Address of the Chairman of the Board of Directors to Shareholders and Investors

Dear Shareholders and Investors!

IDGC of Centre, JSC is a part of IDGC Holding Group of Companies, the leading power grid company in the world, and holds one of the leading positions according to the main financial and operation and performance indicators; these facts are once more proved by the results achieved by the Company in 2011.

The Company is successfully realizing the program for reliability improvement of electric power network assets, and within the review period, IDGC of Centre, JSC ensured reliable and continuous supply of electric power for 11 regions of the Central Federal District of Russia in the territory of which the Company carries out its activities.

In 2011, the Company completely finished its switch to a new RAB-based tariff regulation system using return on invested capital method and agreed the investment programs with the regional regulating bodies up to 2017.

In the mid-term work with a new system of tariff regulation will remain a growth driver for investment attractiveness of the Company and will allow us to channel the monetary funds to fixed assets renovation and reduce wear level of the equipment and infrastructure of distribution power grid complex providing the opportunity for realization of regional programs of the Russian Federation subjects.

Innovative development is a strategic priority of IDGC of Centre, JSC. In 2011, Innovative Development Program up to 2016 was worked out and approved in IDGC of Centre, JSC. Reduction of the cost of electric power transportation by 2016 and increase in reliability level of information on disturbances distribution power networks should be the specific results of the program realization.

Strategic objectives tackled by the management bodies of IDGC of Centre, JSC at present are increasing the total operation and investment efficiency of the Company by means of increase in labour efficiency, reduction of unit cost of the performed work by implementing a complex management system for business assets, applying most economical technical solutions and increasing reliability of grid facilities.

While estimating the prospects for operation of the Company I would like to note good results achieved during all seven years of work with IDGC of Centre, JSC. The Company is facing serious tasks solution of which to a large extent will contribute to economic development of the Central Federal District of Russia and the electric power distribution complex of the country.

I believe that IDGC of Centre, JSC will fulfill these tasks successfully and will continue to work efficiently as one of the leaders of IDGC Holding Group of Companies.