TGC-1 releases unaudited interim consolidated Financial Statements for the 3 months period, ended March 31, 2017 prepared in accordance with International Financial Reporting Standards (IFRS).

_{* With account to Other operating income and Government subsidy.}

_{** EBITDA is calculated as Operating profit + Depreciation of PP&E + Amortization of intangible assets and investment property.}

Consolidated TGC-1 Group revenue for 3M 2017 increased by 2.1% year-on-year, up to RUB 25,776 mln.

Operating expenses for 1Q 2017 grew by 2.7% year-on-year, up to RUB 19,830 mln. Variable costs remained flat at RUB 13,932 mln. Fixed costs increased by 2.2%, up to RUB 4,049 mln.

TGC-1 operating profit increased by 0.3% year-on-year totaling RUB 5,946 mln. EBITDA amounted to RUB 7,974 mln, up by 3.8% year-on-year.

Profit for 1Q 2017 declined by 9.6% year-on-year, down to RUB 3,966 mln, mostly on the account of growing income tax.

Full TGC-1 3M 2017 results under IFRS are available at the corporate website in the “Reports” section.

About

TGC-1 is the leading producer of electricity and heat in the North-West region of Russia. It operates 53 electric generating stations in four regions of Russia: St. Petersburg, Republic of Karelia, Leningrad Oblast, and Murmansk Oblast.

TGC-1 installed electric capacity of the Company’s stations amounts to 6.95 GW and heating capacity of 14,53 thous. GCal/hr. Major shareholders are Gazprom Energoholding LLC (51.79 %) and Fortum Power and Heat Oy (29.45 %). Total headcount of the Company, including subsidiaries, totals circa 7 thousand.