The Board of Directors of PJSC “MOESK” approved the business plan for 2016

On December 10, 2015 the Board of Directors of PJSC “MOESK” approved the Business plan including the investment program and information on the key operational risks for 2016.

A draft of an adjusted investment program of the Company for 2017-2021 and estimated figures of the Business plan for 2017-2020 will be considered at a meeting of the Board of Directors in Q1 2016 taking into account decisions on the tariffs and revision of the net electricity supply figures.

The Business plan of the Company for 2016 includes the investment program approved by Order of the Ministry of Energy of the Russian Federation No. 735 dated 16.10.2014.

Against the background of restriction of the tariffs growth and inflationary pressure on the prime cost and reduction in electricity consumption, in 2016 PJSC “MOESK” expects increase in EBITDA operating revenue to RUB 45.4 billion (+ 10.9% from the expected actual figure for 2015 and net profit to RUB 9.7 billion (+5.3% of the expected actual figure for 2015. This result is planned to be achieved through successful implementation of the programs on reducing the operating costs and electric power losses.

As a part of the further works on reduction of losses, in 2016 it is expected that the losses will be reduced down to 6.8 billion kWh (- 10.3% of the expected actual figure for 2015.

The Company plans 25% of the net profit in the form of dividends for 2016 according to the approved Business plan continuing the practice of previous years (if there is a positive resolution of the General Meeting of Shareholders of PJSC “MOESK” on their payment).

Indicator	UOM	Expect. actual figure for 2015	Plan 2016
Revenue (total)	RUB million	132,897	143,966
from electric power transmission	RUB million	120,263	132,158
from grid connection	RUB million	11,287	10,000
from other activities	RUB million	1,347	1,808
Prime cost (total)	RUB million	116,524	125,584
Non-controllable costs, including:	RUB million	84,571	91,534
purchased electricity for loss compensatio	RUB million	13,467	13,777
services of PJSC FGC UE	RUB million	14,979	16,401
Services of regional grid companie	RUB million	31,894	35,079
Controllable costs	RUB million	31,953	34,050
EBITDA	RUB million	40,967	45,421
Net profit	RUB million	9,224	9,717
Debt on loans and credits	RUB million	73,417	78,708
Debt/EBITDA		1.8	1.7