OREANDA-NEWS. On 23 April 2009 was announced, that the Board of directors of JSC OGK-5 recommended the General Shareholders’ Meeting of the company to approve its audited financial statements for 2008, prepared in accordance with Russian Accounting Standards (RAS).

Income Statement for 2008

Net Revenue totaled 42,846 million RUR, 9,382 million RUR higher than the figure posted a year earlier (+28%). The increase is mainly driven by the growth in net power output by 12% (from 36,481 to 40,729 GWh), due to the overall improvement of the power plants availability factor and utilization ratio, by the increase in the average sale price of energy and capacity and by a better sale mix (28.0% of sales on the Day Ahead Market on total sales).

Gross Profit stood at 4,044 million RUR, 1,504 million RUR higher than the same figure posted a year earlier (+59%).

Profit on Sales amounted to 3,440 million RUR, 1,367 million RUR higher than 2007 (+66%).

Net Financial Expenses totaled 156 million RUR, versus net financial revenues of 390 million RUR achieved in 2007. This change can be explained by the financing of the investments performed by the company during the year related to the construction of two new CCGT units at Sredneuralskaya and Nevinnomysskaya industrial sites, to the new dry ash removal system at Reftinskaya GRES, and to the modernization of the existing plants.

Net Result From Non-Operating Activities amounted to -1,040 million RUR versus -431 million RUR a year earlier. The change was mainly driven by non-recurring costs for 513 million RUR, mostly related to restructuring costs. Profit Before Tax totaled 2,244 million RUR, 212 million higher than 2007 (+10%)

Net Profit for the year totaled 1,563 million RUR, 241 million lower than the value posted in the previous year (-13%).

It is worth mentioning that in 2008 non-recurring income tax charges of 154 million RUR were booked by the Company. This was mainly attributable to the review of the tax value of fixed assets at Konakovskaya and Nevinnomysskaya power plants, merged into OGK-5 in 2006. Meanwhile non-recurring income tax revenues of 338 million RUR were booked in 2007. Without taking into account the effect of both one-off items, Recurring Net Profit surpassed 2007 level by 17%.

Balance Sheet as of 31 December 2008

Total Assets at the end of 2008 totaled 57,863 million RUR, 3,305 million RUR higher than the figure posted in the previous year.

Non-Current Assets totaled 47,741 million, 9,395 million RUR higher than the value achieved in 2007, due to the capital expenditure program carried out in 2008.

Current Assets totaled 10,121 million RUR, 6,090 million RUR less than the figure posted at the end of 2007. The decrease is mainly attributable to the use of funds raised trough the IPO to cover the financial needs related to the investment program of the Company.

Total Equity at the end of 2008 stood at 46,672 million RUR, 1,563 million RUR higher than the corresponding value at the year end 2007. The increase is due to the net profit for the year.

Total Liabilities stood at 11,191 million RUR, 1,741 million RUR higher than the figure posted a year earlier. The change is mainly driven by the increase of short-term borrowings (+1,864 million RUR) used to bridge long term financing to be formalized at the closing date.

Cash Flow Statement for 2008

Net Cash Flow From Operation in 2008 totaled 3,601 million RUR, 374 million RUR higher than the figure posted in the same period of 2007.

Net Cash Outflow From Investing Activities totaled 6,671 million RUR, 4,655 million higher than in 2007, due to a larger commitment of the Company in the execution of the investment program.

Net Cash Inflow From Financing Activities totaled 1,866 million RUR versus a net cash outflow of 533 million RUR in 2007.

The audit of 2008 Financial Statements prepared in accordance with Russian Accounting Standards has been carried out by KPMG, appointed as the auditor of JSC “OGK-5” for the year 2008 by the Annual General Shareholders’ Meeting of JSC “OGK-5” in May 2008.