IDGC of Centre has published consolidated financial statements for 2013 under IFRS. The Company’s revenue was 93,3 bln RUB, including from transmission of electric energy — 61,4 bln RUB, from resale of electric energy and power — 29,8 bln RUB, from electricity grid connections — 1,1 bln RUB and other revenues — 1,0 bln RUB. Operating profit amounted to 3,4 bln RUB, EBITDA1 amounted to 11,3 bln RUB, profit for the period — 266 mln RUB.

Data in billion RUB, unless specified otherwise

[1] EBITDA is calculated as follows: profit for the period + profit tax + interest payable - interest receivable + depreciation charges;
[2] Adjusted EBITDA is calculated as EBITDA except for the provisions for impairment of accounts receivable;
[3] Adjusted profit for the period is calculated as Profit for the period except for the provisions for impairment of accounts receivable and related deferred income tax on profits.

In 2013 in accordance with Orders of the Ministry of Energy of Russia "On the transfer of the functions of a supplier of last resort" IDGC of Centre were transferred to the functions of a supplier of last resort in the Bryansk, Orel, Kursk, Tver and Smolensk regions. Thus, in addition to providing services for the transmission of electricity, some subdivisions of the Company during the reporting period began to provide services for sale of electric energy, including purchase of electricity in the wholesale market and its sale in the retail market, conclusion of power supply contracts and sale and purchase agreements with all consumers, including with residential customers. Term of performance of the functions of a supplier of last resort was established until the date of entry into force of the decision on granting the status of a supplier of last resort for the winner of a tender for the status of a supplier of last resort in the above regions of IDGC of Centre, but not longer than 12 months. In February 2014 according to the decision of the Ministry of Energy of Russia the function of an electricity supplier of last resort in the Orel region was transferred from the Company to a subsidiary of OJSC "INTER RAO UES". In April 2014 in accordance with the decision of the Ministry of Energy of Russia the function of an electricity supplier of last resort in the Kursk and Tver regions was also given to OJSC "AtomEnergoSbyt". Revenue from the resale of electric energy and power includes part of the proceeds in the amount of 13,8 bln RUB, related to the transmission of electricity sold within power supply contracts. Excluding the new activity IDGC of Centre’s revenue from electricity transmission for 12 months in 2013 amounted to 75,2 bln RUB, which is 11,4% more than in 2012 (67,5 bln RUB).

Operating costs of the Company for 2013 amounted to 91,2 bln RUB, which is 28,1 bln RUB more than the figure for 2012. The main factors of growth in expenses were the appearance in 2013 of the new article "Electric energy for resale" (14,5 bln RUB) in connection with performance of the functions of a supplier of last resort, as well as the provisioning of secured receivables (8,6 bln RUB). Of the total provision for impairment of receivables, recognized in 2013, the amount of 6,2 bln RUB relates to impairment of trade receivables from regional retail companies, which lost their status of a supplier of last resort, which led to the termination of their operations and insolvency. The remainder of the impairment loss is primarily attributable to differences with other regional retailers.

The Company’s EBITDA for the reporting period amounted to 11,3 bln RUB (15,2 bln RUB in 2012), profit for the period amounted to 266 mln RUB (4,6 bln RUB in 2012). Change in the financial results was mainly due to the allowance for doubtful debts for electricity transmission services of retail companies, deprived of the status of a supplier of last resort. Adjusted EBITDA in the reporting period amounted to 19,7 bln RUB, which is 26,3% more than in 2012 (15,6 bln RUB). Adjusted profit for the period in 2013 increased by 60,0% and amounted to 8,0 bln RUB (5,0 bln RUB in 2012). The difference between the balance sheet and adjusted indicators is explained by inclusion of the following non-cash transactions: provision for impairment of receivables and adjustment of deferred income tax.

As of December 31, 2013 assets of IDGC of Centre increased by 6,4 bln RUB to 96,0 bln RUB compared to the same period as of December 31, 2012 (89,6 bln RUB). Change in the assets was primarily due to an increase in fixed assets due to the commissioning of new equipment. Net debt4 reached 32,0 bln RUB (as of December 31, 2012 — 25,5 bln RUB). Increase in liabilities was due to the need to finance the investment program.

The consolidated financial statements of the Company can be found at: https://www.mrsk-1.com/en/information/msfo/