Sales Results


			ECONOMICS


	Sales Results In 2002, the revenues of the Holding Company's enterprises from the sale of electricity and heat increased by 24% compared to 2001.

	The bulk of sales revenues at the SDCs of OAO RAO "UES of Russia" come from the sale of electricity: 77.2% at regional energos of the Holding Company and 95.2% at AO-power plants. In 2002, the sales revenues at regional energos increased by RUB 186.9 billion, or 65.7%, compared to 2000, and at AO-power plants by RUB 12.2 billion (42.0%). The electricity sales increased at the regional energos by RUB 153.6 billion (73.2%) and at the AO-power plants by RUB 13.4 billion (52.1%). A major part of the total sales proceeds at the regional energos of the Holding Company came from the seven largest energy systems. For instance, the increase in the sales proceeds at regional energos in 2002 compared to 2000 to a great extent (i.e., RUB 67.2 billion, or 36.9% of the total growth) was provided by such large energy systems as "Mosenergo" (increase of RUB 22.5 billion), "Tyumenenergo" (RUB 12.7 billion), "Lenenergo" (RUB 12.3 billion), "Sverdlovenergo" (RUB 6.0 billion), "Samaraenergo" (RUB 5.5 billion), "Permenergo" (RUB 4.8 billion), and "Kuzbassenergo" (RUB 3.4 billion). In 2002, the overall production costs at the regional energos increased by RUB 185.4 billion, or 74.1%, compared to 2000, and at the AO-power plants by RUB 12.2 billion (48.0%). The electricity production costs reached RUB 148.4 billion (82.7%) at the regional energos and RUB 13.1 billion (58.6%) at the AO-power plants. A faster growth in expenses is due to such factors as increase in the cost of fuel and electricity purchased on the FOREM, increase in the amount of the subscription fee and a higher water usage tax rate, and revaluation of fixed assets. It should be noted that the revaluation of fixed assets carried out by the Holding Company on 1 January 2002 increased the depreciated value of the fixed assets and the amount of depreciation charges twofold, thus increasing the Holding Company's investment resources. The cost of energy companies' fixed assets is now near their current market value. A higher rate of growth of production expenses compared to the growth rate in sales proceeds (29.4% and 23.8%, respectively) throughout the SDCs of the Holding Company led to a decrease in gross profit in 2002 compared to 2001. The gross profit of the regional energos in 2002 fell by RUB 4.6 billions compared to that in 2001, whereas the gross profit of the AO-power plants fell by RUB 4.5 billion.

	Sales Results*


Indicators	Total			out of which:
	Total			Electricity			Heat
	2000	2001	2002	2000	2001	2002	2000	2001	2002


Regional energos of the Holding Company

Revenue from sales of goods, products, work, and services, RUB billion	284.12	375.15	470.97	209.97	284.04	363.59	55.40	73.26	88.23

Cost of goods, products, work, and services sold, RUB billion	250.36	335.32	435.77	179.46	247.96	327.85	55.16	72.5	90.89

Gross profit, RUB billion	33.76	39.83	35.20	30.51	36.08	35.74	0.24	0.76	-2.66

Costs per RUB 1 of sold products, RUB	0.88	0.89	0.93	0.85	0.87	0.90	1.00	0.99	1.03


AO-power plants of the Holding Company

Revenue from sales of goods, products, work, and services, RUB billion	28.94	38.49	41.09	25.72	36.32	39.13	0.85	0.99	1.14

Cost of goods, products, work, and services sold, RUB billion	25.41	30.55	37.60	22.29	28.41	35.36	0.90	0.97	1.18

Gross profit, RUB billion	3.53	7.94	3.49	3.43	7.91	3.77	-0.05	0.02	-0.04

Costs per RUB 1 of sold products, RUB	0.88	0.79	0.91	0.87	0.78	0.90	1.06	0.98	1.03


TOTAL at regional energos and AO-power plants of the Holding Company

Revenue from sales of goods, products, work, and services, RUB billion	313.06	413.64	512.06	235.69	320.36	402.71	56.25	74.24	89.36

Cost of goods, products, work, and services sold, RUB billion	275.77	365.87	473.36	201.76	276.36	363.21	56.06	73.48	92.08

Gross profit, RUB billion	37.29	47.77	38.70	33.93	44.00	39.50	0.19	0.76	-2.72

Costs per RUB 1 of sold products, RUB	0.88	0.88	0.92	0.86	0.86	0.90	1.00	0.99	1.03


Largest regional energos in terms of sales revenues**

Revenue from sales of goods, products, work, and services, RUB billion	106.35	142.23	173.56	77.43	106.56	131.9	22.13	29.90	36.80

Share in the total cost of goods, etc., at regional energos, %	37.40	37.90	37.20	36.90	37.50	35.90	39.90	40.80	44.80

Share in the total cost of goods, etc. at regional energos and AO-power plants, %	34.00	34.40	34.20	32.90	33.30	32.40	39.30	40.30	43.90

Cost of goods, products, work, and services sold, RUB billion	84.72	119.60	155.65	58.55	86.18	115.7	20.52	28.76	37.0

Share in the total cost of goods, etc., at regional energos, %	33.80	35.70	36.10	32.60	34.80	34.90	37.20	39.70	43.80

Share in the total cost of goods, etc. at regional energos and AO-power plants, %	30.70	32.70	33.10	29.00	31.20	31.40	36.60	39.10	42.90


* According to the Russian Accounting Standards (RAS). ** Mosenergo, Lenenergo, Samaraenergo, Tyumenenergo, Sverdlovenergo, Kuzbassenergo, Permenergo.