Federal Grid Companyof Unified Energy System

Russia One-on-One Conference27-28 January, 2010

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Disclaimer

The information contained herein has been prepared by the Company. The opinions presented herein are based on generalinformation gathered at the time of writing and are subject to change without notice. The Company relies on information obtainedfrom sources believed to be reliable but does not guarantee its accuracy or completeness.

These materials contain statements about future events and expectations that are forward‐looking statements. Any statement in thesematerials that is not a statement of historical fact is a forward‐looking statement that involves known and unknown risks, uncertaintiesand other factors which may cause our actual results, performance or achievements to be materially different from any future results,performance or achievements expressed or implied by such forward‐looking statements. We assume no obligations to update theforward‐looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting thesestatements.

This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase anysecurities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed forany purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. Theinformation in this presentation is subject to verification, completion and change. The contents of this presentation have not beenverified by the Company. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of theCompany or any of its shareholders, directors, officers or employees or any other person as to the accuracy, completeness or fairness ofthe information or opinions contained in this presentation. None of the Company nor any of its shareholders, directors, officers oremployees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or itscontents or otherwise arising in connection therewith.

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Number of staff 22,500

Market cap RUR 390 bn (January ’2010)

The largest publicly traded electricity transmission company in the world*

Occupies an exclusive and unique market position in Russia. Competition‐free operation

Guaranteed return on investment due to the introduction of the new asset‐based tariff regulation (RAB)

Unique proposition for a lower risk investment in Russia

Outstanding growth opportunities through a RUR 519bn investment programme**

Considerable scope for management to enhance performance through greater operational and cost efficiency

Federal Grid Company Today

* By length of transmission lines and transformer capacity with the wattage of 220kW or higher. ** Investment program 2010‐2012

Who we are

Russian Federation 79.11%

Free Float: 20.89%

Regions covered by FGC

Key Financial Indicators (RAS) 2008 1H 2009

Revenue (RUR) m 68,485 41,209

EBITDA (RUR) m 29,412 24,804

Loans and credits (RUR) m 32,980 17,980

Overall length of lines, thousand km 118 118

Energy supply, KWh mln 472 219

Number of substations 757 757

Installed transformer capacity, MVA 286,185 296,404

Shareholding

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Leading Russian Blue-chip Company

Shares traded in Russia on MICEX and RTS, under the ticker FEES

GDRs traded internationally OTC (Over The Counter)

International listing on a major European stock exchange is currently being considered

Participant in MSCI Emerging Markets and MSCI Russia

12‐month share‐price performance to 21 Jan 2010 Source: MICEX, CB of Russia

Why Federal Grid Company?

Most liquid stock in the Russian electricity sector

Significant scope for revenue growth with the introduction of RAB regulation

Stable, guaranteed financial return

Good record of corporate governance

Company* Listing Market Cap ($bn) P/BV

FGC Moscow 12.8 0.56

RusHydroMoscow, London

10.8 0.72

Holding MRSK

Moscow 5.7 1.97

OGK-4 Moscow 3.8 1.41

Enel OGK-5 Moscow 3.0 1.34

3 * As of 21th January 2010

0,000

0,002

0,004

0,006

0,008

0,010

0,012

0,014

0,016

Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 22

0.000

0.002

0.004

0.006

0.008

0.010

0.012

0.014

0.016

Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 22

Last Price 0.0111High on 11/18/09 0.0138Average 0.0081Low on 02/05/09 0.00229

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Upgrading existing facilities, further improving equipment reliabilityReduction of energy loss in transmission system through the introduction of innovative technologiesStaff training

Transition to RAB tariff systemImprovement in operational efficiency Commitment to pay dividend

2010‐2012 Investment Programme, including construction of additional 8,419 km of transmission lines and 28,933 MVA of installed transformer capacity

Strategy

The electricity grid provides lifeblood to our society and economy. Federal Grid Company plays a vital role in ensuring the development and reliability of this system. We operate in a modern, regulated market environment, and are committed to delivering value to our shareholders and investors

MISSION

Focus on development

Ensuring seamless operations

Delivering value to shareholders

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Significant need for investment in the upgrading of Russia’s national power gridNew investment‐friendly regulatory frameworkTransmission accounts for only 5.5% of the price paid by consumer Comparatively low electricity prices in Russia

New Tariff Regulation: How The System Will Change

Operating expenses

Asset depreciation

CAPEX

Taxes and charges

Operating costs

Controlled by the Company

1 January 2010

Net Profit

Reserved for reinvestment and dividend

Depreciation of initial invested capital

Depreciation of newly invested capital

Controlled by Regulator

Return on initial invested capital

Return on newly invested capital

Compensates Operator for the incurred costs

Composition of the tariff‐based revenue:

Stimulates investment and operating efficiency

Composition of the tariff‐based revenue:

New Tariff System«RAB»

Regulatory Asset Base

Old Tariff System«Costs +»

Scope for increase intariff-based revenues

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Investment Program: Finance

From Government subsidies to market finance

Use of Government investment and proceeds from the sale of RAO UES assets for financing the investment program will be gradually phased out by 2012

The share of borrowing in the finance for the investment program will increase. This will take form of bonds and bank loans

Over the period 2010 – 2012 Federal Grid Company intends to borrow RUR 147bn which represents investment program

Investment Schedule

171186.3

162.1

Sources of Finance (2010-2012)

RUR Billion

Borrowing

Other sources

Subsidies v BorrowingRUR Billion

Source: The Company’s Data

Government funds + proceeds from RAO UES asset sale

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Transition To The RAB Tariff Regulation

2008 2009 2010 2011 2012 2013‐2018

3-year transitional period 5-year regulatory period

Regulator approves the RAB tariff

Return on initial invested capital: 3.9%

Return on initial invested capital: 5.2%

Return on initial invested capital: 6.5%

Return on newly invested capital: 11% p.a.

Initial invested capital for 2010 (initial RAB) – RUR 647.6bnAnnual regulatory rate of decrease in costs controlled by operator: 2.5%Period of return: 35 years

Return and costs to be agreed in 2012

Transition to RAB regulation approved by the Government

Federal Grid submits its tariff

proposals Transition to RAB

begins

Estimated 2010 tariff increase:

52.4%

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Investment Program: Where the money goes

Joint projects with regional governments

RUR 519bnTotal Investment Program 2010-2012

Federal program -Development of Technological and Information management

Provisions forthe capacity

of nuclear, hydro and thermal plants

77.7 71.530.9

29.817.9

15.386.3

2.6

105.8

81.5Upgrading grid facilities

in Moscow,St. Petersburgand Tyumen

Renewal of fixed assets – 105.8

Renewal of fixes assets

Other investmentprojects

Development of gridsnot participating in

Agreement with regional governments

Federal Developmentprogramme for the Sochi

Olympic Games

Technological connection

Investment Programto develop Russian Far East

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Investment Program: Scope and Scale

New major construction projects

Transmission lines (220kW, 330kW, 500kW, 750kW)

Transmission lines and substations

Connecting power unit № 2 (1000 MVt) of VolgodonskNuclear Power Plant to the grid

Completion in 2010To support infrastructure for increasing active power flow between UES Centre and North Caucasus

Connecting start-up facility (1000 MVt) of BoguchanskHydro Power Plant to the grid

Completion in 2010To support reliability of UES Siberia since Sayano‐Shushenskaya Hydro Power Plant is not operational

Supporting infrastructure for the Sochy 2012 Olympic Games

Completion by 2010‐12

Substation City2Completion in 2014To support infrastructure of Moscow International Business Centre “Moscow‐City”

Connecting power unit № 4 (1000 MVt) ofKalinin Nuclear Power Plant to the grid

Completion by 2012To support construction of Moscow’s 2nd “transport ring”Cover shortage of power supply in North West of Moscow region

Grid construction on the route Neryungrinskiy Hydro Power Plant -Nizhniy Kuranah - Tommot - Maiya

Completion in 2013Developing power supply in Yakutia region, support of “West Siberia‐Pacific Ocean” pipeline infrastructure (Transneft’s project)

Grid construction on the route Zeysk Hydro Power Plant –Russian State border with China

Completion in 2013Supporting energy transmission to China

Supporting infrastructure of 2012 APEC Summit in Vladivostok

Completion in 2011

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Investment Program: Scope and Scale

2006 2007 2008 2009 2010 2011 2012

637.5

3498

5921,047

8,0607,4167,94610,314

6351

13,457

1,387

3,556

3,043

1,820

Investment Programme 2010 - 2012New transmission lines, km

New transformer capacity, MVA

59 new substations with the total capacity of 28,933 MVA

Construction of 70 new high‐voltage power lines with a total length of 9,800 kilometres

Increase grid capacity by circa 10%

3 years plans:

Construction of new transmission capacity

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Projected growth in cost efficiency

Split of projected cost reductions in 2010

Emphasis on cost efficiency

Source: The Company’s Data

RAB tariff agreement for 2010‐2012 sets up a target of 2.5% annual rate of reduction in operational costs controlled by the Company

Management Board of FGC has approved the General Programme for Efficiency Improvement, which includes the following key objectives:

Reduction in administrative, non‐operational and overhead costs, including transport, communication, rent, staffing level, etc)

Reduction in operational costs due to lower contractor fees and increased share of competitive procedures in the Company’s procurement

In the first 9 months 2009 the Company’s costs were reduced by RUR1,1 bn (2.4%) against the costs planned for the period

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Credit rating history

Leverage

2004 2005 2006 2007 2008 2009

B B+ B+ BB+ BB+ BBB

Baa2

Baa2

Baa2

Baa2

Projected increase in borrowing

Source: The Company’s Data

Federal Grid Company’s Net Debt is set to grow from RUR 18bn in 2009 to up to RUR 180bn by the end of 2012

This will lead to an increase in leverage as a proportion of the Company’s total capital from 2.5% (2009) to up to 25% (2012)

The Company has placed considerable emphasis on reducing its cost of borrowing. There has been considerable improvement in the Company’s credit rating over the past few years

A RUR 50bn bond issue has been approved by the Board of Directors in 2009. It will cover the debt portion of the financing of the investment programme in 2010 and into 2011

X10

RUR‐denominated debtBonds are included in the Russian Central Bank’s Lombard List

Outstanding bond issuesAs of December 2009

Maturity RUR m

Series 02 bonds 22.06.2010 7,000

Series 04 bonds 05.10.2011 6,000

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Management Board Includes 12 senior executives

Corporate Governance and Management

Sergei Shmatko

Chairman of theBoard of Directors

Energy Minister of the Russian Federation since May 2008.

Prior to that Mr. Shmatko was President of Atomstroyexport in 2005‐2008 and Chairman of the State Foundation for Conversion in 2002‐2005. Mr. Shmatko graduated from Marburg University with MSc in Economics and the High Academic Course of the Military Academy.

Oleg Budargin

Chief Executive Officer

Previous positions included Governor of Taimyr Autonomous District, Mayor of Norilsk and Deputy General Director of

Norilsk Metallurgy Plant. Mr. Budargin, born in 1960, graduated from Norilsk Industrial Institute.

Dmitry Troshenkov

Chief Financial Officer

Before joining the Company in September 2009 was Vice President of TNK‐BP since 2006. Prior to that Mr. Troshenkov held

senior management positions at OGK‐1, Lenenergo and Petroelectrosbyt. He graduated from St. Petersburg University.

Valeriy Chistyakov

Chief Operating Officer

Over 10 years high‐level experience in the Russian power sector. Most recent roles included Deputy Head of UES Engineering Centre

and CEO of Lenenergo. Mr. Chistyakov holds an MBA in business management from the State University of Management.

Shareholder meetings

Board of Directors12 members, including 4

independent directors

Service Reliability

Committee

Personnel and Remuneration

Committee

Audit Committee

Strategy Committee

Investment Committee

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Summary

Leading Russian Blue-chip Company

Unique position in the Russian market, largest Russian utility company by market cap

Guaranteed return on investment

Introduction of the new RAB tariff system which stimulates investment and efficiency

Significant growth prospects

RUR 519bn investment programme

Sound financial position

Strong growth in revenue and earnings coupled with balance sheet strength

Corporate governance

Transparency and commitment to “best practice” corporate governance

Scope to expand investor base

Plans for a GDR listing on a major European stock exchange

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Contacts

Federal Grid Company of Unified Energy System5A, Akademika Chelomeya Str., Moscow, Russia, 117630

Andrey GabovDirector for Corporate Governance

Alexander Duzhinov Head of Investor RelationsTel.: +7 495 710 90 64Mob.: +7 906 077 38 90

E‐mail: ir@fsk‐ees.ru

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