IDGC OF CENTRE:

RESULTS OF 1 HALF 2010,

FORECAST FOR 2010

October 5, 2010

Disclaimer

The information in this presentation was received from the sources which, in opinion of IDGC of Centre (“the Company”),

are reliable. Nevertheless, we do not guarantee accuracy of the given information which may be short or incomplete. All

opinions and estimations containing in the present material reflect our opinion at the date of publication and are subject

to change without notice.

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

to purchase or subscribe for, any shares or other securities representing shares in the Company, 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.

The information in this presentation includes forward-looking statements. These forward-looking statements include all

matters that are not historical facts, statements regarding the Company’s intentions, beliefs or current expectations

concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth,

strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks

and uncertainties, including, without limitation, the risks and uncertainties to be set forth in the prospectus, because they

relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that

forward looking statements are not guarantees of future performance and that its actual results of operations, financial

condition and liquidity and the development of the industry in which the Company operates may differ materially from

those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the

Company’s results of operations, financial condition and liquidity and the development of the industry in which the

Company operates are consistent with the forward-looking statements contained in this presentation, those results or

developments may not be indicative of results or developments in future periods

The Company does not bear the responsibility for consequences of use of opinions containing in the present report or

applications, or for incompleteness of the information. No person is under any obligation to update or keep current the

information contained herein.

By attending the presentation you agree to be bound by the foregoing limitations.

www.mrsk-1.ru 2

Company‟s storyline

2010

January „09 the first 3 branches transferred to RAB: Belgorodenergo, Lipetskenergo, TverenergoApril „09 Listing at MICEX. The Company‘s shares were included into ―В‖ quotation list of exchangeNovember „09 the Company obtained the credit rating S&P BB-/B/ruAA- forecast ―Stable‖

April „07The final structure of the Company was approved, the Company now includes 11 regional grid companies in Central Russia (decision of the Board of Directors of RAO UES of Russia)

2004-2005 2006 2007 2008 2009

December „04―Interregional Distribution Grid Company of Centre‖, Open Joint-Stock Company, was incorporated

March „08 Connection DGCs to IDGC of CentreMay „08 Company‘s shares were launched for trading at MICEX (MRKC) and RTSJuly „08 JSC ―IDGC Holding‖ became the majority shareholder of the CompanyOctober „08 Shares of IDGC of Centre were included in calculation base of MICEX PWR

„06 Enhancement of DGC management system. Transferring of powers of the DGC sole executive body to the Company

2010

January „10 Another 2 branches transferred to RAB: Kurskenergo, YarenergoJuly „10 Rating Agency S&P approved the Company‘s credit rating ―BB-‖, forecast ―Stable‖July „10 Applications of REC are submitted to FST of Russia on the remaining 6 branchesSeptember‟10 FST of Russia carried out the approving meeting (correcting of tariff applications)

www.mrsk-1.ru 3

Key indicators

Capitalization (as of 31.08.2010)

RUR 51.97 blnUSD 1.71 bln

Number of shareholders(as of 12.05.2009)

15,157

Revenue(RAS 2009) RUR 49.1 bln(RAS 1H 2010) RUR 29.4 bln

Net profit(RAS 2009) RUR 1.3 bln(RAS 1H 2010) RUR 2.5 bln

Net assets(RAS as of 30.06.2010)

RUR 43.8 bln

Output(2009 )(as of 30.06.2010

53.1 bln kWh27.77 bln kWh

Length of power lines (overhead 0.4 — 110 kV power lines as of 30.06.2010)

372.4 thousand km

Capacity of substations(as of 30.06.2010)

35 — 110 kV 31.0 GVA

6 — 10/0.4 kV 14.9 GVA

Number of personnel(as of 30.06.2010)

28,088

www.mrsk-1.ru 4

JSC “IDGC Holding”*

JSC “IDGC of Center”

Minority shareholders

50.23% 49.77%**

JSC “YarESK”

JSC “Energetik”

51%

Belgorodenergo

Брянскэнерго

Воронежэнерго

Kostromaenergo

Kurskenergo

Lipetskenergo

Orelenergo

Smolenskenergo

Tambovenergo

Tverenergo

Yarenergo

Branches Subsidiaries

Group of Companies

- November 11, 2009Subsidiary company JSC "Energetik" acquired a controlling stake in JSC ―YarESK‖- the target company for the consolidation of power grid assets in the Yaroslavl region

100%

** - taking into account the State‘s share 0.46%

Structure of Group of Companies IDGC of Center . Key shareholders

* - the share of the State in JSC “IDGC Holding” – 52.69%

JSC “Yargorelektroset”

51%+49%

- August 3, 2010

JSC “IDGC of Center” signed a contract for the acquisition of a controlling stake in JSC “Yargorelektroset” - one of the largest TSO in CFD. As a result of the transaction under the control of JSC “IDGC of Center” will be more than 90% of the assets of the power grid complex of the Yaroslavl region (the deal is on the completion stage)

Operational business units11 branches

www.mrsk-1.ru 5

Share capital structure

* - as of 12.05.2010

IDGC of Center has a diversified share capital structure. Free float according to the Company‟s management estimations is about 30%.

www.mrsk-1.ru 6

Management bodies structure

General Meeting of Shareholders

Board of Directors

Committee for Technological Connection (5)

Committee for Strategy and Development (1)

Internal Audit Commission

Auditor

Internal Control and Audit Department

Reliability Committee(2)

Committee for Personnel and Remuneration (3)

Committee for Audit(4)

Chairman of the MB–Director General

Management Board

Executive bodies:

High authority:

Strategic management body:

Committees (5):

Internal control bodies over business activity

External bodies responsible for monitoring financial and economic activities:

Control bodies over the Company’s business activity

Bodies providing recommendations for the Board of Directors over the Company’s strategic development

formed in 2009

www.mrsk-1.ru 7

Target subsystems of the management:

• Growth and changes• Finance• Consumers• Main business processes• Management system• Personnel

Strategic vision of the management

Challenges of the top level

Goals of the Company

Growth Finance Consumers

Industry leadership

Management PersonnelProcesses

Ensure long- term growth of

shareholder capital value

Enhance the efficiency of

business

Ensure effective sales of

services

Realize efficient and safe functioning and

innovative development of

electricity network complex

Ensure development and

efficient functioning of management

system

Enhance efficiency of

human resources

www.mrsk-1.ru 8

Credit rating

The level confirms the Company‟s ability to extend credit

History of credit rating

Confirmed July „10

Assigned November ‗09

www.mrsk-1.ru 9

Scale of international rating(in foreign currency)

IDGC of

Centre

Mosenergo

MUEC

Outlook (C-Stable)(Н-Negative)

In 2009 Standard&Poor‟s assigned credit rating to the

Company «ВВ-/В/ruAA-» forecast «Stable»,

In July 2010 the rating was confirmed on the same level

National rating of CG

History of RCG of IDGC of Center

Confirmed July‟ 09

Confirmed February‗09

Assigned September ‗08

“7” Developed practice of

corporate governance. Leading position

among IDGCs

www.mrsk-1.ru 10

Rating NRCG 7 indicates low risks of corporate

governance, compliance with the RF legislation

and the Code of Corporate Behavior

Developed practice of corporate governance

Stock market

www.mrsk-1.ru 11

Dynamics of changes in IDGC of Centre share price, MicexPWR

and Network Index in 2010Start of trading:May 21, 2008

Quotation list:«B» MICEX

IDGC of Centre shares are included in MICEX PWR index calculation base

Ticker symbols

MICEX MRKC

RTS classic MRKC

RTS stock MRKCG

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

31

.12

.09

22

.01

.10

05

.02

.10

19

.02

.10

09

.03

.10

23

.03

.10

06

.04

.10

20

.04

.10

04

.05

.10

18

.05

.10

02

.06

.10

16

.06

.10

30

.06

.10

14

.07

.10

28

.07

.10

11

.08

.10

25

.08

.10

08

.09

.10

22

.09

.10

05

.10

.10

МРСК ЦентраMicexPWRИндекс Сети

c 31.12.09IDGC of Center

MICEX-PWR

Index “Network”

From 31.12.2009

Market multiples on IDGCs and foreign companies-analogues *

Capitalization of distribution grid companies as of 31.12.10 and of 30.09.10, RUR bln (MICEX)

* Calculations of the Company, data of investment banks covering the activities of IDGCs

** Calculations of the Company, data of investment banks covering the activities of IDGCs (foreign analogues: Eletropaulo, Compania General de Electricidad, Aksu Enerji ve Ticaret, etc.)

**

www.mrsk-1.ru 12

Key indicators of stock market (1)

IDG

C H

old

ing

MO

ES

K

IDG

C o

f C

entr

e

Lenenerg

o

IDG

C o

f C

entr

e a

nd V

olg

a

IDG

C o

f S

iberia

IDG

C o

f U

rals

IDG

C o

f N

ort

h-W

est

IDG

C o

f V

olg

a

IDG

C o

f S

outh

IDG

C o

f N

ort

h C

aucasus

140

53

3421 23 22 26 23 22

9 4

197

69

52

28 27 26 25 21 208 5

0,00

50,00

100,00

150,00

200,00

250,00

Капитализация на 31.12.09, млрд. руб. Капитализация на 30.09.10, млрд. руб.1,0

5,6

13,5

0,8

5,7

22,5

2,2

11,210,2

0,00

5,00

10,00

15,00

20,00

25,00

EV/S 2010П EV/EBITDA 2010П P/E 2010П

МРСК Центра

Среднее по российским аналогам

Среднее по развивающимся странам

IDGC of Center

Average on Russian companies

Average on developing countries

Capitalization as of 31.12.09, RUR bln Capitalization as of 30.09.10, RUR bln

Average bid-ask spread of MRKC at MICEX (%) , 2009-2010

Day-average number of contracts at MICEX

Stock turnover at MICEX, Jan- Aug 2010, RUR mln

28,60%

3,48%

0%

5%

10%

15%

20%

25%

30%

35%

40%

НДЦ (% от УК)

ДКК (% от УК)

Proportion of shares in the nominal holding by depository exchanges 2009-2010gg:

www.mrsk-1.ru 13

Key indicators of stock market (2)

4,86%

0,41%

0,00%

1,00%

2,00%

3,00%

4,00%

5,00%

6,00%

янв.0

9

фев.0

9

мар.0

9

апр.0

9

май.0

9

ию

н.0

9

ию

л.0

9

авг.

09

сен.0

9

окт

.09

ноя.0

9

дек.

09

янв.1

0

фев.1

0

мар.1

0

апр.1

0

май.1

0

ию

н.1

0

ию

л.1

0

авг.

10

сен.1

0 20

105

0

100

200

300

400

500

600

700

800

900

1000

янв.0

9ф

ев.0

9м

ар.0

9апр.0

9м

ай.0

9ию

н.0

9ию

л.0

9авг.

09

сен.0

9окт

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ноя.0

9д

ек.

09

янв.1

0ф

ев.1

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ар.1

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0м

ай.1

0ию

н.1

0ию

л.1

0авг.

10

сен.1

0

2 685

0

500

1 000

1 500

2 000

2 500

3 000

NDC (%SC)

DCC (%SC)

www.mrsk-1.ru 14

IDGC of Centre

• RAS for 1H 2010, forecast for 2010

• Transit to RAB-based regulation

www.mrsk-1.ru 15

Revenue by activities: results, forecast

(RAS)

www.mrsk-1.ru 16

RUR bln 30.06.2009 30.06.2010 Change

Revenue 24.92 29.41 18.0%

Cost 21.33 25.04 17.4%

Gross profit 3.58 4.37 22.0%

Gross profit margin 14.4% 14.9% 0.5 p.p.

EBITDA 4.61 5.57 20.8%

EBITDA margin 18.5% 18.9% 0.4 p.p.

Net profit 1.77 2.49 41.2%

Net profit margin 7.1% 8.5% 1.4 p.p.

05.57

4.61

+20.8%

EBITDA, RUR bln

1H2009

1H2010

1H2010 performance

(RAS)

12,93%

10,99%

8,63% 8,58%

31.12.2009 г.31.03.2010 г.30.06.2010 г.31.08.2010 г.

www.mrsk-1.ru 17

Capital structure

RUR bln 31.12.2009 30.06.2010 Change

Equity 41.23 43.73 6.1%

Long-term liabilities 10.73 11.23 4.7%

Short-term liabilities 0.40 - -100%

Accounts payable 6.59 8.33 24.4%

Other 2.1 2.22 5.7%

Total liabilities 61.05 65.51 7.3%

Short-term liabilities –

0%

67%

18%

1%

11%3%

Собственный капитал

Долгосрочные обязательства

Краткосрочные обязательства

Кредиторская задолженность

Прочее

67%

17%

0%13%

3%

Собственный капитал

Долгосрочные обязательства

Краткосрочные обязательства

Кредиторская задолженность

Прочее

Liabilities structure

31.12.2009 30.06.2010

Average interest rate on credits, 2008 - 2010

1H2010 performance

(RAS)

Equity

Long-term liabilities

Short-term liabilities

Accounts payable

Other

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

0

2

4

6

8

10

12

2006 2007 2008 2009 2010

EBITDA Чистая прибыль NetDebt/EBITDA

RUR bln Ratio

www.mrsk-1.ru 18

1H2010 performance

(RAS)

Year EBITDA Net Profit Net Debt Net debt/

EBITDA

2006 4,74 1,31 3,27 0.69

2007 6,83 1,98 6,14 0.90

2008 7,49 0,87 9,31 1.24

2009 7,64 1,33 10,76 1.41

2010(F) 10,86 3,59 13,61 1.25

1 H „10 5,57 2,49 9,6* 1,72

EBITDA vs. Net Profit, RUR blnRatio Net Debt/EBITDA

Net profit

* as of 31.08.2010

0

2

4

6

8

10

12

Освоение К

В

Вво

д О

Ф

Осво

ен

ие

КВ

Вво

д О

Ф

Осво

ен

ие

КВ

Вво

д О

Ф

Осво

ен

ие

КВ

Ввод

ОФ

Осво

ен

ие

КВ

Вво

д О

Ф

2006 2007 2008 2009 2010

Прочее

Новое строительство и расширение действующих объектов

Техперевооружение и реконструкция

YearVolume of capital

investments,RUR bln w/o VAT

Commissioning of fixed assets. RUR bln w/o

VAT

2006 4.509 4.350

2007 7.839 6.372

2008 9.071 7.739

2009 6.529 7.687

2010F* 10.701 10.797

RUR bln

www.mrsk-1.ru 19

Investment activity

Others

New construction and expansion

of existing facilities

Modernization and reconstruction

CI

FA CI

FA CI

FA CI

FA CI

FA

1

265

146

132

226

110

343

50

274

402

Investments (plan), RUR mln

2

3

4

5

6

7

8

9

1 – AIIS KUE of retail market2 – Input of transformer capacity of substation 110 kV ―Manezhnaya" (40 МVА)3 – Construction of substation 110/6/6 ―Kotorosl" and construction of HL-110 kV Frunzenskaya-1 to substation ―Kotorosl‖ (50 МVА/7 km)4 – Reconstruction of substation ―Sovetskaya‖ 110/6 kV (40 МVА)5 – Reconstruction of substation 110/10/6 kV ―Zapadnaya" – 2nd stage (63 МVА)6 –Modernization of Substation 110/6 kV №45 ―Kalininskaya" with installation of KRUE-110 kV (7 pcs.)7 –Modernization of substation 110/6-6 kV №10 with installation of KRUE-110 kV cells (2 pcs.), 6 kV cells (33 pcs.)8 – Complex of works on reconstruction of substation 35 kV ―Zubtsov‖ (transfer to 110 kV(50 МVА)9 –substation 110 kV ―Universitetskaya‖ – 2nd stage (40 МVА)

1,947

2010

18%

82%

9 крупнейших ИП

Прочее

TOTALfunding 2010:

RUR 8.83 bln

Key investment projects

www.mrsk-1.ru 20

Key investment projects in 2010

Key 9 IP

Others

forecast

0

50

100

150

200

250

300

350

Полная величина ИК

Остаточная величина ИК

184

64

158

54

Филиалы по которым планируется переход на RAB

RAB филиалы

Date of transition

Branch IRAB,RUR bln

From 01.01.2009

Belgorodenergo 19.930

Lipetskenergo 10.030

From 01.01.2010

Tverenergo 14.366

Kurskenergo 10.802

Yarenergo 8.968

During 2010

Bryanskenergo 6.687

Orelenergo 6.590

From 01.01.2011

Kostromaenergo 7.437

Tambovenergo 6.607

Voronezhenergo 12.810

Smolenskenergo 13.785

Transition to RAB

www.mrsk-1.ru 21

Expected IRAB on all branches according to independent estimations –RUR 118 bln

RAB planned

branches

RAB branches

IC full

value

IC residual

value

Contact information

www.mrsk-1.ru 22

JSC “IDGC of Center”

129090 Russia, Moscow, Glukharev per., 4/2Tel./fax: +7 (495) 747 9292www.mrsk-1.ru

Director on Corporate RelationshipsTatiana A. KulbakinaKulbakina_TA@mrsk-1.ru

Head of Department for Shareholders RelationshipTatiana N. MiroshnichenkoMiroshnichenko_TN@mrsk-1.ruTel.: +7 (495) 747 9292, ext. 3181

www.mrsk-1.ru 23

Appendix

24

Investment activity*

Year

Volume of capital investments,

RUR bln w/o VAT

Commissioning of fixed assets. RUR bln w/o

VAT

2009 6,529 7,687

2010F 10 616 10 785

2011F 18 929 17 895

2012F 22 717 21 457

2013F 33 622 32 653

2014F 33 231 33 983

0

5

10

15

20

25

30

35

40

Ос

во

ен

ие

КВ

Вв

од

ОФ

Ос

во

ен

ие

КВ

Вв

од

ОФ

Ос

во

ен

ие

КВ

Вв

од

ОФ

Ос

во

ен

ие

КВ

Вв

од

ОФ

Ос

во

ен

ие

КВ

Вв

од

ОФ

Ос

во

ен

ие

КВ

Вв

од

ОФC

I

FA CI

FA CI

FA CI

FA CI

FA CI

FA

RUR bln

2009 2010 2011 2012 2013 2014

*Presented data on investment program have been formed without taking into account changes made by FTS Order from 01.09.2010 N 218-E / 5 «On Amendments to the Order of the Federal Tariff Service of 15.08.2008 N 152-e/15 «On approval of the rate of return on invested capital».

(Registered by Ministry of Justice on 21.09.2010 N 18491).

Perhaps there will be changes in the middle of October 2010, when approving theadjusted investment program by the Board of Directors of IDGC of Centre.

25

Productive supply, forecast on 2010-2014

50,00

51,00

52,00

53,00

54,00

55,00

56,00

57,00

58,00

59,00

‗09

Bln KWh

‘10F ‘11F ‘12F ‘13F ‘14F

53,13

56,21

55,14

57,89

57,05

58,48

+3.8%

+1.9%

+1.5%

+1.5%

+1.0%

www.mrsk-1.ru 26

200

250

300

350

400

450

500

550

600

20

25

30

35

40

45

50

55

60

2006 2007 2008 2009 2010

MVBln KWh

Полезный отпуск э/э, млрд. кВтч Объемы ТП, МВт

YearProductive supply, bln

kWh

Growth rate,

%

Volume of technological

connection, MV

Growth rate,

%

2006 54.0 - 280.47 -

2007 56.4 4.4% 481.28 71.6%

2008 56.6 0.4% 479.84 -0.3%

2009 53.1 -6.2% 445.62 -7.1%

2010(F) 53.5 0.8% 531.55 19.3%

Appendix 1Sales of services (RAS)

Productive supply, bln KWh Volume of TC,

MW

www.mrsk-1.ru 27

Indicator 1H 2009 1H 2010 Change

Output, bln kWh 28.99 31.06 7.1%

Useful output, bln kWh 25.98 27.8 7.0%

Losses, bln kWh 3.0 3.3 1%

Losses, % 10.4 10.6 0.2 p.p.

1 полугодие 2009 г.

1 полугодие 2010 г.

27.8

25.98

+7.0%

Useful output,bln kWh

Appendix 2Production results for 1H 2010

1H 2009 1H 2010

www.mrsk-1.ru 28

Power transmission share market in 2008-2009 (in terms of money)

Technological connection share market in 2008-2009 (in terms of money)

Appendix 3Market share in 1H 2010

OWN REVENUE

REVENUE OF TGCs

OWN REVENUE

REVENUE OF TGCs

Bryanskenergo

Voronezhenergo

Tambovenergo

Yarenergo

Lipetskenergo

Tverenergo

Orelenergo

Kurskenergo

Smolenskenergo

Belgorodenergo

Kostromaenergo

Company‟s share in the power transmission market in regions, % (2009)

www.mrsk-1.ru 29

Tariffs

Average distributional tariffs, kop/kWh

Branch 2006 2007 2008* 2009* 2010*

Belgorodenergo 48,4 52,4 65,2 80,8 100,1

Bryanskenergo 40,5 74,9* 86,9 106,0 130,5

Voronezhenergo 38,2 45,5 74,0 91,1 102,4

Kostromaenergo 64,3 76,2 91,1 106,4 130,8

Kurskenergo 46,4 47,6 59,1 69,1 98,7

Lipetskenergo 33,5 42,3 64,8 82,2 111,1

Orelenergo 48,3 66,5 105,6 117,0 140,5

Smolenskenergo 65,4 73,0 90,3 110,4 123,8

Tambovenergo 47,0 49,3 87,3 100,3 108,3

Tverenergo 52,7 58,4 103,4 138,3 154,2

Yarenergo 48,4 43,3 59,8 74,0 86,2

* Tariffs are inclusive of the territorial network organizations

www.mrsk-1.ru 30

Tariffs

Average distributional tariffs w/o TNO, kop/kWh

Branch 2008 2009 2010

Belgorodenergo 64,5 79,8 98,9

Bryanskenergo 55,4 70,3 83,8

Voronezhenergo 52,8 62,6 71,5

Kostromaenergo 90,2 104,5 126,7

Kurskenergo 52,0 60,4 65,8

Lipetskenergo 52,9 68,9 91,8

Orelenergo 79,6 91,1 108,2

Smolenskenergo 85,7 105,3 118,0

Tambovenergo 51,8 62,6 70,9

Tverenergo 72,4 102,2 120,5

Yarenergo 42,1 51,2 60,6

www.mrsk-1.ru 31

Fixed assets

Fixed assets characteristic (as 0f 30.06.2010)

Capacity Length

35-110 kV, MVA

6-10/0,4 kV, MVA

35-110 kV, km

0,4-10 kV, km

IDGC of Center 31 013,4 14 866,2 51 615,5 320 777,3

Belgorodenergo 2 634,50 2 755,0 4 206,5 38 540,2

Bryanskenergo 2 281,80 759,1 3 516,7 22 048,2

Voronezhenergo 4 465,50 1 532,6 6 792,1 43 545,1

Kostromaenergo 1 707,00 1 420,3 4 304,5 20 648,2

Kurskenergo 3 286,50 1 420,4 4 716,9 29 541,1

Lipetskenergo 2 587,20 1 020,6 3 836,8 22 855,1

Orelenergo 1 682,00 794,4 3 082,2 24 692,3

Smolenskenergo 3 071,60 1 775,5 6 332,9 33 563,5

Tambovenergo 2 452,30 928,7 4 970,8 23 196,8

Tverenergo 3 962,20 1 521,6 6 718,0 39 475,3

Yarenergo 2 882,80 937,9 3 138,1 22 671,5