity (ROE) as at December 31, 2020 was 8.3%. The year-on-year decrease by 0.3 pp was driven by a 0.4% increase in net profit of Rosseti Lenenergo, PJSC, for 2020, while equity grew by 4.8%.

Net debt of Rosseti Lenenergo as at December 31, 2020, totaled RUB 29,532 million, up 32.0% year-on-year. The increase in net debt is mainly due to a higher share of long-term targeted financial investments.

As at December 31, 2020, Net Debt/EBITDA of Rosseti Lenenergo stood at 0.85x, compared to 0.66x as at end-2019.