Ready, Steady, · • Consolidation of OGK-2 and OGK-6 will be performed in partnership with leading investment banks in a transparent process 16 Gazprom is an effective

Ready, Steady, <Go>Ready, Steady, <Go>

Gazprom Energy Day 2010

Denis Fedorov

General Director, Gazprom Energoholding

September 2010

The information contained herein has been prepared using information available to Gazprom Energoholding (or the Group) at the

time of preparation of the presentation. External or other factors may have impacted on the business of Gazprom Energoholding

and the content of this presentation, since its preparation. In addition all relevant information about Gazprom Energoholding may

not be included in this presentation. No representation or warranty, expressed or implied, is made as to the

accuracy, completeness or reliability of the information.

Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be

incorrect. Forward looking statements, by the nature, involve risk and uncertainty and Gazprom Energoholding cautions that actual

Disclaimer

22

incorrect. Forward looking statements, by the nature, involve risk and uncertainty and Gazprom Energoholding cautions that actual

results may differ materially from those expressed or implied in such statements. Reference should be made to the most recent

Annual Report for a description of the major risk factors.

This presentation does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any

solicitation of any offer to purchase or subscribe for, any shares in Gazprom Energoholding, nor shall it or any part of it nor the fact

of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.

2009 Results Highlights

2008 2009 Change, %

Electricity output, bn kWh* 179,8 164,6 -8

Heat output, mln. Gcal 94,4 99,1 5

Revenue, bn RR 211,2 236,6 12

EBITDA, bn RR 11,8 30,5 159

In spite of difficult economic conditions, the Group’s generating

companies demonstrated strong operating and financial results1:

Consolidation of Assets Maintenance of Strong Results

Achieved controlling stakes in 4 generating companies.

Company 2008 2009

OGK-2 44,5% 50,3%

OGK-6 42,9% 50,3%

Mosenergo 53,5% 53,5%

TGC-1 28,7% 51,8%

3

EBITDA, bn RR 11,8 30,5 159

Investment Program of the generating companies was approved. Main

characteristics of the Program are the following1:

According to Government resolution #238 dated 13.04.2010 price

characteristics for the long-term capacity market have been

defined. These include:

� Calculated capital expenditures for capacity commissioning

� Calculated service expenses

� Calculated payback period

� Basic level of the rate of return on invested capital

Total installed capacity, GW 8,9 2

- commissioned, GW 1,86

Total cost, bn RR 365,5

- financed, bn RR 153,9

(1) Group’s company data.

(2) Excluding Kaliningrad TTP-2.

Launch of the Long-term Capacity MarketApproval of Investment Program

TGC-1 28,7% 51,8%

* Due to decrease in electricity consumption in the Russian Federation.

Core generating assets

100%

Structure of the Group’s Energy Assets

53,5% 51,8% 50,3% 50,3%

4

Non-core generating assets

FSK UES of

RussiaTGC-5 OGK-5

Inter RAO

UES

MRSK

Holding

RAO Far East Energy

Systems

3,7% 5,0% 5,3%10,5%10,5%8,5%

53,5% 51,8% 50,3% 50,3%

Gazprom Energoholding – a Large Power Generation

Player in Russia and the World

1Installed Capacity of the World’s Largest

Generating Companies, GW 1

Installed Capacity of Russian Generating

Companies, GW 1

135

9573 73 64

50 44 43 40 39 39 3620

36

25,4 24,219,5

11,9 9,9 9,1 8,7 8,7 8,6 8,4 6,3 5,9 4,4 3,4

5

619

407320 296 268

187 186 185 165 143 13783 81

1

(1) Company 2009’ annual reports

Electricity Output by the Group’s

Companies, bn kWh 1

Electricity Output by the World’s Largest Generating

Companies, bn kWh 1

Mosenergo61,7

TGC-126,7

OGK-247,2

OGK-629,0

1H 2010 Operating and Financial Results

Improvement of Operating and Financial Results Electricity Output, bn kWh 1

� The company successfully overcame the recession period

� Actual 1H 2010 operating and financial results were higher than

expected

� Positive dynamics are expected in the future

Total 83,3 Total 86,0 Total 85,4

6 m 2009 6 m 2010 6 m 2010 Plan

32,2 31,9 31,5

14,2 14,4 13,5

23,8 23,3 23,7

13,1 16,4 16,7

6

6 m 2009 6 m 2010 6 m 2010 Plan

9,7 10 8,2

4,7 5,6 4,5

2,1 3,1

2,3

4,1 2,1

1,8

6 m 2009 6 m 2010 6 m 2010 Plan

59,774,7 68,8

21,2

27,223,0

19,4

24,921,8

20,4

22,722,6

Total 136,2

Revenue, bn RR (IFRS) 1 EBITDA, bn RR (IFRS) 1

(1) Group’s company data

Total 120,7

Total 149,5 Total 20,6 Total 20,8

Total 16,8

6 m 2009 6 m 2010 6 m 2010 Plan

Gazprom Group is Russia’s Most Responsible Investor in

Power Generation

ЭComplete and Timely Execution of Investment

ProgramInstalled Capacity of the Program, GW 1

� Investment Program will be fully executed within the specified

time-frame

� All changes are economically reasonable and have been

formally approved

� The Group held first place in Russia for capacity

commissioning in 2008-2009

� As of 2Q2010 38.6% of the Program has been financed

(1) Excluding Kaliningradskaya TPP-2.

8,9

1,86

Program Total

Commissioned as of 30.06.10

7

(1) Group’s company data

Cost of the Program, bn RR 1The Group’s Share in Russian Capacity

Commissioning in 2008-2009, MW 1

In 2010 the Group plans to install circa 2 GW of capacity

(1) Excluding Kaliningradskaya TPP-2.

GEH

57%

Other

generating

companies

43%

365,5

153,9

Program Total

Financed as of 30.06.10

Long-Term Capacity Market

Main Price Characteristics

According to Government Resolution #238 dated 13.04.2010 the

following main price characteristics for capacity under Power Supply

Agreements have been established:

Calculated capital expenses for

capacity installation, thousand

RR / kW

� 28,8-41,9 for gas generation

�49,2-53,5 for coal generation

Calculated maintenance

expenses, thousand RR / MW

� 80 for gas generation

Share of Capacity under Power Supply

Agreements in Revenues from Capacity Sales, %

2008 2009

88,164,4

11,935,6

Mosenergo

New capacity

Old capacity

8

expenses, thousand RR / MW

monthly�123 for coal generation

Calculated maintenance expenses are subject to

annual indexation

Share of capital expenditures

compensated by capacity sales,

%

� 71-79 for gas generation

�80 for coal generation

The remaining part is compensated by the sale of

electricity

Basic level of invested capital

rate of return, %

� 15 for the capacity suppliers that did not issue

additional shares

� 14 for the remaining capacity suppliers

Calculated payback period 10 Years

2008 2009

2008 2009

96,384,4

3,7

15,6

TGC-1

New capacity

Old capacity

Established price characteristics of Power Supply Agreements give

advantages to generating companies and allow capital expenses to be

paid back in a reasonable period of time

Main Strategic Directions for Gazprom Energoholding

Development

Execution of Investment Program Reliability and Efficiency of Electricity

Production

� The Ministry of Energy forecasts growth of electricity demand

in Russia

� Increasing demand underlines necessity of new capacity

commissioning

� The Group plans to increase installed capacity from 36 GW to

44,8 GW (1) by 2020

� An increased level of production reliability will be

proven as the number of accidents decrease

� Production efficiency will be shown via

performance, high operating results and an increase in

energy efficiency

9

Business Architecture DevelopmentImprovement of Management Efficiency

� Administrative measures to centralize the management

system will be performed at the Gazprom Energoholding

level

� Implementation of the management system based on the

world’s best practices will allow GEH to improve operating

management efficiency

� Consolidation of the current assets

� Consolidation of OGK-2 and OGK-6 2

� Transition to the unified share

� Gazprom Energoholding IPO

(1) Excluding capacity decommissioning

(2) Corporate decisions on the consolidation are being discussed

2000

Investment Program Execution

Electricity demand, bn kWh 1

Planned Increase of Installed Capacity under

Capacity Delivery Contracts (DPM), GW

Cost of the Investment Program, bn RR

11,9

13,5

Total 44,8 *

Total 36

Financed153, 942 %Amount to be

financed211, 658 %

Total 365, 5 bn RR

10

980 994

1151

1388

1619

1860

9851127

12881419

1553

1197

1426

1710

800

1100

1400

1700

2000

2006 2010 2015 2020 2025 2030

Maximum

Basis

General scheme (4,1 %)

The Russian Ministry of Energy forecasts growth in electricity demand. Increasing demand underlines the necessity of new

capacity commissioning

(1) According to data from the Ministry of

Energy, July 2010

Current installed capacity Planned installed capacity

9,110,6

8,7

10,6

6,3

7,8

2,3

* Excluding capacity decommissioning

Reliability and Efficiency of Electricity Production

• Prioritize safety and ensure efficiency during production planning and allocation of investments to new construction and the

refurbishment of generating assets

• Prioritize efficient use of energy resources.

• Systematic approach to increasing energy efficiency and ecological safety - correlation between targets, programs and

execution methods

Energy efficiency is one of the measures to increase production efficiency

Fuel rate

11

Current equipment:

• The fuel rate will decrease with the

modernization of equipment

•Power Supply Agreements for modernized

objects have a big role in power sector

development

Production efficiency increase is expressed through operating results improvement

Novocherkasskaya GRES:

Fuel rate – 324 gr/kWh

Commissioning year – 2014

Kirishskaya GRES:


Commissioning year – 2011

Novocherkasskaya GRES:


Kirishskaya GRES:

Fuel rate - 348 gr/kWh

After modernization:

(1) For the new energy block CCGT-800

Centralization of corporate functions at a corporate centre level and service centre level

Implementation of long-term planning with unified standards and a unified long-term financial model

Improvement in Management Efficiency

12

Analysis, systematization and distribution of best practice among generating companies

Implementation of a unified ERP - system (SAP)

Business Architecture Development

Transition to

IPO

Gazprom Energoholding has

completed the first stage at this point

13

Consolidation of current assets

Consolidation of OGK-2 and OGK-6

Transition to unified share

Each stage of the business architecture is aimed at increasing the Company’s value

Consolidation of OGK-2 and OGK-6

OGK-2 and OGK-6 consolidation

will allow the joint company to

become one of the largest power

generation companies in Russia

Expected installed capacity after consolidation of OGK-2 and OGK-6

0

5

10

15

20

25

30

25,3 23,2

9,111,9 9,9 8,7 8,6 8,5 7,5

8,7

(1)

Installed capacities of Russia’s largest generating

companies as of May 2010, GW

14

Corporate decisions upon this consolidation are being discussed.(1) Total installed capacities of Inter RAO UES stations, excluding OGK-1.

Increase of

business scope

Synergy

• OGK-2 and OGK-6 have a mutually complementary geographic position of assets:

– The joint company will be represented in most of Russia’s Unified Energy Systems

– Enhanced positions in Unified Energy Systems of the North-West and South of Russia

• Reduction of general administrative and managerial expenses as a result of economies of scale and

elimination of overlapping functions

• Centralization of purchases, including fuel purchases

• Centralized planning and implementation of a joint Investment Program

• Introduction of consistent corporate governance standards

Key Results

Gazprom’s presence in power generation is one of the necessary conditions to achieving leadership in

the global energy markets

Gazprom Group’s strategy in power generation is based on a long-term Program aimed at

improvement of production and management efficiency as well as market capitalization growth

15

As a result of asset consolidation, Gazprom Energoholding has become the largest generation

company in Russia in terms of installed capacity and financial results

The target structure for Gazprom Energoholding is a vertically integrated generation company with

a single operating centre and a presence throughout the production chain

This model will improve operating efficiency and significantly reduce costs, which is one of the

factors affecting market capitalization growth. Another key growth driver is the execution of M&A

projects and the commission of new efficient capacities in both Russia and abroad

Market Concerns regarding Gazprom as the Major

Shareholder

Market Concerns Mitigating concerns

• According to Government Resolution gas is

sold to Gazprom Energoholding companies at

prices established by the Government

• Gas sales to Gazprom Energoholding

companies are at a higher price

• Gazprom does not account for minority

shareholder interests• Consolidation of OGK-2 and OGK-6 will be

performed in partnership with leading

investment banks in a transparent process

16

Gazprom is an effective and responsible owner, which is interested in the market capitalization

growth of Gazprom Energoholding companies

• The Group’s companies have the advantage of access to

debt financing

• Execution of investment liabilities is guaranteed by main

shareholder

• Operating efficiency improvement

• Gas supplies are guaranteed and stable

Advantages of Gazprom being the Major Shareholder

Appendix

17

TGC-1(1/2)

Description

Asset Details

Shareholder structure

� TGC-1 is a key power generation company and supplier of electricity and heat in the Northwestern

Federal District

� The company operates in 4 regions of the Russian Federation: Saint-Petersburg, Leningrad and

Murmansk regions and the Republic of Karelia.

� TGC-1 includes 55 power generation stations. Generating assets consist of power generation

stations of different types: heat, hydro, diesel and combined. Share of Hydro Power Plants in total

electricity output is about 50%.

� Number of employees – more than 9 thousand people.

� Average year of capacity commissioning – 1973.

Station Elecricity capacity MW Heat capacity

Gcal/h

Commissioning

year

Location of Assets

Kolskiy branchMurmansk TPP

51,8%

25,7%

22,6%

GEH

Fortum Power and heat

Others

18

Source: Group’s companies data

Centralnaya TPP 78,5 1 414 1897

Pravoberezhnaya TPP-5 244 1 432 1922, 2006

Vasileostrovskaya TPP-7 85 1 084 1932,2009

Pervomayskaya TPP-14 330 1638 1957

Yuzhnaya TPP-22 800 2 250 1978

Avtovskaya TPP-15 321 1 833 1956,2007

Vyborgskaya TPP-17 255 1 060 1954

Severnaya TPP-21 500 1 185 1975

Dubrovskaya TPP-8 192 185 1933

Narvskaya TPP 125 - 1955

Cascade of Vuoksinskiye HPPs 195 - 1949,2009

Cascade of Ladozhskiye HPPs 342 - 1926-1956

Luzhskaya HPP-2 0,5 - 1954

Petrozavodskaya TPP 280 689 1976

Cascade of Vygskiye HPPs 240 - 1956-1967

Cascade of Kemskiye HPPs 330 - 1967-1991

Cascade of Sunskiye HPPs 51 - 1929-1954

The group of small HPPs 12 - 1903-1947

Diesel Power plant 2 - 2005

Cascade of Nivskiye HPPs 578 - 1934-1964

Cascade of Tulomskiye HPPs 324 - 1937-1965

Cascade of Pazskiye HPPs 188 - 1950-1970

Cascade of Serebryanskiye HPPs 512 - 1970-1987

Apatitskaya TPP 323 735 1959

Murmanskaya TPP 12 1 111 1934

TGC-1 6 315 14 362

Karelskiy branch

� Electricity capacity – 915 MW

� Heat capacity – 689 Gcal/h

Kolskiy branch

� Electricity capacity – 1 912 MW


Nevskiy branch

� Electricity capacity – 3 427,8 MW

� Heat capacity – 12 073 Gcal/h

Murmansk TPP



electricity, g per kWh

heat,kg per Gcal

301139

TGC-1(2/2)

Main operating results Fuel Balance and Rate

Gas

89%

Fuel oil

7%

Coal

4%

Main Operating Results

26,1 26,9 26,826,7 26,3 26,9

41,9%48,9% 49,8%

0%10%20%30%40%50%60%70%80%90%100%

25.6

25.8

26.0

26.2

26.4

26.6

26.8

27.0

2007 2008 2009

Electricity output, bn kWh

Heat output,mln Gcal

Installed capacity utilization factor, %

19

Main financial results Investment Program

Project Capacity (increase),

MW

Commissioning

date

Lesogorskaya HPP-10 6 31 December 2011



Pervomayskaya TPP-14 180 1 July 2010

Pervomayskaya TPP-14 180 1 July 2011

Pravoberezhnaya TPP-5 450 31 December 2012

Svetogorskaya HPP-11 7,25 31 December 2010



Centralnaya TPP 100 31 December 2015

Yuzhnaya TPP-22 450 31 December 2010

Main Financial Results

Source: Group’s companies data, RSA financial statements

26,2 31,1 38,42,3 2,8

7,6

0,1 0,23,4

8,8%

9,0%

19,8%

0%

5%

10%

15%

20%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

2007 2008 2009

Revenue, bn RR EBITDA, bn RR

Net profit, bn RR EBITDA margin, %

Mosenergo(1/2)

� Mosenergo is one of the largest regional generating companies in Russia

� Power plants of OJSC Mosenergo supply about 70% of electricity consumed in Moscow

region and 66% of heat consumed in Moscow

� OJSC Mosenergo includes 15 Power Plants

� Number of employees – more than 13 thousand people

� Average year of capacity commissioning - 1985

Station Elecricity capacity MW Heat capacity Gcal/h Commissioning

year

Description

Asset Details

Shareholder Structure

Location of Assets

53,5%

26,5%

20,1%

GEH

Moscow property Department

Others

20

HPP-1 95 951 1897

GRES-3 604 480 1914

TPP-8 605 2 192 1930

TPP-9 210 560 1933

TPP-11 330 1 011 1931

TPP-12 418 2 031 1941

TPP-16 360 1 484 1945

TPP-17 192 712 1950

TPP-20 730 2 400 1952

TPP-21 1 800 4 958 1964

TPP-22 1 310 3 606 1960

TPP-23 1 420 4 530 1966

TPP-25 1 370 4 088 1976

TPP-26 1 420 3 986 1979

TPP-27 1 060 1 876 1996

Mosenergo 11 924 34 865

Mosenergo

• Electricity capacity – 11 924 MW



Mosenergo(2/2)

Main Operating Results Fuel Balance and Rate

Gas98%

Fuel oil0,6%

Coal1,4%


heat,kg per Gcal

245 166

63,7 64,3 61,765,6 62,4 65,4

68% 65%59%

0%10%20%30%40%50%60%70%80%90%100%

59.0

60.0

61.0

62.0

63.0

64.0

65.0

66.0

2007 2008 2009




21

ProjectCapacity (increase),

MWCommissioning date

TPP-12 220 31 December 2013

TPP-16 420 31 December 2013

TPP-20 420 30 November 2014

TPP-26 420 30 November 2010

TPP-9 61,5 30 June 2012


Main Financial Results Investment Program

78,0 94,4 112,16,2 8,1

17,8

0,7 1,4 4,5

7,9%

8,6%

15,9%

0%

5%

10%

15%

20%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2007 2008 2009



OGK-2(1/2)

Serovskaya GRES


� About 70% of generating capacity of OGK-2 is located in the Ural Federal District.

�OGK-2 includes 5 Power Plants situated in Pskovskaya (Pskovskaya

GRES), Sverdlovskaya (Serovskaya GRES), Chelyabinskaya (Troitskaya), Stavropolskiy

(Stavropolskaya GRES) and Khanty-Mansiyskiy (Surgutskaya GRES) regions.

�2nd place for installed capacity utilization factor among other OGKs.

�Number of employees – about 5 thousand people

�Average year of capacity commissioning– 1975.

(1) 99% of OJSC Centrenergoholding is owned by Gazprom Energoholding

Description

Asset Details


Location of Assets

50,3%

49,7%

OJSC Centrenrgoholding, MRG Ltd

Others

1

22

Pskovskaya GRES





Stavropolskaya GRES



TroitskayaGRES



Surgutskaya GRES-1



Station Electricity

capacity, MW

Heat

capacity

Gcal/h

Commissio

ning date

Pskovskaya GRES 430 121 1993

Stavropolskaya GRES 2 400 145 1975

Troitskaya GRES 2 059 315 1960

Serovskaya GRES 538 110 1954

Surgutskaya GRES-1 3 280 958 1972

OGK-2 8 707 1 649


OGK-2(2/2)


Gas

76%

Fuel oil

0,3%

Coal

23,7%


heat,kg per Gcal

347152

48,0 49,8 47,22,5 2,5 2,4

63% 65% 62%

0%10%20%30%40%50%60%70%80%90%100%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2007 2008 2009




23



Troitskaya GRES 660 30 November 2014

Serovskaya GRES 420 30 November 2014

Stavropolskaya GRES 420 30 November 2016

Adlerskaya TPP 180 31 October 2012

Adlerskaya TPP 180 31 December 2012



33,8 40,5 40,31,2-0,3

3,6

0,0 -1,41,7

3,6% -0,7%

8,9%

-5%

0%

5%

10%

15%

20%

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

2007 2008 2009



OGK-6(1/2)

� About 40% of generating capacity of OGK-6 is located in Unified Energy System Centre

� OGK-6 includes 6 GRES and operates in the following regions: Rostovskaya (Novocherkasskaya

GRES), Leningradskaya (Kirishskaya), Ryazanskaya (Ryazanskaya GRES), Vologodskaya

(Cherepovetskaya GRES) and Krasnoyarskaya (Krasnoyarskaya GRES-2)

� Holds the 1st and 2nd places among other OGKs for installed electrical and heat capacity

respectively

� Number of employees – more than 6 thousand people

� Average year of capacity commissioning– 1975.

Description

Asset Details


Location of Assets

50,3%

9,6%

40,1%OJSC Centrenergoholding

OJSC FSK UES

Others

24

Cherepovetskaya GRES



Kirishskaya GRES



Ryazanskaya GRES



Novocherkasskaya GRES



KrasnoyarskayaGRES-2



Station Electricity

capacity, MW

Heat capacity

Gcal/h

Commissioning

date

Kirishskaya GRES 2 100 1 234 1965

Cherepovetskaya GRES 630 39 1976

Ryazanskaya GRES 3 070 180 1974

Novocherkasskaya GRES 2 112 75 1965

Krasnoyarskaya GRES-2 1 250 1 176 1961

OGK-6 9 162 2 704


OGK-6(2/2)


Gas51%

Fuel oil1%

Coal48%

electricity, g per kWt/h

heat,kg per Gcal

366

152

34,1 38,9 29,04,3 4,4 4,4

43%49%

37%

0%

10%

20%

30%

40%

50%60%

70%

80%

90%

100%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

2007 2008 2009




25



Kirishskaya GRES 540 30 November 2011

Novocherkasskaya GRES 330 30 November 2014

Cherepovetskaya GRES 420 30 November 2014

Ryazanskaya GRES 60 30 November 2014

Novocherkasskaya GRES 36 31 December 2012



35,3 42,3 41,9

4,41,6

5,1

1,9 0,82,8

12,5%

3,8%

12,2%

-5%

0%

5%

10%

15%

20%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

2007 2008 2009



Documents

Ready, Steady, · • Consolidation of OGK-2 and OGK-6 will be performed in partnership with leading investment banks in a transparent process 16 Gazprom is an effective