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IDGC of Centre

Company

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Interregional Distribution Grid Company of Centre

Owners:
Russian networks (Rosseti, earlier IDGC Holding) - 50,23%
Genhold Limited
The Bank of NewYork Mellon

Revenue and profit of the company, Thousand rub

RevenueProfit
201791 100 00019 000 000
30000 employees in 2015

Assets

Owners

+ IDGC of Centre
+ Genhold Limited
+ The Bank of NewYork Mellon

"Interregional Distribution Grid Company of Centre" (JSC IDGC of Centre) open joint stock company – the interregional distribution grid company, largest in the Russian Federation, which controlling stake (50.23%) JSC Russian Networks exercising control of IDGC/RSK of corporate methods holds (through Boards of Directors). The controlling shareholder is the state, the owning 61.7% in UK JSC Russian Networks.

The labor collective of JSC IDGC of Centre totals more than 30 thousand people. In general the share of JSC IDGC of Centre in the market of transfer of electrical energy of regions in areas of responsibility makes about 83%; a share of the company in the market of technology accessions in the territory of the Belgorod, Bryansk, Voronezh, Kostroma, Kursk, Lipetsk, Oryol, Smolensk, Tambov, Tver, Yaroslavl regions (the territory of 457.7 thousand square kilometers) - about 87%.

Major shareholders of JSC IDGC of Centre, except JSC Russian Networks, are Genhold Limited and The Bank of NewYork Mellon companies. 25% of stocks of IDGC of Centre are in free circulation. The number of shareholders — more than 16,000. The code of actions at the exchange: MICEX-RTS — Mrkc.Tikkery: Bloomberg — MRKC RX, Reuters — MRKC.MM.

Potential production of JSC IDGC of Centre is 2.3 thousand of substation of 35-110 kV with a total power of 32,600 MVA and 90.2 thousand substations of 6 — 10 kV with a total power over 16,500 MVA. Total length of transmission lines of 0.4 - 110 kV - 379 thousand kilometers.

The main strategic priorities of JSC IDGC of Centre are: ensuring reliable, regular and high-quality power supply of consumers; increase in the quality level and reliability of the rendered services; increase in investment soundness; energy saving and decrease in losses; increase in efficiency of operating costs; improvement of interaction with consumers, society and investors.

Since February 1, 2013 in the Bryansk, Kursk and Oryol regions, since April 25, 2013 in the Tver region power sales functions were transferred to JSC IDGC of Centre.

2019

30% of actions of the first stage of digital transformation calculated on five years are executed

The head "Rosseti the Center" and "Rosseti" Makovsky Igor Vladimirovich noted the Center and Volga region in December, 2019 that in the expiring year of the company provided unconditional implementation of all current production programs. Over 10 thousand km of the power transmission line and more than 2000 MVA are entered into work, 13 thousand transformer substations and 52 thousand kilometers of the air power transmission lines are repaired, 30.6 thousand hectares are cleared away and it is expanded 1 thousand hectares of glades.

The construction of a number of large objects is completed, input of new capacities within ensuring power supply of the enterprises which are important for social and economic development of regions is implemented. Over 72 thousand agreements of technology accession are executed. Operational efficiency is increased, financial and economic indicators are saved and improved in adverse external conditions.

The high level of trouble-free operation, despite serious tests is provided with bad weather. The quantity of emergency situations at the end of year in general on two companies decreased by 15%. In anticipation of winter of power passed tough test in the Tver region. The region endured two in a row unprecedented on force of a brunt of the disaster. Thanks to professionalism, accurate and harmonious work, dedication of specialists of two companies, mass shutdowns were liquidated in the shortest terms for such situations.

«
Strategic priorities for "Rosseti the Center" and "Rosseti the Center and Volga region" in 2019 became a turn of full-scale implementation of the Concept of digital transformation of an electric grid. "In 2019 we provided powerful start and the forced rates of works, having started, and in a number of regions having even already completed all key projects of the first stage of digital transformation. For today about 30% of all actions of the first stage calculated on five years are executed – is twice more, than it was planned initially", - Igor Makovsky emphasized.
»

In perimeter of the power companies 8 digital Command centers by networks and City dispatcher stations from where control of an electric grid of regions and large cities is online exercised are created. In the Belgorod region the first in perimeter is put into operation "Rosseti the Center" digital substation of Nikolskoye. In the Voronezh region construction of substation Sputnik began - it will be the first in the Central Russia digital center of a power supply constructed from scratch. In the Udmurt Republic installation of equipment on the first digital substation of the region Airport is complete. In Belgorod and Ivanovo the works on creation of digital Contact centers are completed.

Preparatory work on project implementation "A program method of identification of unaccounted volumes of the electric power using Big Data technology is finished. Development of technical solutions on telemetry on TP is complete and installation of an end-to-end system of an energy monitoring and installation of the distributed automation in Digital regions of the electric networks is begun. The mathematical model of network is accepted to development.

In Belgorod and Vladimir pilot projects on installation of drives of the electric power in a distribution network of low tension are successfully implemented. In the Udmurt Republic - a pilot project on informing consumers - the virtual manager. In the Yaroslavl, Lipetsk, Vladimir, Nizhny Novgorod and Tver regions "The digital electricity metering electrician" is put into trial operation. In the Lipetsk region tests of a unique complex of automatic condition monitoring of transmission lines using unmanned aerial vehicles and charging stations are complete.

Among the main effects of digitalization the head "Rosseti the Center" and "Rosseti the Center and Volga region" designated decrease by 50% of indexes of mid frequency and durations of shutdowns in networks, reduction for 30% of operating costs of 15% - capital costs, an increase in labor productivity and capitalizations of the companies.

IDGC of Centre begins large-scale digital transformation

In 2019 the company is going to put into operation about 4.8 thousand kilometers of transmission lines and about 750 MVA of power. The amount of financing of the program will be 15, 652 billion rubles.

Large volumes of works in the current year are planned within the first stage of implementation of the concept of digital transformation – over 5 billion rubles are planned for these purposes in the investment program. So, until the end of 2019 in all branches "IDGC of Centre" (works in 11 subjects of Central Federal District) within transition to a two-level management system the uniform command centers networks (UCCN) will be created. Similar divisions will create in the cities with the population over hundred thousand people. ETsUS will be equipped with inter-chip digital links and the most modern information systems that will allow to control online a status of power grid objects, to analyze parameters of quality of the electric power, to coordinate work of operational and exit and repair crews.

Also in 2019 project implementation Digital distribution zone and Digital substation will begin. Two first digital distribution zones in structure of the company will be created already until the end of the year based on branches "Belgorodenergo" and "Voronezhenergo". Among the main directions of this project - creation of active and adaptive network of 6-10 kV based on the intelligent switching devices allowing to localize in real time damages automatically transferring load from damaged of the unimpaired section of network and also implementation of intelligent metering devices of the electric power.

The Belgorod region will become one of the first regions where the digital substation will be constructed, – here this project will be implemented until the end of 2019 on PS of 35 kV of Nikolskoye of Belgorodenergo branch. Creation of the digital command center a distribution network which is based on the software and hardware complex of protection of automatic equipment and management executed on the latest digital technologies will become its result. Works on creation of digital substation and based on PS of 110/10 kV High in Kursk region will begin this year. This feeding center put into operation in 1970 is important for the region, it provides power supply of military unit, KGSHA of I.I. Ivanov, numerous social objects and residential districts of the city of Kursk.

In total in IDGC of Centre during the first stage of digital transformation which will be completed until the end of 2020, will be created the 10th digital distribution zone and 9 digital substations. Besides, 100% of the territory of branches will be covered by a digital radio communication. The absolute observability of substations of 35-110 kV will be provided, and to 31 distribution zone will carry out complex automation of network of 6-10 kilovolts and will implement an end-to-end system of an energy monitoring.

Implementation of the concept of projects of digital transformation in PJSC IDGC of Centre will allow to reduce costs for maintenance, repair and operation of objects of power grid infrastructure, to reduce losses in networks, to considerably reduce quantity and time of liquidation of technology violations and as a result – to increase quality and reliability of power supply of consumers.

2017: The net debt was reduced to 40.1 billion rubles

The consolidated revenue of the Company for the specified period made 91.1 billion rubles, including from electric power transmission – 87.6 billion rubles, from connection to power supply networks – 1.6 billion rubles, from resale of the electric power and power – 0.5 billion rubles and other revenue – 1.4 billion rubles. Profit before interest payment, taxes and depreciation (EBITDA) increased to 19.0 billion rubles. Profit for the period was 3.0 billion rubles.

Change of the consolidated revenue in 2017 is generally connected with increase in revenue from services in electric power transmission because of growth of an average rate and increase in volumes of a useful holiday. Due to the execution of a large number of large agreements of technology accession growth of revenue for services in technology accession at the end of 2017 was 14.3%. Since 2016 began to perform functions of the guaranteeing electricity provider in the territory of the Tver region IDGC of Centre that became the emergence reason as a part of the consolidated revenue of income from resale of the electric power and power.

Operating expenses of the Company for 2017 made 83.3 billion rubles that is 5.7% more, than a similar indicator for 2016. Growth of uncontrollable expenses became a pacing factor of increase in expenses: for 15.1% expenses on acquisition of the electric power increased by compensation of losses, expenses on services of third parties in electric power transmission increased by 5.0%. Depreciation was 9.6 billion rubles at the end of 2017 that for 0.9 billion rubles there is more similar indicator of last year. The additional factors which influenced change of expenses of the company in 2017 became recognition of impairment of fixed assets in the amount of 0.9 billion rubles, growth of taxes in the amount of 0.3 billion rubles and emergence of expenses on acquisition of the electric power for sale.

Net other income of the company decreased by 23.5% generally owing to reduction of writeoff amounts of accounts payable and income from non-paid received fixed assets and inventory stocks. The indicator of EBITDA of the company in reporting period increased by 6.1% and made 19.0 billion rubles. Profit for the period decreased by 37.5% and was 3.0 billion rubles in 2017. The most significant effect on financial results of the Company recognition of impairment of fixed assets and additional accrual of a tax in connection with an exception of non-operating expenses for the purposes of taxation of expenses on mobilization preparation rendered growth of revenue from services in electric power transmission and services in technology joining of consumers to power supply networks.

As of December 31, 2017 assets of IDGC of Centre were 105.1 billion rubles (for December 31, 2016 – 107.0 billion rubles). The net debt was reduced to 40.1 billion rubles (for December 31, 2016 – 40.7 billion rubles). The indicator decreased due to reduction of the loan portfolio in reporting period.

2013: SK: The director of IDGC of Centre caused damage on 880 million rubles through the under control IT contractor

The Main Investigation Department of the Investigative Committee of the Russian Federation brought criminal case concerning the former CEO of IDGC of Centre Evgeny Makarov and also the director of the company "Corporate service systems" Stanislav Milkin's (KorSys)[1].

They are suspected of commission of the crimes provided by Part 2 of Article 201 of the Criminal Code of the Russian Federation (abuse of authority), Part 5 of Article 33, Part 2 of Article 201 of the Criminal Code of the Russian Federation (complicity in abuse of authority), said in the statement of SK.

According to the investigators, in 2005 Makarov holding a position of the CEO of IDGC of Centre attracted the acquaintance Stanislav Milkin and other unidentified persons as helpers, having suggested them to direct the current activity completely under control of him KorSys, located in Belgorod. KorSys Makarov's spouse was one of major shareholders, consider in SK.

Makarov and Milkin, according to investigators, created conditions under which IDGC of Centre could not fulfill the obligations to consumers of the electric power without the conclusion of economically unprofitable agreements about KorSys concerning service of the information and technology systems located in 11 areas of the central part of Russia.

As a result of IDGC of Centre the material damage for the amount more than 880 million rubles was caused. A major shareholder of IDGC of Centre is the state, remind in SK.

The investigative actions and investigation and search operations directed to establishment of all circumstances of crime and also the persons involved in its commission are held.

Notes