RSTI.L Regulatory News (RSTI)

PJSC ROSSETI discloses the IFRS financial results for 6 months of 2019

August 29, 2019. Moscow, Russia - PJSC ROSSETI (LSE:RSTI) ("Company"), the largest electricity transmission and distribution grid company in Russia, today discloses the IFRS interim (unaudited) financial results for the companies of Rosseti Group ("Group") for 6 months of 2019.

Financial results:

·; Revenue: 500.1 billion rubles (6 months 2018[1]: 485.3 billion rubles).

·; EBITDA: 167.7 billion rubles (6 months 20181: 146.7 billion rubles).

·; Net profit: 67.9 billion rubles (6 months 20181: 59.1 billion rubles).

·; Net cash flows from operating activities: 103.0 billion rubles (6 months 20181: 106.8 billion rubles).

Corporate highlights:

·; 12.02.2019 Moody's Investors Service rating agency upgraded the international scale long-term credit rating of PJSC ROSSETI and PJSC FGC UES to investment level "Baa3", (stable outlook).

·; 28.02.2019 ACRA credit rating agency affirmed the national scale credit rating to PJSC ROSSETI - ААА(RU), stable outlook.

·; 18.04.2019 The Board of Directors of PJSC ROSSETI approved a list of pilot projects as part of the implementation of the Concept "Digital Transformation 2030".

·; 29.04.2019 The Board of Directors of PJSC ROSSETI approved the Unified corporate identity standard of PJSC ROSSETI and organizations of the Group.

·; 27.06.2019 The annual General Meeting of Shareholders of PJSC ROSSETI approved the allocation of 5.02 billion rubles for the payment of interim dividends of PJSC ROSSETI for the 1st quarter of 2019.

Event after the reporting date:

·; 22.07.2019 International rating agency Standard&Poor's (S&P) upgraded the long-term international scale credit rating of PJSC MOESK and PJSC IDGC of Centre to investment grade BB+.

The Group demonstrated an upward trend of the key financial and economic indicators based on the results for 6 months of 2019.

Based on the results for 6 months of 2019, the Group made a net profit of 67.9 billion rubles, an increase of 14.9% compared to the same period of 2018.

EBITDA amounted to 167.7 billion rubles in the reporting period, which is 14.3% higher compared to the same period of 2018.

Net debt/EBITDA decreased in the 1H 2019 by 0.2х and amounted to 1.2х (1.4х as of 31.12.2018).

Financial results

Key factors contributing to changes in financial performance:

- growth in the main revenue element - electricity transportation by 10.3 billion rubles on the account of tariff indexation.

- growing electricity and capacity sales by 8.1 billion rubles on the account of sales volume increase due to obtaining the status of guaranteeing supplier from some subsidiaries and dependent companies.

- operating expenses growth by 13.8 billion rubles was affected mostly by non-controllable expenses dynamics:

1. electricity purchase to compensate losses, resulting from weighted average price growth for purchased electricity, alongside with losses reduction;

2. services of other territorial network organizations, on the back of growing tariffs;

3. purchase of electricity for sale, resulting from guaranteeing supplier status obtainment, herewith these costs are compensated by growth of revenue from electricity sales;

4. amortization, resulting from commissioning of PP&E under the investment programm.

By the end of 6M 2019, Group assets grew by 3.5%, up to 2,607.7 billion rubles (2,518.6 billion rubles as of December 31, 2018), mainly on the back of growing PP&E, resulting from new capacity commissioned under the investment program, as well as growing right-of-use assets (considering IFRS 16 "Rent" application since January 1, 2019).

Pavel Grebtsov, acting in lieu of Deputy Director General for Economy and Finance, noted, that ROSSETI Group keeps demonstrating upward dynamics of profitability and financial stability highlights, along with unquestionable reliability of electricity transportation, quality and accessibility of electricity supply for consumers.

More detailed information about the consolidated financial statements for the period ended June 30, 2019, can be found on the National Storage Mechanism at http://www.morningstar.co.uk/uk/NSM or on the Company's website at http://www.rosseti.ru/.

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For further information please contact:

PJSC ROSSETI

Maria Stepanova +7(495) 995 5333 (ext. 3961)

Yulia Martynova +7(495) 995 5333 (ext. 3834)

Horizon

Maria Novokreschenova +7 (495) 225 0335

Yaroslav Gryaznov +7 (495) 225 0335 (ext. 1010)

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Public Joint Stock Company ROSSETI (PJSC ROSSETI) is one of the largest electric grid companies in the world. The Company manages 2.35 million kilometers of power lines and 507,000 substations with more than 792 GVA of transformer capacity.

ROSSETI comprises 34 subsidiaries and dependent companies, including 15 interregional grid companies and one transmission grid company. The controlling shareholder with an 88.04% stake in the Company is the government represented by the Federal Agency for State Property Management of the Russian Federation.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of PJSC ROSSETI. You can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might", the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industry, as well as many other risks specifically related to PJSC ROSSETI and its operations