Company Announcements

Rosseti FGC UES (FGC UES, PJSC) Announces

IFRS Results for 2020

Moscow, March 26, 2021 - Federal Grid Company of Unified Energy System ("Federal Grid Company" or "Company"; Moscow Exchange and LSE: FEES), part of PJSC ROSSETI Group, and the operator of the Unified National Electricity Grid ("UNEG") of Russia, announces its audited consolidated financial results for the year ended 31 December 2020 under the International Financial Reporting Standards (IFRS).

The financial results relate to Federal Grid Company and its subsidiaries (the "Group of Companies" or "Group").

Financial results:

·    Revenue: RUB 237.3 billion (2019: RUB 249.6 billion)

·    EBITDA adj.[1]: RUB 133 billion (2019: RUB 136.2 billion)

·    Net profit: RUB 59.4 billion (2019: RUB 86.6 billion)

·    Net profit adj. [2]: RUB 69.4 billion (2019: RUB 82.2 billion)

Operational performance highlights[3]:

·    Electricity supply from UNEG consumers: 535.7 billion kWh (2019: 558.7 billion kWh)

·    Total transformer capacity[4]:  352 GVA (2019: 353 GVA)

·    Transmission grid length⁴: 149 thousand km (2019: 148 thousand km).

·    Number of substations (UNEG)⁴: 889[5] units (2019: 951 units)

Key events:

·     Bonds of RUB 10 billion were placed with a coupon rate of 6.75%, term to offer - 10 years;

·     Bonds of RUB 10 billion were placed with a coupon rate of 6.5%, term to offer - 5 years;

·     The annual general meeting of PJSC FGS UES's shareholders resolved to delegate the powers vested in company's sole executive body to the Managing Company of PJSC ROSSETI.

·     The credit ratings of Rosseti FGC UES on the international scale from S&P, Moody's and Fitch rating agencies have been retained at the sovereign level; the national rating agency ACRA has confirmed the rating at the maximum level of AAA (RU);

·     In October 2020 Rosseti successfully closed the order book for exchange bonds "Rosseti FGC UES" with a coupon rate of 6.60% in the amount of RUB 10 billion;

·     The Energy Management System audit performed by the experts of DQS Holding, one of the world's major certification bodies, was successfully completed;

·     The adjusted investment program of Rosseti FGC UES has been adopted for 2020-2024.

Financial results:

The performance for 2020 showed that the Group was in a good financial standing.

The main factors which affected the dynamics of the financial indicators:

-    decrease in revenue from services of technological connection to grid is associated with the service schedule determined by consumers' applications;

-    reduction in irregular revenues in the form of penalties entered into the books under execution writs;

-    increase in operating expenses, mainly due to the increase in depreciation charges as a result of the introduction of new capacities and the implementation of measures taken to prevent the spread of COVID-19;

-    recognition of losses from impairment of fixed assets due to the presence of impairments indicators.

The total assets of Federal Grid Company increased by RUB 49.9 billion (+3.9%) compared to the beginning of the year and amounted to RUB 1 340.2 billion at the end of the reporting period. Non-current assets stood at RUB 1 225.7 billion, while current assets equaled RUB 114.4 billion.

Federal Grid Company's audited consolidated IFRS financial statements for the year ended December 31, 2020 are available on the Company's corporate website at

https://www.fsk-ees.ru/eng/investors/financial_disclosure/ifrs_financial_reports/

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