Business model

TRANSMISSIONHaving generatingand heating networkassets within the Groupensures the reliablecontrol of cash flowsfrom the end consumersfor the thermal powerproduced.FUELHaving fuel assets within the Group ensuresthe reliable operation of generating equipmentand minimizes logistics and price risks.TRADINGPJSC Inter RAO is a Russian exporter/importer of electricity.The Group’s trading assets are located in Russiaand European countries, which ensures a high level of operating efficiency.FOREIGN ASSETS5,267 kmlength of electric power transmission networks12.6of the Group’sinstalled capacity8.1%of the Group’selectric power output0.5%of the Group’sthermal power outputELECTRICITY GENERATIONHEAT GENERATIONThe competitive advantages of the Generation segment are:a significant volumeof installed capacity;a substantial share of the market of generating facilitiesin the regions of operation;and a low level of sensitivity to macroeconomic changesin the regions of operation due to the broad geographicaldistribution of assets compared with generating companies whosefacilities are concentrated in a single united energy system (UES).ENGINEERINGEnsures the monitoring of projectsto build and modernize the Group’sgenerating facilities and lowers the riskof contractors failing to complywith terms and conditions. Utilizesunique experience and technicalcapabilities to developengineering serviceson the external market.SUPPLYThe Group’s energy supplysegment has a largemarket share in the RussianFederation, performsthe functions of a guaranteedsupplier in major economicallydeveloped regionsof the Russian Federation,and offers a broad rangeof related services.