OJSC “ Bashkirenergo ” Financial and Operational Results of 6 months of 2011 (IFRS)

1. Bashkir open joint-stock company of the power industry and electrification OJSC“BASHKIRENERGO” OJSC “Bashkirenergo” Financial and Operational Results of 6 months of 2011(IFRS) Andrey Makarov, CEO of OJSC “Bashkirenergo” Conference-call presentation, September 6, 2011

2. Key Financial Indicators Revenue structure, % Structure of operating expenses, % • Factors for change in revenue: • Revenue reduction in the statements for the six months of 2011 is the result of reclassification of all operations of LLC ESKB into the separate line “Profit from the discontinued operations” due to the decision of to sell the retail company. • Factors for change in operational expenses: • Fuel costs for 6 months of 2011 making up 54% of overall operating expenses increased 12% to 13,783 mln RUR (482 mln USD) and were driven by a 15% gas price indexation, as well as by a 4% rise in power output by thermal power plants. The slower growth pace of fuel costs compared to gas price hike is explained by the reduction in specific consumption of equivalent fuel. • Purchased electricity and capacity sales fell 70% to 1,992 mln RUR (70 mln USD) as the result of reclassification of the LLC ESKB results.

3. Key Financial Indicators for 6 months of 2011 • The intersegment revenue between LLC ESKB (retail company) and LLC “BashRES” (distribution grid) with OJSC “Bashkirenergo” (genco) has become external. • OIBDA is adjusted for depreciation and otheritems. • Net profit is adjusted for intergroup dividends additional depreciation charge and some provisions. * In compliance with the IFRS standards for the reason of the decision by the Board of Directors of OJSC “Bashkirenergo” to sell the retail company, all operations of LLC ESKB are reflected in a separate line “Profit from the discontinued operations”.

4. “Generation” segment operational results for six months of 2011 Power Generation 2008 – 2011, mlnkWH • Heat output of the Company amounted to 13,956 thousand Gcal matching the results of 2010. • The specific consumption of equivalent fuel for heat output fell 1 kg/Gcal to 142.8 kg/Gcal compared to the same period last yeardue to heat output redistribution from boilers to CHPs. • OJSC “Bashkirenergo” total power generation in the first six months of 2011 was 11,476 mln kWh, gaining 4.3% year-over-year, Capacity factor rose to 62%. • The specific consumption of equivalent fuel fell 2.5 g/kWh for electricity generation to 316.7 g/kWh as the result of energy efficiency measures. Electricity and capacity sales structure at OREM • Electricity sales at the wholesale market for six months amounted to 12,356 mlnkWh, with 1,690 mln. kWhof purchased electricity. • Capacity sales amounted to 3,681 МW a month. Heat output by segments, thousand Gcal The main reason for strong operational results in Generation segment is a preferable price situation at OREM.

5. Operational results of Power Grid for 6 months of 2011 Mln kWh 10 847 1,43% • Redistribution of actual power flow due to the grid regime factors resulted in a slight increase of power losses both in transmission and distribution grid. • The revision of transmission tariffs of transmission and distribution line of OJSC “Bashkirenergo” caused little financial impact in the Company’s overall results.

6. 1 Structure of assets, equity and liabilities as at June 30, 2011. Mln. RUR • In 6 months the Company assets increased by 9%. • Property, plant and equipment increased by 7% due to new commissioning and increase of construction in-progress. • Liabilities increased by 44% as the result of growth of loans and trade and other payables. 2 433 • By the end of the six months of 2011 the Company’s financial debt increased to 2,433 mln RUR (87 mln USD) mainly due to a three-year loan for the construction of a new power station SGU CHP-5 obtained from Sberbank. . 866 • The debt/OIBDA ratio still stays at the comfortable level of 0.43.

7. Investment projects in “Generation” segment Construction of CHP-5 of Ufa with 2 gas-steamunits (SGU-220 MW) • On April 29 the Board of Directors approved the decision to resume the construction of the SGU CHP-5 in Ufa (440 MW, 290 Gcal/h) with the total project cost of 14 bln RUR. • On June 15, 2011 OJSC “Bashkirenergo” settled all the payments amounting to 2,113 mln RUR for the gas-turbine, steam-gas, and generator equipment produced for SGU CHP-5 in Ufa. Construction of SGU-60 at CHP-2 of Ufa • Modernization of the existing steam turbine with GTUSGT-800 Siemens 47 MW increasing the unit install capacity to 53 МWand 35 Gcal/h. • On August 29, 2011 SGU-60 was officially commissioned and starting from September 1, 2011 it began to supply electricity and capacity to OREM.

8. Disclaimer • Statements contained in this presentation may contain forward-looking information that reflects management’s current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations

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