According to the prepared in accordance with the Russian Accounting Standards statements for 9 months of 2022, revenue of Rosseti Centre, PJSC (the ticker - MRKC) was 77 404,1 mln RUB, including from electric energy transmission – 73 409,2 mln RUB, from grid connections – 1 475,7 mln RUB, from sale of electric energy and power – 426,7 mln RUB and other revenue – 2 092,5 mln RUB. Sales profit1 was 9 609,0 mln RUB. Earnings before interest, taxes, depreciation and amortization (EBITDA2) reached 16 833,3 mln RUB, EBITDA margin increased against the same period last year and was 21,7%.

Data in million RUB, unless specified otherwise

^[1] Revenue net of cost of sales, selling and administrative expenses

^[2] EBITDA is calculated as follows: Profit before tax + Interest payable + Depreciation

^[3] Net debt is calculated as follows: long-term borrowed funds + short-term borrowed funds – 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 in the service area of JSC Transservisenergo

The volume of services for the transmission of electricity remained at the level of the same period in 2021 and amounted to 35 004,4 million kWh. The level of electricity losses increased by 0,33 p.p. and amounted to 9,66%. The main reason for the increase in the level of losses is the change in the structure of the grid in connection with the consolidation of JSC “LGEK” from 1 October 2021. In comparable conditions in 2021, the losses are 9,17%, which is 0,16 p.p lower than the base period.

Revenue for electricity transmission services following the results of 9 months of 2022 increased by 3,1% against the same period of 2021 due to increase in the tariff for electricity transmission from 1 July 2022. Revenue from grid connection services following the results of 9 months of 2022 increased by 112,7% against the same period of 2021 in connection with the execution of contracts for the connection of large enterprises in the regions of operation. Other revenue for 9 months of 2022 increased by 14,5% and amounted to 2 092,5 mln RUB. The growth of the other revenue is due to the implementation of large-scale projects for performance of construction and installation works for installation of outdoor lighting networks and works for improvement of public space in branches of the Company’s service area.

The growth in the cost of sales was restrained by a fall in the costs of services of distribution grid companies, along with an increase in the cost of purchased electricity to compensate for losses, which ultimately led to an increase in the cost of sales by 0,7% (up to 66 451,9 mln RUB).

The EBITDA² indicator increased by 8,0% and amounted to 16 833,3 mln RUB. The net profit grew up by 3,6% to 3 571,0 mln RUB.

The Company’s total assets as of 30 September 2022 increased and amounted to 135 513,3 mln RUB. The Company’s net assets grew up by 4,0% and amounted to 55 650,2 mln RUB. The net debt³ decreased to 35 819,4 mln RUB (as of 31 December 2021 – 38 826,6 mln RUB).

The Company’s statements for 9 months of 2022 can be found at: https://www.mrsk-1.ru/information/statements/rsbu/2022/.