PJSC MOESK announces IFRS financial results for 9 months of 2019

PJSC Moscow United Electric Grid Company (hereinafter referred to as PJSC MOESK or the Company, MSRS ticker on the Moscow Stock Exchange), a member of the PJSC Rosseti Group of Companies, which provides electric power transmission services in the city of Moscow and the Moscow Region under the brand name "Rosseti Moscow Region", publishes consolidated financial results according to International Financial Reporting Standards (IFRS) for the 9 months of 2019.

The main results:

million rubles

Financial performance	9 months 2019	9 months 2018	9 months 2019/9 months 2018
Revenue	115,876	113,702	2%
- power transmission	108,697	105,904	2,6%
- technological connection	4,787	5,292	-9,5%
Operating expenses	(104 745)	(103 264)	1,4%
Adjusted EBITDA	30 965	30 990	-0,1%
Net profit	6 687	5 792	15,4%

Adjusted EBITDA is calculated as EBITDA (profit for the reporting period before taxes, interest expenses and depreciation), excluding financial income, impairment losses on fixed assets, impairment of advances paid and provision for expected credit losses

The Company's revenue amounted to 115.9 billion rubles, including revenue from electricity transmission- 108.7 billion rubles, revenue from technological connection- 4.8 billion rubles. In the reporting period, net profit amounted to 6.7 billion rubles.

Over the 9 months of 2019, compared with the same period last year, the Company's revenue grew by 2%, including revenue from electricity transmission - by 2.6%, due to an increase in the average tariff for electricity transmission services and the volume of electricity supplied.

The cost of sales for the first 9 months of 2019 increased by 1.4%, primarily due to the growth of uncontrolled expenses (depreciation and purchase of electricity to compensate for losses).

Net profit for the 9 months of 2019 amounted to 6.7 billion rubles, an increase of 15.4% compared with the previous year.

For reference:
The following subsidiaries are included in the consolidated financial statements of the Group: JSC MOESK-Engineering, JSC “Plant on repair of electrical machinery”, JSC Energotsentr.

The consolidated financial statements of PJSC MOESK under IFRS for 9 months of 2019 are available on the corporate website of the Company: www.moesk.ru